Automated inventory management system is a software system that systematically controls your product data so that the inventory levels can be accurately tracked and provided in real time. It adds edits, deletes and transfers your product data in this regard.
Automated inventory management systems play a key role in increasing your profitability and in managing your inventory. It provides you with accurate, real time inventory levels. Whenever the necessity arises, updated inventory levels are immediately available.
In conjunction with an automated inventory management system, barcoding, mobile features , RFID systems etc further increases the precision rate of how your inventory is managed and accounted for.
With such measures, you can be aware of the inner workings of your business very clearly.
The relevance of an automated inventory management system is all around you
If you ask any professionals involved in inventory management, you will get a barrage of challenges (and opportunities) on asset management and how they are expanding along with an equally growing digital world.
The corporate world is evolving so fast that you will inevitably face surprises and unexpected twists. But at least, asset management is one area where you can (to an extent) control these unknown changes through a powerful automated inventory management system.
Your product is one of your most important assets and it is paramount that you manage it effectively. Being properly prepared is equally a very important asset too!
There are plenty of advantages for using an automated inventory management system. Some of them might be logical and known to you while some of them could surprise you. Please read on:
Advantages of an automated inventory management system
Order-cancellations are reduced:
A proper automated inventory management system keeps you in track of your inventory requirements. You are aware of the supplier’s inventory and are able to facilitate your new orders accordingly. This reduces the number of orders that you may cancel when you do not have such automated systems in order and are less aware of your inventory status.
Data accuracy is increased
This is a no-brainer as manual calculations are more error-prone than an automated inventory management system.
Immediate product updates
Unlike using traditional methods, under an automated process, the latest updates are immediately available in real-time. This saves a lot of time and reduces confusion.
Better management of products
Automated inventory system groups products using different classifications including by sale, category, season etc. It can also set these groups up properly so as to sell these products through an online channel accordingly in an accurate manner. Even several variants of a single product can be accurately managed using this system.
Efficient Inventory planning
Since the automated inventory system tracks the inventory accurately, notifications can be set up to order products or move products according to the current status. The complex concept of a just-in-time process is highly simplified due to this. At no time will you have too much or too little stock.
Superior management insights and forecasting
As a direct consequence of the advantages above, demand forecasting and getting valuable insights on how your inventory is moving is made easier. This helps you to accurately plan your future orders, sales forecasting, launch special campaigns and add a much-needed certainty to your marketing strategy.
Stronger capacity to compete
Your handling costs, costs related to logistics etc are considerably reduced when an automated inventory system is in place. This automatically translates to you to being in a capacity to compete better with your competitors.
Growth is uninhibited
When your business grows from a smaller size to a large size, you could face some confusion with the sudden increase in the inventory. But with an automated inventory management system, complexities that could possibly arise due to a sudden expansion are removed. The system is ready to handle such fluctuations from the beginning.
Inventory is synchronized:
This is a relevant advantage that has grown in prominence in the recent years due to the boom in digital marketing. Businesses that sell their products on multiple platforms such as e-commerce platforms (eBay, Amazon etc)can use their automated inventory management system to synchronize their inventory through these and all other digital channels that they might be using. The inventory gets updated on all those channels automatically once a sale is completed. You will not have to log in to all those channels to update the stock or get details. Such seamless linking and managing creates more efficiency and saves a lot of time.
Conclusion – Implementing an automated inventory management system is a no-brainer!
There is no doubt that a powerful automated inventory management system will make your business venture much more successful than the traditional methods across all platforms.
Though there is an initial investment cost, in the long run it saves much more than you have spent. One should never forget that there is always a cost to achieving high-service levels! (hence a worthwhile cost at that).
With an automated inventory management system, you are better in forecasting, tracking and managing your inventory.
It provides you with insights to identify areas where improvements can be made.
The right automated inventory management system can effortlessly integrate into your organization, save you time & money while increasing overall efficiency (including improving customer and employee satisfaction simultaneously) and transform you into a great decision maker.