In today’s highly competitive business environment, not only large, but smaller organizations are also relying on inventory management. It ensures to scale up the businesses, increase productivity considerably and cope up with customers’ needs effectively.
What is Inventory Management?
Inventory management refers to systems and strategies businesses use to make sure that they have appropriate supplies of raw materials for production and products for shipment to customers which ultimately minimizes the inventory carrying costs.
In some cases, there may be some small outlets where online inventory management software is not being used still due to lack of financial resources. They may be still relying on manual means of tracking inventory. However, for businesses with high volume turnover of raw materials, online inventory management systems have emerged as a key component of business strategies that aims at increasing productivity and maintain competitiveness.
Inventory Management as Per Business Analysts
The recent development of online inventory management systems has addressed a wide variety of record keeping issues. As per production and inventory management journal, inventory management software is described as a critical organizational asset helping a company realize important competitive gains in the field of inventory management. Companies making good use of this technology are far better equipped than those companies who are still relying on manual tracking methods. In an article for IIE Solutions, Ronald Pahura wrote that this is impossible to overlook the importance of controlling inventories for businesses to grow.
Online Inventory Management has drastically affected areas like:
- Counting and monitoring of items in inventory
- Recording and retrieval of item storage locations
- Making changes to inventory
- Inventing handling requirements
- Controlling of inventory
- Increasing the efficiency level to a great extent
These changes eventually help in increasing the productivity of business and ensuring inventory is under the control of the company. It helps you to avoid ‘out of stock’ situations which can ultimately result in decreasing face value of the company.
Future of Inventory Management Software
In 1990s, businesses were investing hugely in integrating order and inventory systems intended to keep inventories at a minimum and refill stock quickly. However, now a days, businesses have a wide – variety of system integrating options which can be chosen as per their needs and financial resources. As per latest trend, powerful retailers, these days, ask their suppliers to implement vendor-managed inventory systems. Such arrangements place the accountability of inventory management software on the shoulders of vendors. Under such arrangements, vendors obtain warehouse information from retailer and use it to make restocking decisions for inventory.
There are numerous inventory management applications developed for different platforms that enable even small scale businesses to reap the benefits of inventory management and keeping their inventory under control. In future, it is expected that nearly businesses, small or large will depend on inventory management software to increase their productivity, sales and brand image in the market.
Integration of inventory management software
Integration of Inventory management software with back office systems is crucial. Inventory and back office system integration must be real time, scalable and flexible. For instance, if integration is flexible and scalable, it provides better visibility to your customers and make sure that financial reports are always up to date and accurate. Hence, the integration has to be flexible and transparent. Many times, businesses don’t consider scalability during integration design. But if it is neglected than it can threaten company’s overall success.
Therefore, inventory management plays a crucial role in building efficiency in a company’s work style. Inventory management software is not just considered as need of today’s scenario, but a strategy to scale up the business.
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