WHAT IS INVENTORY MANAGEMENT?

Inventory management software is a software system for tracking inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to avoid product overstock and outages. It is a tool for organizing inventory data that before was generally stored in hard-copy form or in spreadsheets.

Inventory Management Usefulness:

1. Multiple locations: Organize your items by locations and even sub-locations, to track aisle and bin numbers.
2. Multiple currencies: Buy and sell in different currencies, and set your own exchange rates.
3. Multiple Languages: English, Spanish, French, Chinese, and Arabic, or you can even translate to another language yourself.
4. Units of measurement: User multiple units of measurement, e.g., buy by the case, track inventory by the piece, and sell by the dozen.
5. Bills of materials: Automatically assemble finished products from raw materials and have updated the inventory accordingly.
6. Reorder stock: Use the Re-order Stock button to automatically generate purchase orders for your products that are low in stock.
7. Purchase orders: Ensure accuracy by printing or emailing purchase orders with both your own product codes and your vendor’s product codes.
8. Product cost tracking: Can automatically keep track of your product costs, using a moving average if they change.
9. Asset tracking: When a product is in a warehouse or store, it can be tracked via its barcode and/or other tracking criteria, such as serial number, lot number or revision number.
10. Product identification: Barcodes are often the means whereby data on products and orders are inputted into inventory management software. A barcode reader is used to read barcodes and look up information on the products they represent.
11. Cost savings: A company’s inventory represents one of its largest investments, along with its workforce and locations. Inventory management software helps companies cut expenses by minimizing the amount of unnecessary parts and products in storage. It also helps companies keep lost sales to a minimum by having enough stock on hand to meet demand.
12. Increased efficiency: Inventory management software often allows for automation of many inventory-related tasks. For example, software can automatically collect data, conduct calculations, and create records.
13. Updated data: Up-to-date, real-time data on inventory conditions and levels is another advantage inventory management software gives companies. Company executives can usually access the software through a mobile device, laptop or PC to check current inventory numbers. This automatic updating of inventory records allows businesses to make informed decisions.
14. Data security: With the aid of restricted user rights, company managers can allow many employees to assist in inventory management. They can grant employees enough information access to receive products, make orders, transfer products and do other tasks without compromising company security. This can speed up the inventory management process and save managers’ time.
15. Improved Coordination: Cloud inventory programs also allow departments within a company to work together more efficiently. Department A can pull information about Department B’s inventory directly from the software without needing to contact Department B’s staff for the information. This inter-departmental communication also makes it easier to know when to restock and which customer orders have been shipped, etc. Operations can run more smoothly and efficiently, enhancing customer experience. Accurate inventory information can also have a huge impact on a company’s bottom line. It allows you to see where the bottlenecks and workflow issues are – and to calculate break-even points as well as profit margins.
16. Real-time tracking of inventory: For startups and tracking inventory in real time is very important. Not only can business owners track and collect data but also generate reports. At the same time, entrepreneurs can access cloud-based inventory data from a wide range of internet-enabled devices, including smartphones, tablets, laptops, as well as traditional desktop PCs. In addition, users do not have to be inside business premises to use web-based inventory program and can access the inventory software while on the road.