Stock management plays a crucial part in streamlining business operations, especially in the retail industry. Whether you operate an online store or a physical store, the fact remains that you need to have your inventory balanced at all times so that you never have too little or too much of each product. As you expand across more sales channels and venture into new markets, your order volumes will increase, making manual inventory management nearly impossible.
Manually adjusting your stock levels on all your selling channels is not only tedious, but it can also result in a lot of human errors. However, with distribution software and stock management systems, this can be a walk in the park. Below are some of the advantages of using inventory management systems.
Avoidance of stock outs and excess stock
Trying to maintain the right balance of your inventory can be a daunting task. Too little stock often leads to a stock-out, while overstocking could increase storage costs and tie up money that could be used to purchase other products. Well, by using ERP software with built-in stock management systems, you can easily track stock levels and identify re-order points for each product. This way, you won't have to guess how much product you have left and will only re-order what you need.
Improved cash flow
Effective stock control methods allows you to spend your money on exactly what your business needs. Instead of spending large sums of money on large quantities of stock at a time, you will spend on the exact amount of stock that is ideal for your business operations. The stock control software calculates re-order points for you through a formula, which helps you order enough of each product.
Offers better product visibility in the event of a recall
Product recalls are sometimes inevitable. As you run your business, you may have to return products to your suppliers for replacements or exchanged. However, the problem with recalls is that it can take a long time to track down affected products if you don't have batch tracking functionality. Without product traceability, resolving these problems with your suppliers becomes very difficult, and this could cause delays. Distribution software provides you with real-time data on your inventory through barcoding, RFID tagging, and serial numbers, allowing you to track its movement in your warehouse and also from one location to another.
Increased efficiency and productivity
One of the main benefits of using stock management software is that it simplifies inventory management. Supply and demand are constantly changing, which means that your stock levels keep fluctuating. Dealing with these changes manually can be very stressful for your employees, which is why you need a stock management system. It reduces the manual process, allowing your workers to focus on other tasks.
Increased customer satisfaction
The benefits of stock control systems extend beyond the organisation itself. The analytics and reports from your stock management system help you ensure that fast-selling products are always in stock, allowing you to fulfil orders on time. Higher visibility of inventory also reduces order inaccuracies, meaning fewer returns and exchanges.
A well-designed distribution and stock management system can be a game-changer for your business. It allows you to track the movement of goods across your business's supply chain, from order placement with your suppliers to delivery to your customers.