Why wholesalers should adopt for an Inventory Management System?
What is Inventory Management System?
Inventory management software is a software system for tracking goods, orders, supply, deliveries through the entire business supply chain.
It has the following features:-
- ❏ Inventory forecasting
- ❏ Barcoding
- ❏ Goods tracking
- ❏ Service management
- ❏ Accounting tools
Need And Benefits of Inventory Management System
➔ Inventory Tracking and Product Identification
The reason we avoid long billing lines after shopping is because of the implementation of barcoding system in shopping centers these days. Humans always take longer time than machines, and also the probability of human error is always higher than machine error.
A barcode system consists of hardware like barcode scanners and software a that runs on computers and mobile devices.
Nowadays QR codes or NFC tags are also being used to identify inventory items and Radio-Frequency Identification (RFID), and wireless tracking for product tracking.
Barcoding system does the following things:-
- ✓ increases efficiency
- ✓ saves money and time
- ✓ eliminate data entry errors
Planning and Forecasting the demand for goods
At times it becomes very difficult to plan which good to buy and which one not to buy because the market demand keeps on fluctuating. Catering seasonal demand is very important. The demand of a particular may suddenly rise before the festival or a season. Instead of being unprepared for sudden demand rise, real time analytics, past sales data and analyzing the various trends as per the data can act as very helpful insights for forecasting goods demand.
This helps you avoid situations like:-
- ✓ Understock and overstock
- ✓ Getting stuck with deadstock
- ✓ Avoid disappointing customers
A more organized warehouse which takes care of Inventory
In case of eatables, cosmetic products, health care products it is very important to take care of Expiry dates. Even though clothes have no expiry date, if kept for a long time they usually tend to become worn out and at times become out of fashion.
Inventory Management System takes care of all this. All the information of a particular product is stored on a system. The products need to be sold in FIFO(First In First Out) order. The products that come first need to be sold first.
Improves cash flows
A good system helps wholesale businesses in taking strategic decisions for buying products. A lot of money is saved in avoiding deadstock and preventing wastage of products.
Also while buying products from foreign countries or from distant places, a good forecast of the products needed helps in buying products in bulk. That results in saving transportation costs.
Identify Shrinkage and Slow Moving Products
Barcoding system helps in keeping a count of the products which in turn avoids the loss of products due to theft or any other cause.
As mentioned in one of the above points, using old sales data we can determine which are the slow moving products. Slow moving products are the one that has become out of fashion and are not being sold. So instead of just stocking up, using an inventory management system identify them and sell them off in huge offers and discounts.
Tags: Loss of products, Inventory Management System