Effective Inventory Management Solution for All Business

Effective Inventory Management Solution for All Business

April 16, 2021

Inventory management, as you may know, is one of the stages in the supply chain where the stock of goods along with their quantities are recorded at regular intervals, or before and after receiving and sending out shipments. The ultimate goal of an inventory management system is to keep track of where your inventory is at the given time and the quantity available to maintain the stock. When your inventory is well organized, the rest of your supply-chain management processes will fall into place

In the case of an Inventory Management system, the primary focus is only on the supply chain process. Under this, the information regarding point of sale, the transport channel, and shipping process is necessary to begin and end with. This information can be integrated into the inventory management system, with the help of the organization’s ERP software.

With an ERP system that has an integrated Inventory Management system, you can avoid the risks of any errors like mis-shipments, overstocking, running out of stock, wrong scheduling of pick-ups and drops, and many more. All these errors would not just cost you money but also waste time and labor spent on rectifying the errors made later. An inventory management system is only as powerful as the way it is used in a business structure.

Here you have some effective Inventory Management solutions for any type of business, in all sizes, for increased returns and lesser wastage:

1. Prioritize –

Categorizing your inventory based on the value of the goods, like high-priced, moderately priced, and low-priced goods, as priority groups that can help you keep track of which items need to be ordered more that sell quickly and which contributes more to your business but sells slowly.

2. Tracking Information –

Keeping a record of all product information for the items in your inventory is highly essential. This includes SKUs, barcode data, supplier information, country of origin, designated lot numbers, and costs of goods. Over time, this information can help you track patterns of demand of the goods, based on factors like scarcity and seasonality.

3. Auditing your inventory-

 Occasionally depending on the nature of your business, it is important to analyze the top-selling items. It can be done once a year, monthly weekly, or daily even. However, regardless of how often it is done, it is necessary to cross-check your inventory data with the physical count to ensure it matches.

4. Consistency with suppliers –

If you have an unreliable supplier who is habitually late with their deliveries or  does not deliver complete orders, you may need to take action. Additionally, having a standard process for intake and delivery that everyone follows will help to precisely track discrepancies.

5. Invest in Inventory management software –

For small businesses, managing several functions manually is doable at first. But as your business grows, you would spend more time on your inventory, inevitably and less on your business. Opting for the Best ERP Solution for Small Business that comes with the inventory management feature can make all your tasks easier.

When you think about it, it is well worth the extra time and money to have an Inventory Management System set up for your business. Your business should be able to run like a well-oiled machine, after adapting to a smart inventory management system. You can find proof of improvement and success by comparing the data from before and after implementing the software for your business.

Xmplar’s standard CREST ERP Software Solution, have an inbuilt Inventory Management feature which helps you to. Track real time inventory visibility, helping in improving operational efficiency. Standardize their technical and Non-technical assets. Warehouse optimization. Provision to record and track all type of item classes in the system. Complete control of Stock movement such as receipts, issues, transfers etc thus giving an opportunity to effectively track assets as they move across locations.   Along with several other management and maintenance features, allowing your business to get all necessary functions to help you run your business smoothly, under one system.