Inventory management helps make improvements whilst boosting production. Due to the shifting nature of inventory, management tasks are essential. The management of inventory impacts various business operations. Including daily sales, returns, and unexpected losses. An advanced system increases sales and improves operations. Whilst also reducing costs. Finding the right solution is important. Especially with demand for warehouse space growing by over 200% in the UK.
Asset-rich businesses will benefit most from inventory management tools. Especially those wanting to streamline maintenance. Whilst maintaining the lifespan of mission-critical assets. The key is to select the right system that matches your requirements.
Increasing Visibility of Assets
Identifying your inventory assets enables accurate measurement and tracking. A key factor for this is to increase visibility. Especially when it comes to the inventory in your warehouse. Greater visibility allows you to improve the speed and effectiveness of strategic decision-making.
Having complete inventory visibility is a challenging task. But, it can result in huge gains for asset-heavy businesses. This makes the choice of inventory management software essential. UK retailers, for example, average at over 35% of full inventory visibility. With a constant need to improve, retailers can look to inventory management software to help.
Source: statista – 2020 global industry professionals survey about the most important inventory management technologies invested in
There are several types of inventory that need monitoring and tracking. These include finished goods, raw materials, and service inventory. As well as work-in-progress, and cycle inventory. Referred to as stock, in accounting terms inventory is considered an asset.
With several aspects to consider, having a refined inventory management system is key. But gaining visibility of inventory assets is simpler than it was. Thanks to tools like data-led analysis and predictive analytics. Not to mention IoT technology. Data-led technology helps to leverage inventory visibility. Resulting in benefits such as:
Reliable Reporting, Forecasting, and Planning
Knowing the location and condition of assets improves decision-making.
Efficient Task Management
Well maintained inventories lead to improvements in strategic decisions. As well as impacting operational and financial goals.
Increased Customer Satisfaction
Meeting customers’ expectations lead to an increase in long-term profits.
Tracking Inventory in Real-Time Throughout the Workplace
Real-time inventory tracking enables workplaces to run smoother. As assets continuously move around the workplace, real-time asset tracking is important. It relieves the burden of spreadsheet management and data entry. As well as reducing the time required to handle such tasks.
Real-time updates improve inventory visibility. As well as help to stay on track of aspects such as:
- Item status – for example, ‘on hold’, ‘active’, and ‘rejected’
- Financial, logistics, and inventory planning
- Current levels, trends, forecasts, and projections
- Predicting bottlenecks in inventory workflows
- Supply chain optimisation
How Asset Management Software Impacts Inventory Management
The emergence of cloud computing has increased centralised working systems. Also referred to as a ‘single source of truth’. Holding a single archive for inventory reduces spreadsheet duplication. It also enables better real-time reporting.
Asset management provides an end-to-end view of all departments. From supply chain to purchase, all decision-making tasks can improve. Data-driven approaches have far-reaching impacts on all aspects of a business.
For example, data removes the need for manual approaches. Whilst forming the basis for automation. Automated workflows driven by analysis allows teams to take appropriate action at the right time. Enabling asset managers to optimise results.
Asset Management Software uses data to highlight irregularities or emerging problems. With close monitoring of systems, a fast and appropriate response will save money and time.
Key Benefits of Inventory Management
As a critical part of any business, inventory management has significant benefits. Effecting both short and long-term goals. Benefits include:
Improved Inventory Management Accuracy
Knowing what’s in stock enables companies to better-meet demand for goods. Reports suggest improved accuracy increases sales by up to 8%.
Surplus or insufficient stock leads to extra costs. This can leave companies more exposed to financial concerns. Reducing ghost assets can also help cut stock costs.
Improved Cash Flow
Accurate stock and asset numbers enable predictable forecasting.
Happy customers will be more loyal when companies meet expectations. Especially when it comes to delivery, service, and quality.
Boosted Inventory Management & Output
An automated inventory management system helps reduce errors. As well as free up time for staff to work on other projects.