A small business with a single location has a much easier time of managing inventory than a small business with multiple locations or even a medium to large size company with one or more locations.
Knowing where inventory is backing up, where inventory is in short supply, where the product is moving and not moving, as well as understanding the potential inefficiencies in moving inventory between locations is critical for operational and long-term business efficiency and profitability.
Using inventory management software offers small to large businesses the ability to easily track inventory throughout the system. This is a big picture look with tracking of individual products, orders, lots or shipments available in real time and in the granular details needed to make better, more informed decisions.
Effective Ordering
With a customized inventory management software, business managers will have current data for the on-hand stock by location. This is much more effective for ordering than simply knowing the total volume of a particular product ordered and sold.
For seasonal products, this is a critical factor. Low orders will reduce sales potential while high inventory levels at the end of the season will result in a profit loss for the business.
Sales Planning and Management
Planning sales based on demand as well as the availability and price of materials and products is critical for any business. With the use of comprehensive software, the big picture of what is going on across a network of stores or facilities is just a click away.
Scheduling Raw Material Based on Demand
Another important aspect of inventory management software is the ability to order raw materials at the best price and for optimal delivery times. By having the ability to monitor inventory supplies of raw material and place orders optimally rather than simply on a fixed schedule, a business can take advantage of pricing and supply chain factors to keep costs as low as possible.
