How Inventory Management Can Save 20% On Shipping Time?
Inventory management allows entrepreneurs to track their merchandise from suppliers to warehouses in a systematic way. This blog shares the intricate details on successfully managing the inventories.
What Is Inventory Management?
Inventory management is a process to specify the shape and percentage of stock merchandise. It is an essential tool for immaculately stocking goods at a warehouse, in an office, or in the supply chain. The process involves identifying goods, keeping a track, and regulating their flow in and out of an establishment. With the advancement in technology, today businesses depend on inventory management software to keep a track of their supplies in warehouses, chemical processing factories, and points of sale, ecommerce stores, Supermarkets, and ‘Mom & Pop’ shops.
How Does It Work?
The inventory system management involves identifying each item with a bar code or SKU, which also serves as a tracking device during sales and shipping. It also involves maintaining the database of the inventory flow and cycle and records the process flow of the goods. This system helps to keep a track of products and their availability – “in stock” and “out-of-stock,” and assures quality service at any points of sale.
Manufacturers in the automotive, publication, apparel and IT industries actively utilize an inventory management system to handle their supply of raw materials (scraps). Supplies are identified as raw materials, work in progress, or finished goods, or goods for sale. This process streamlines the manufacturing and production processes and maintains a regular, simpler pace of work for the staff.
Why Inventory Management Is Essential?
It Keeps the Workflow Consistent
An inventory management process keeps the workflow at a consistent pace, vital to the production cycle. In the case of a warehouse inventory management, manufacturers are able to get a “lead time” on the inventories, from the moment they leave the supplier’s premises to the time the raw materials are assembled into finished merchandise. In economies, where bulk purchase is highly valued, inventory management software is prized priceless among wholesale retailers. This is also useful for retailers that hold “new old stock,” i.e., items that have been manufactured long ago, but have never been sold.
It Keeps a Track of Sales
Inventory management software is handy for warehouses, wholesale markets, and small businesses. The software keeps a database of all items and maintains a record of sold and pending items in a given period. Since the database can be updated in real time, tracking and labor management are much easier. Workers can also locate and distribute inventory items more easily. This way, companies avoid suffering lost sales due to items that were left out.
It Keeps a Track of Items Shelf life
Typically, older items need to be sold before the newer ones are manufactured. An effective inventory management system can make packing and shipping in warehouses more efficient, enabling businesses to meet sales demands better. This also avoids the hassle of coping with products that may have become obsolete or even spoiled in storage.
It Helps Cut Overhead Expense
Other than this, there are many other advantages of a good inventory management system. You can do cut your overhead expenses in managing a count team, as the job can easily be handled by a single person armed with a handheld scanner. The count is automatically entered onto the numeric keyboard, which is connected to a computer.
It Helps You Avoid Mistakes
From a central database stored on the computer, the counts can be quickly downloaded, thus saving the need for manual input. This takes much less time than doing the count manually and no mistakes can be made. There are no columns to write information, thus that mistake is eliminated, and quantities and product numbers cannot be mistaken when they are recorded by the scanner. Of course, there is the cost of buying or renting the scanners, computing hardware and software, and printing the barcodes. However, most business owners would agree that it is well worth the cost.
Even a slightest error in writing the inventory costs a great deal of time and effort to find and correct the mistake, when the staff could be better employed doing other productive chores. A mismanaged inventory management system causes several hours of frustration and extra work for your staff. Thus, a new way of efficiently managing inventory is needed. One that automates the tasks involved, such as, counting different products and entering the data. However, you may think that adding a barcode label to each product would be time consuming and often impossible for small products, especially those that do not require packaging. You can easily resolve by placing a bar code label on each stocking bin.