Benefits and Challenges of Inventory Management for Warehouses
For any kind of goods-based business, the value of inventory cannot be overstated, which is why inventory management software benefits your longevity and operational efficiency. Inventory management helps the enterprises identify which and how much stock to order at what time. And also, it helps to command the customer’s interest and helps to track inventory from purchase to the sale of goods. It will help you to identify and responds to trends to make sure that there is always sufficient stock to fulfil customer requirements orders and proper warning of a shortage.
The two basic advantages of using inventory management are that it ensures you will be able to fulfil open orders or incoming or and raises profits. Inventory management also:
Understanding stock trends means you see how much of and where you have something in stock so you are better able to use the stock you have. That also offers you to keep limited stock at each location (warehouse, store) as you can pull from anywhere to fulfil orders. And, all of this decreases the amount of stock that goes unsold before it's obsolete and decreases costs tied up in inventory.
Improves Cash Flow:
Suitable inventory management will enable you to spend money on inventory that sells, so money is always moving through the business.
One element always of developing loyal customers is ensuring they receive the items they want without waiting.
Inventory management software automates the data feeding that helps you to decrease human assistance for all the work done by software.
Know customer interest:
When every work is done by the software it becomes easy to track the customer's responsibility for any specific product or service. That helps you to connect with them indirectly to satisfy their need directly.
Challenges of using inventory management software
When you are dealing with any type of software this is very obvious you have to face some challenges also. The primary challenge of inventory management is having too many inventories and even not being able to sell them, and also not having enough inventories to fulfil orders, and not understanding what items you have mentioned in inventory and where they are located. Other obstacles include:
Getting Accurate Stock Details:
If there are tons of inventories at a time you will not able to get accuracy in stock details. If you don’t have accurate stock details, you will not know correctly when you need to refill stock or which stock moves well. And that is the reason sometimes the products are unavailable in stock. It impacts the customer’s impression and maybe the customer gets irritated with this.
Sometimes outdated or manual processes can make work error-prone and it directly impacts slowly down operations.
Changing Customer Demand:
Customers are always being a challenge for any kind of business whether it is a cloth retailer or an automobile retailer. Their tastes and needs change constantly. If your system can’t follow or you can that track the trends, how will you keep updated when your customer's preferences change and why?
Using Warehouse Space Well:
Staff destroys time if like products are tough to locate. Mastering inventory management can help reduce this challenge.
So these are some pros and cons of using Inventory Control Software. We all know that everything comes with some benefits and challenges. We hope, you are convinced with the above-mentioned points. But yes! The decision-makers know very well they need an inventory management system that can grow with them. With automated replenishment and tracking in multiple locations and lot tracing, GravityShift provides cloud-based inventory management solutions that are the perfect fit for businesses of any size. Gravity Shift IO offers a suite of native inventory management and control features, including multiple location planning, warehouse and fulfilment management, automated stock replenishment, lot and serial tracking and cycle counting. You can choose us to manage inventory automatically because you don’t need to tell us now it reduces handling costs and increase cash flow.