Why it’s Important to Manage Your Inventory [Smart Inventory]

Here’s an example of a scenario you can probably relate to: Imagine, you’ve been trying to find the perfect birthday present to surprise your friend with. You finally find the perfect item online, complete the purchase, and have it sent off to your friend just in time for their birthday. Success! A few days later you get an email saying that the item you order is out of stock and can no longer be fulfilled. Ugh! Now, it’s too late to get anything shipped off to your friend in time for their birthday and you vow to never support that business again.

How do companies let this happen? A common reason this happens is because companies do not track and update their inventory in real time. Since the inventory is not tracked accurately, the website is not updated when an item is out of stock. According to Zippia, 43% of small businesses don’t track their inventory. Tracking your inventory is essential to running a successful ecommerce business. It is important to monitor the levels of inventory in order to create a good experience for your customers. You don’t want to create the scenario described above for your customers!

What is inventory management?

Inventory management refers to the process of sourcing, selling, storing, and distributing inventory. Tracking inventory throughout the entire process is extremely beneficial for your business.

Inventory management can take place on the cloud. What does this mean? The inventory cloud refers to a specific type of inventory management system that allows you to track and manage your inventory remotely using a cloud-based warehouse management software system. Cloud inventory is more accessible and may be more convenient for companies that do not physically have their inventory present. Inventory cloud allows for real-time updates on inventory status from any location.

How does software help me manage my inventory?

In order to effectively manage your inventory, the right software system is key. As demonstrated in the picture below, tablets and scanners are used to seamlessly streamline every step of the picking and packing process. The software directs and logs every move in the fulfillment process, keeping track of key metrics every step of the way. Key metrics help you to manage the supply chain orders and ensure you have the inventory you need. Warehouse software systems increase productivity and efficiency, while decreasing training times and cost.

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Benefits of Using Software to Manage Inventory

Automatic, Real-Time Updates

Imagine how tedious it could be updating inventory manually on a spreadsheet or document. Every time an item is picked, a team member has to manually update the inventory count. In the middle of a busy day, you can imagine how easy it is to forget to update or to make a mistake! This is where inventory software is your best friend. Using a cloud-based system, inventory counts will automatically update when you use a scanner and iPad system. There’s no need to spend extra time documenting inventory when your smart inventory system does it automatically and immediately for you.

Faster Employee Training Times

With smart inventory management systems, there’s no need to train your employees to use spreadsheets and other methods to track inventory manually. The software systems will reduce training times by clearly directing employees in their picking and packing methods. There is no need for employees to memorize each inventory item, the smart inventory system will take care of that and the employee can focus on maximizing their fulfillment efficiency.

Reduced Error

Instead of relying on a human to remember to input numbers into a spreadsheet, the system will automatically do this for you. This reduces error and leads to happier customers. When a customer is shipped the wrong item, it is a headache for both the customer and the company. These errors lead to unhappy customers and wasted expenses. Prevent these errors by leaving the tracking up to an advanced technology system.

Increased efficiency

Here’s a formula for you: Increased fulfillment efficiency + Increased order fulfillment rates = happier customers & increased revenue. Simple as that! By creating a more efficient warehouse, you can increase fulfillment rates. Faster fulfillment rates lead to happier customers who are getting accurate orders fast and increased revenue.

In conclusion

Hopefully this article helps you to understand the importance of smart inventory management software systems. Tracking inventory is crucial, and software systems help take the headache out of the equation.

When considering the right warehouse management software for you, consider WarehouseOS. WarehouseOS has helped leading brands like Minky Couture, Bohme, Roolee, and Zyia Active to name a few. WarehouseOS offers a free consultation with professionals to help you better understand your warehouse and create a more efficient process. Reach out to us today to schedule your free consultation and see if we are the best fit for you.