The Importance of Investing in an Inventory Management System
admin admin | Jan 17, 2019
When dealing in products and supplies, any SME owner or warehouse manager knows that optimising the warehouse is a crucial task. From smoother operations to reducing overstocks, it’s funny how it all starts in streamlining your inventory.
Most of our customers run warehouses and complex inventories in their businesses. From warehouse managers to supply purchasing managers, we understand the challenges and problems they face in their field. Thanks to inventory management systems, warehouse management and optimisation is easier now with the aid of technology. Here are several insights that highlight the importance of investing on an inventory management system.
Maintaining adequate supplies/stocks
Being understocked on products is bad for businesses. Not only does the company lose money from turning away customers, it also builds a bad reputation of not delivering when your customers/clients need you the most.
By having an inventory management system, you know exactly what goes in and out of your warehouse. Have full knowledge on what’s going on with your supplies and monitor how they fly off the shelves. Restock with precise quantities at the right time and your business is golden.
Reduce waste by learning how supplies/products move. Keep an eye on trends and get deeper insights on what’s going on in your industry through an inventory management system. If the products you are sitting on are perishable or tend to get obsolete for a few months, you’re looking at cutting down prices or complete losses in sales. The longer your warehouse holds the products, the higher your maintenance costs get. On top of that, other problems such as storage damage, stolen goods and inefficient use of space are also concerns.
On efficiency and improved data for other aspects of your business
Inventories run on your financial resources. Therefore, every dollar used in running it is a dollar you can’t use in other aspects of your business. Deeply understanding what’s happening in your inventory is the first step in improving operational efficiency that could impact other departments as well.
An inventory management system automates a large chunk of your warehouse essentials. It helps provide transaction details and complete data regarding your inventory flow. By using it, IMS helps you reduce the hurdles in collecting data.
Focus on understanding what, when, why and how stocks/products move in and out of your warehouse. With that knowledge in mind, you get to make better decisions, even in other aspects of your business such as marketing (what market to appeal to), operations (what processes could reduce bottlenecks and inefficiencies), human resources (when to hire extra warehouse staff) and many more.
How would you approach inventory management in your own business? Find out what type of products our clients use alongside their IMS by browsing our shop categories today!