Why Is Using Inventory Management Software Important For Your Business?

It's just a matter of time when you will have a pain great enough to push you into implementing inventory management software. Unless you go out of business, because you haven't used inventory software in your early days.

What your business can do, another business can do better. Even the top 500 Fortune companies have competitors, and one slip up, they get replaced.

To survive, your business operations must run precisely. That means low costs of doing business and high output. Fulfilling customer orders quickly, and providing quality products at affordable prices. You already know the importance of doing this, but running a perfect business is impossible.

Wrong, running a perfect business is possible. To run a perfect business, first thing you need is inventory management software. The following are benefits of using the software with a focus on businesses at early stages of the business lifecycle.

1. Implement Complex Inventory Strategies

To stay ahead of the pack, you must have less operating costs. That means, having a few workers, less handling and storage costs, and no downtime. In inventory management there are strategies that you can take advantage of such as Just-In-Time (JIT). It is a concept where the company keeps the stocks at a minimum.

For instance, if you assemble vehicles, you need to source for components. You can have 1.000 windscreens on stock, but JIT may reduce inventory levels to only 10 items.

Applying such a strategy in normal business operation, is rather complicated. But the right piece of software will automate this for you. It will also help in the implementation of other inventory management strategies such as first in first out (FIFO), ABC analysis, and Economic Order Quantity.

Inventory management software systematizes the process of managing your stock levels. The business can easily run the JIT strategy that works in manufacturing companies or the FIFO suitable for agriculture and food companies. It ensures that the company has minimum (but enough) stock to meet demands. It helps cut down on costs by reducing handling and storage costs. Inventory management software helps you compete with other businesses, and scale your business quickly.

2. Quick Decision Making and Forecasting

Some business owners start using Excel for their inventory management in their early days but it doesn't scale with their business. Inventory Management Software grows with the business.

Making fast decisions on gut feelings is dangerous. Likewise, it is equally treacherous for you to make slow decisions. A successful entrepreneur is one who makes quick, informed decisions in response to the customer's needs and the competitor activities.

The inventory management software records invoices to customers, automatically generates daily reports and allows you to analyze stock quantities by date, month, or year. With just a few clicks you can know who buys your products, total money they have spent on your business and more.

Forecasting is crucial when purchasing stock. What is the demand for a particular product? How much should you order and tie up money in inventory? These complex questions are never easy to answer, but the Inventory management software provides you with insights on the market trends. Your decisions become quick and accurate.

3. Save Valuable Time and Money

Your greatest asset is time. The more time you save, the more efficient you become. The program automates many manual inventory-related activities. It also reduces paperwork which saves you money.

As a business owner, you can use this freedom to focus on marketing, manufacturing new products, and scaling the company. Balances are real-time, and you don't have to calculate data like moving average cost. You can give access to your bookkeeper and streamline accounting in your business.

4. Software Scales with Your Business

Steora smart bench manufacturer switched to Backstore for their inventory management.

Some business owners start using Excel for their inventory management in their early days but it doesn't scale with their business. Inventory Management Software grows with the business. Consider the following case study of smart bench manufacturer.

Include, based in Croatia, is a fast-growing startup that manufactures smart benches, branded Steora. Founded by Ivan Mrvos, the company started the production of the benches back in 2015. As people fell in love with the new concept of a bench with phone charging capabilities, wireless internet, and lighting, the demand grew.

They were using Microsoft word to invoice customers. Keeping track of their inventories was difficult, and occasional errors would arise, plus it was too time-consuming. The solution was automating the process of inventory management through the Backstore inventory management software.

Changes were immediate. They could know if the materials for construction present in their stores were enough to meet new orders, if not the software would alert them. These resulted in enhancing efficiency, and they could spend time scaling the business across borders.

They forecasted that demand would increase, implemented the inventory management software and ensured that they could exploit their growth potential. But, the best part was that they implemented the software solution early, and results were a phenomenon. You can read more about their growth here.

5. Security, Integrity, and Collaboration

A business is like a seed planted in fertile ground. How you prepare the soil influences how the seed will grow. Supposing that the groundwork was perfectly done you will survive the early stage and have rapid growth. You will reach a time when you are not directly involved in managing the inventory.

The inventory management software gives you continuous monitoring of stock levels, sales, purchases, manufacturing orders and other aspects of your inventory business.

All data is securely stored in the cloud. You can control what happens to the data and provide your employees with full or limited access to software. Everyone in the organization can see and use the same data promoting openness and making team collaboration easy. Also, the data can be accessed from any location provided that you have an internet connection.

Why Invest Your Time in Inventory Management Software?

Retailers, wholesale businesses, and manufacturers alike need software solutions to stay in the competition. Implementing the Backstore inventory software, early, means you are aware of your growth potential, and you're prepared.

Small businesses often invest in inventory management software too late - at the point when they have too much work to do, and software becomes a necessity. Don't wait; prepare your ground now.