Manufacturing plants, retail centers, and warehouses need proper inventory management for maintaining production, fulfilling customer orders, and monitoring inventory levels. Although manual inventory management was regular, electronic inventory management software offered several benefits to the business.
The current market size of the inventory control system is more than $3 Billion in 2022 and is projected to grow at a CAGR of 5% between 2023 and 2032.
Apart from providing multiple organizational benefits and productivity, the system is user-friendly and easy to learn. This blog will explain the various advantages that an inventory system offers to the business.
Define Inventory Management Software
For an organization, inventory management software tracks the inventory and sales over a period. It provides valuable data and organizes the products within the warehouse. This helps the organization in stock management, order filling, and tracking the entire production and sales. Using warehouse inventory management software is simple, requires minimal training, and improves the management of an inventory.Benefits of Inventory Management Software
Here are 9 essential benefits that inventory management software offers in controlling and systemizing the inventory of an organization.
- Accurate Inventory Control – An inventory system helps fill orders and track products. This software monitors every product that enters and exits the company during production, storage, and sales. Many inventory management software in India also contains point-of-sale systems. They process payments and sales and can also integrate with the existing POS system.
Businesses having enhanced inventory software reduce excess inventory costs and develops better relationship between customers and partners.
- Cost Control – Warehouse management software controls overstocking. This reduces incurring extra costs for the company. When the company has accurate inventory information, it can guarantee customer orders and can prevent backorders.
Most companies keep their products in rented or leased warehouses. So, overstocking could cost the company extra. Moreover, if it takes months to clear excess inventory, the storage space could create more costs.
There are other cost-cutting ways that inventory management software in India can enable.
- Automation Features – With automation features businesses can automate certain processes saving effort, time, and cost. With warehouse inventory management software, businesses automate processes to minimize errors, and labor costs, and ensure accurate stock counts. With automation, the business does not have to depend on human labor and makes a more efficient inventory process for the company.
- Improves Productivity – When businesses use an inventory system, they can experience higher production rates. With fewer inventory errors organizations can focus more on product quality at faster rates. This allows them to reallocate labor hours to other projects to improve the business and enhance the efficiency of production.
For instance, if a business has 3 inventory management employees, it can be reduced to 2 by using warehouse inventory management software. This will lower the labor cost. Then, these employees can be allocated a different task to optimize the workforce and improve efficiency.
- Organized Inventory Structure – The inventory system also leverages technology in organizing the inventory structure. Employees can categorize products by shape, size, name, and other vital parameters. An organized inventory structure helps businesses fill orders quickly and accurately and also tracks products efficiently.
For example, a car manufacturer can use an inventory management system by organizing each piece of machinery with name and batch number. This helps the respective department locate the items quickly and track each item from the delivery truck to the finished product.
- Improves Customer Experience – Accurate inventory management can improve customer experience. Companies can fill customer orders quickly and efficiently, which impacts customer satisfaction. This way it solidifies the relationship between the customer and the organization. Thus, inventory management software can create a better brand image and increase profits through better customer service and relationships.
- Enhances Business Relationships – The inventory system also improves business relationships among companies. Accomplishing tasks in less time, generates more orders for the vendors, enhances service quality, and improves the association between two businesses.
Like, a bakery depends on a flout mill for production. The mill would be required to supply adequate materials from the bakery. Warehouse inventory management software supports this process. The employees use the system to manage the inventory and prevent over-ordering and overstocking. Additionally, timely production and efficient warehouse management will improve the delivery of the products back to the bakery, thus reducing the wastage of time.
- Data Visibility – Data is more secure by using an inventory management system. With security, data is visible to the company’s executive team. Greater data visibility enables the management team to make more informed decisions for the organization.
- Better Location Management – Many organizations with larger businesses have more than one warehouse or retail location for storage. Too many warehouses mean more inventories to manage. It becomes effective with warehouse inventory management software. This system can track and manage multiple warehouses. Proper coordination between multiple locations helps cut costs, improves sales processes, and develops the brand image, resulting in more customers.
For example, if one bookstore chain falls short of stock, it must order from another store. The inventory management system performs the process. It notifies the shortage in one store, and informs the items available in another store, creating a timely collaboration between two centers.
WrkPlan Inventory Management System for Accurate Inventory Control
Managing inventory requires utmost accuracy as it supports the entire manufacturing operation for the business. With WrkPlan’s best inventory management software in India, you can perform multiple inventory management functions that reduce cost, increase productivity, and create better relationships between businesses and customers. Enjoy accurate inventory management with the latest automation features with Wrkplan. Visit their official website and sign up to register and schedule a free demo with WrkPlan cloud based ERP software. Its integrated inventory management system will fulfill all your inventory control needs with a very affordable cloud based ERP pricing structure. For more information, you can dial 1-800-120-2449 and connect with one of their representatives.