Inventory management software is good for your business. In fact, it’s in your best interest to have the right tools to keep your inventory in check and your warehouse working like a well-oiled machine. And this software does all of that and much more.
Here are four reasons why using inventory management software is in your best interest.
Do More in Less Time
Cycle counting, reordering products, and receiving inventory can be tedious, time-consuming tasks when all you have to do them with is a pen and paper. Updating spreadsheets with new inventory information can become a job unto itself rather than simply being the means to an end.
But if you have the right tools, you don’t have to get bogged down in the details of recording data. Scan product barcodes and pull up all the data on each product’s quantities and locations. Set up automatic reorder points. And quickly scan in new inventory and look up where it goes to quickly receive orders into your warehouse.
Spend Money Carefully
Hoarding products in your warehouse increases carrying costs. When you stock up on products and then they just sit on the shelves longer than you were expecting they would, you wind up with two problems. First, you don’t have space for faster-selling products, and second, you run the risk of product spoilage or obsolescence as they remain unsold.
Inventory management software helps you monitor your sales over time and then plan for fluctuations in demand throughout the year. That way, for example, you don’t buy the same number of kiddie pools in the winter as you do in the summer.
Remember those automatic reorder points? Those don’t just save time, but they also eliminate impulsivity. Instead of worrying if you should take advantage of limited-time special pricing if you order products in bulk, you can relax and trust that you already made the right decision long ago.
Auto reorder points ensure you only order more products when you need them. They’re key to having a JIT (Just In Time) inventory strategy. You’ll avoid making rash decisions that might seem like good deals at the moment but turn out to be expensive down the road.
I’ve harped on overstocking quite a bit in this blog post. But shortages are just as devastating, if not more so. If you struggle with maintaining an adequate supply of products in your store or warehouse, your customers will begin to notice and realize they can’t always depend on you to have what they need.
The key is to find the right balance between too much and too little. Inventory management software helps you do that by doing everything we’ve talked about up to this point: tracking sales trends, setting up auto reorder points, and managing supply chains.
It is in your best interest to use inventory management software because it will save your business time and money that can be put to much better use.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.