To know about inventory management, you need to be familiar with the concept of inventory. Any business will have a component called inventory which is, in layman terms, a list of the products to be sold.
Every time a product is sold, the inventory is updated and now shows the current amount of product that needs to be sold.
Now, if the number of products is less than, say ten, it will be really easy to maintain inventory in a book or a notepad. What if the number of products to be sold is massive? That is when inventory management software comes into picture.
What are inventory management software?
•It is a computer based tracking system that keeps count of the number of products available on shelf for sale.
•Every time a transaction occurs, the inventory software comes into action.
•It immediately deducts the number of items sold from the main list.
•If more products are brought in or stocks are refilled, this is also updated using this software.
Why are they required?
The inventory management software are required for the following purposes:
•Order management: Every time a product reaches a specific threshold, the software can be programmed to notify the store manager to order for a stock refill.
•Asset Tracking: When the product is sold or shipped, it can be tracked via its tag or barcode. RFID tracking mechanisms are also put in place these days.
•Service management: The companies that provide services instead of products are also benefited. They can track the raw materials etc that they used up to deliver that service. This ensures proper pricing of the service.
•Product Identification: Just as product tracking, this too works on barcode or RFID technology.
•Inventory Optimization: From the amount of products sold, the trend can be observed and made use of to increase the sales. For example, if over the period of a year, product A has sold 70 times more than product B, while ordering for a restock, more units of product A will be ordered as compared to product B.
Advantages of Inventory Management Software:
•Insight into trends
•Less consumption of manual labour
The inventory management software works in tandem with the Point of Sales system and is often an integral part of the same. Thus, the overall control over the business can be improved multi-fold but putting these two into place. Several online providers are available to source these software from at a good rate.
Mohit Singh has been an expert in the study and implementation of inventory management software. He has also designed various inventory software and has travelled globally to analyse the trends on application of this software.