Online retail is one of the biggest sectors, and global e-commerce marketing is estimated to hit $6.3 trillion by the end of 2024. The competitive landscape is constantly raising customer expectations.  

Retailers aim to ship the package the same day so it can be delivered the next day for customer satisfaction. It is quickly done through inventory management software. 

According to Mailmodo, at least 20% of all retail sales happen online. Retailers need to be vigilant to ensure stock replenishment and prevent overstocking.  

This blog lists 5 vital reasons for an advanced inventory management solution.  

5 Reasons Why You Need a Top-Notch Inventory Management Software 

Here are the top 5 reasons why, as a retailer, you should get an IMS, or inventory management system: 

1.Optimised Stock Levels 

The primary function of an inventory management solution is to maintain optimal stock levels across all products. It is done by eliminating stockouts, backorders, or deadstock. A closer look at these terms says stockouts happen when the stock level dips so low that you cannot fulfil new orders.  

Backorders are piled orders left behind due to missed sales. These piled orders increase the inventory of stocks that are no longer in demand, resulting in deadstock. 

Efficient inventory management software can calculate the correct number of stocks needed at any time, smoothing warehouse operations. 

2.Simplifies Supply Chain Management 

Smart inventory management solutions can streamline retail store supply chain operations. Businesses can identify sales trends accurately and stock only the amount required to meet customer demand.  

The software helps them gain visibility into product locations in any franchise warehouse. With this data, they track manufacturing, delivery timelines, and potential bottlenecks.  

Retailers can manage shipping delays, low-stock situations, or logistical disruptions and maintain customer transparency.  

3.Cost-Effective 

Inventory management software allows for precise inventory control, reducing the carrying costs of excess inventory and freeing up capital for reinvestment in other areas. 

Forecasting customer demand and stocking accordingly can also save you money on storage. Storage fees are calculated based on the number of units kept, and the higher the number of units, the higher the fees. 

With software, your inventory calculation is accurate, and companies can project accurate inventory costs for the financial year. 

4.Streamlined Order Fulfillment 

IMS is vital for efficient order fulfilment. Integrating inventory software with order systems automates picking, packing, and shipping tasks. 

This helps in minimising errors and labour costs and speeds up order processing.  

Quick order fulfilment also means satisfied customers. As customers are the primary target of any business, maintaining good relations with them is key. We are also customers of some retail brands, and the same-day or next-delivery of products makes us appreciate the retailer.  

5.Strategic Decision Making 

Inventory management software generates data on consumer behaviour, product trends, and operational inefficiencies. Analysing these data helps in informative decision-making. 

Companies will be less likely to incur losses if they have a mock market scenario. Projecting the demand and deciding on product assortment, pricing strategies, and inventory optimisation becomes easier. 

Bottom Line 

Investing in modern inventory management solutions can drive profitability, optimise stock levels, and elevate customer experiences. Quinta understands retailers’ needs, so its robust IMS comprises various modules. 

It has analytics, serialisation, order management, demand forecasting, stock valuation, and return management. Quinta’s inventory management software allows manufacturing, logistics, and retail businesses to maximise their return on investment.