Inventory management helps small to large businesses to keep track of the number of products they have. Therefore, it is to ensure that there is always enough stock to satisfy customer orders, proper warning of running low stock and restock items to keep selling in order to maintain and handle your inventory properly.
There are several inventory management systems, and choosing the appropriate one can lead to success in having the right products in the right quantity, place, time, and cost.
In this post, learn about the importance and benefits of inventory management, and few ways to apply this practice in your workplace.
1. What is Inventory Management?
Inventory management refers to the process of keeping track of and controlling your business' inventory while it is purchased, manufactured, stored, and utilized. It controls the entire flow of products, from purchase to sales, ensuring that the correct amount of items is always available in the right location at the right time.
2. Why is Inventory Management Important?
Inventory is each company's most important asset. Therefore, a lack of inventory in the location is directly related to customer trust. However, there is a risk of loss or damage when storing too much stock than necessary. As a result, finding the right balance between overstocking (having too much product on hand) and understocking is crucial.
Inventory management helps you solve all these problems, it allows you to have accurate orders, better inventory planning, increase customer satisfaction, and more. Good inventory management saves time and money and gives a better situation for your company. In other words, it enables effective budgeting and operational cost which is a key aspect in leading and managing organizations. The main core of all business is by knowing what you have, what's in your warehouse, and how to successfully manage the inventory.
3. Benefits of Inventory Management
Inventory management has two main benefits: it assures that you can fulfill incoming or open orders and it increases profits. Inventory control also involves:
- Save Money
Overstocking might result in wasteful expenditure as all stocks are equivalent to money costs. Therefore, stock control is critical since it allows you to keep your holding stock costs to a minimum. Furthermore, carrying costs such as storage fees, shipping expenses, insurances, and employees' salaries may reduce and affect your profits. In conclusion, inventory management helps you to save money by limiting your stocks in an appropriate quantity.
- Improve Inventory Accuracy
Good inventory management is crucial as it ensures the accuracy of product orders, status, and tracking. It also allows you to identify the exact amount of goods you need on hand. Moreover, it helps to avoid having low stocks levels and maintain just enough stock in the warehouse.
- Increase Customers Satisfaction
Running out of stock regularly fails to meet customer expectations which gives a negative impression on your company. Therefore, this might result in customer losses and, eventually, an unsuccessful business. On the other hand, effective inventory management helps businesses to gain customer trust by ensuring they receive the items they want without waiting. It keeps on tracking stocks in the right way and protects from damaged or incorrect goods being shipped to customers. This leads to improving customer experience, protects against difficulties like refunds, and increases loyal customers.
How to Choose an Inventory Management System?
Choosing the right inventory management system helps to make good purchasing decisions and to keep inventory costs low while delivering on customer expectations. Control your stock more effectively and keep less inventory on hand by using an inventory system. All key features such as item register, stock in & out, history, and more are provided in BoxHero. No more wasting time, try it now! BoxHero is simple and convenient, it has only the necessities for stock control. Start errorless inventory management with BoxHero's various smart features in real-time on your mobile or PC.
Easily Manage your Inventory with BoxHero.
BoxHero supports features that are ideal for managing inventory, such as:
Organize products by categorizing them according to your needs.
Check your inventory status of reordering with Analysis feature.
Identify item's low stock and view current stock status to maintain appropriate inventory management.
Generate, scan, and print barcodes can all be processed quickly.
Easy to create purchase orders as well as invoice statements and analyze sales.
BoxHero is a cloud-based inventory management system that allows to create and share transaction with your team anywhere, anytime.
Having a hard time managing your inventory? Try BoxHero now.
BoxHero is an easy inventory management solution for everyone.
BoxHero's various smart features suit all industries and businesses.
Start inventorying right now with BoxHero!