Inventory management is an important part of planning the stock of a company. Overstocking and under-stocking both are risky and inventory management software helps in avoiding these.
Inventories are a part and parcel of every business no matter you are running a manufacturing company or a grocery store. During the older times when such software were not in place people used to record and check inventory levels manually. These traditional practices used to take a lot of time and there was a significant risk of increased theft, mistakes and fraud. However, nowadays inventory management software have taken up the charge and are doing relay well. Among the different types of software these inventory management software are packed with a lot of convenience but at one point when have benefits they also have downsides.
Reasons to Choose Inventory Management Software (i)
Inventory management software are equipped with countless benefits and when it comes to having hands on this software there are a lot of such things which may compel a business to invest in it.
- It gives a business a bird’s eye of the quantity of stock which is present in the warehouse or in the store. This way the hassle of overstocking is eliminated and you don’t end up using your capital in purchase of that excessive stock. On the other hand, when you know the stock count on your tips all the time you can always restock when the levels go down, means you won’t have to say no to your customer when they demand for a particular product.
- If a business is in a manufacturing industry and stocks up raw material for manufacturing they are always aware of the availability of it. In case if at any time raw material is finished the entire production process halts, hence inventory management software will not let that happen and will be there to alarm you when you have low level of raw materials.
- Your financial statements are easy to make, although the presence of it doesn’t eliminate the need of having physical stock counts but still immediate reflection of stock may be taken from the software and shown in your accounts.
- Since you are updated about the stock and its details you can avoid perishing and damages, many products tend to expire and when you maintain limited stocks you can always get over this hassle, because you won’t be buying excessive amount and storing it.
- It provides for a proper tracking of stock, since it moves between the different channels you must have an eye on it all the time, tracking ensures the amount of raw material that goes to production and the finished product that goes to warehouses. Everything is tracked and documented.
- It is one of the most convenient approach of maintain and manage stocks, you don’t have to hire huge teams who would physically count the stock every now and then, everything will be done in a computerized manner and not a needle is capable of being lost without being recorded.
Downsides of Inventory Management Software (ii)
There are a few downsides as well which belong to inventory management software; a few of these have been discussed here.
Software when chosen from a top rated software provider will give you exceptional ease but at the same time will add to your costs. This could be counted as an increased overhead and may trouble you in the longer run because the service charges tend in inflate with time causing problems and since you will be dependent on it by the time you won’t be able to function without it. So, pricing may cause a problem later on when the provider increases the charges.
Risk of Fraud
Fraudulent activities are a part and parcel when everything is accessible on internet. Such software also have your data on cloud and if someone gains an unauthorized access to it your personal information which is sensitive to your business may be used unethically. Moreover, changes may be made manually in the software by employees who have an intention of committing fraud. Hence you cannot completely eliminate chances of fraud using such software.
Technical Faults May Cause Disruptions
It is very common for software to come across technical problems. Same goes for inventory management software as well and you may need to face this hassle which temporarily stops all your inventory management activities. A business cannot afford these halts and need to continuously progress and in case if any updates are missed your entire system may get disrupted.
Implementation of Inventory Management Software
These days almost all the businesses have been dependent on these software and when it comes to assessing the implementation of these at different industries we can have a look at how they function considering the below shared features:
- Businesses like grocery stores maintain a lot of items which may be perishable and they can’t stock beyond a certain limit, using such software they can always be alarmed when a certain product goes below the threshold set hence the problem of being out of stock eliminates.
- Your raw material is your asset if you are in a business of manufacturing and maintain sufficient quality which is balanced of raw materials is also equally important which may be managed easily by way of choosing to use this software.
- Even in service industries like hospitals and dental clinics inventory needs to be maintained be it tissue papers, cleaning supplies or other requirements and inventory management software may offer options to control this as well, so as much as it has a requirement for a manufacturing company same goes for service industry as well.
Inventory levels need a very special attention because your entire business runs on this basis, returning a customer without purchasing anything is a drawback that a business may not afford because it causes a business to lose its reputation. Hence, equipping it with top rated inventory management software should be the first priority in order to make the processes smooth.