The inventory management software space is on pace to reach $3.82 billion between 2023 and 2028, achieving a compound annual growth rate of 6.12%, says Data Bridge Market Research.
Available for businesses of all sizes, inventory management software helps track deliveries, orders, and sales. When used correctly, inventory management software can prevent companies from running out of products their clients need.
Slip-ups on this front can upset customers and lead them to look elsewhere, which will have a negative impact on the revenues and profits of the businesses that let them down. Fortunately, the right software will help prevent this scenario.
Does your business have an inventory management application? If you’re keeping track of your inventory using paper notebooks, you’re missing out on the benefits of inventory management tools. Your competitors are likely using software of this sort–and you need to use it to level the playing field.
If you’re interested in learning more about the benefits of inventory management software and how it can help you run a more efficient and productive operation, keep reading to find out more about five particular reasons your company shouldn’t be without one.
1. Better Product and Ordering Management
The most important benefits of an inventory management system are efficiently filling orders and tracking products. When you implement the right solution, you’ll be able to keep tabs on every product that enters and exits your business during production, storage, and sales. Your company will have greater efficiency since gauging the inventory in real-time can drive down internal inventory management expenses and improve relationships with partners and clients.
Poor inventory control can be a financial nightmare. You don’t have to look far for proof. According to one source, Walmart lost $3 billion in 2013 due to inadequate inventory control. Many companies before and since have been dealt blows due to improper inventory management. If you don’t have an inventory management solution and haven’t looked into costs you might be racking up due to not having one, you probably should take the time to crunch the numbers.
Without the right inventory management solution, your company won’t know which products are stocked and how many of them are stocked. If that sounds like a potential logistical nightmare, it’s because it is. Just like having too much or too little engine oil in your car will cause problems, you won’t want to understock items or overstock items.
On the one hand, having an inadequate supply means not being able to meet demand. On the other hand, having too much product will tie up your money, take up space, and cost you if demand dries up.
2. High Customer Satisfaction Rates
One study shows that 59% of people in the U.S. will back away from a business or product after numerous bad experiences, and 17% say they’ll walk away after a single negative experience. The reality is that customers know they have options in the eCommerce space since they can transact with businesses located virtually anywhere in the world. If they cannot buy products from your company due to inventory issues, they’ll find another company to patronize.
A formidable inventory management system can boost the customer experience exponentially. Your staff members–who’ll be able to check product inventory levels–will be able to fill orders fast. And there isn’t a customer alive who ever complained about getting something on time, let alone sooner than expected. Also, fast and accurate order fulfillment will elevate consumer trust and loyalty and strengthen the company-customer relationship. In this day and age where consumers have so many options, you’ll want to pull out all the stops to retain customers.
3. Better Data Visibility
Another benefit of having an inventory management system is that it’ll give your company’s executive team, department leaders, and other authority figures the information needed to make informed decisions. An inventory management application will make information more visible, and better data visibility means that decision-makers can make better strategic decisions.
When you get the right tool for your business, you’ll be able to generate reports that make it easier to strategize and plan while avoiding errors that could waste time and money.
4. Improved Coordination Between Multiple Offices
Inventory management will take on even greater importance if you have more than one warehouse or retail office. Without an inventory management application in place, coordination will be complex. But the right solution will help you organize and strengthen coordination between the multiple locations. In addition to creating better efficiency and productivity, an inventory management system will help you slash costs, save time, and enhance the sales process.
5. More Productivity
Various studies demonstrate that workers are productive around 60% of the time. That means they’re unproductive a whopping 40% of the time. What can you do to ensure your employees are more productive throughout the day? One way is to give them the tools they need.
If you don’t have a way to keep track of your inventory, you can imagine how much time will be wasted by having to check to see if products are available manually. An inventory management system can lead to better productivity. At the click of a button, your staff members can check inventory levels, have products shipped from one facility to another, place orders to suppliers, and ultimately better serve customers quickly and efficiently.
An inventory management software application is a must if you want to run a more efficient business. It’s hard to maximize your sales strategy if you don’t clearly understand your inventory. You need real-time information to make real-time decisions. An inventory management application will show you what you have, how much you have, which locations the products are located, and when to order more products so that you don’t run out. Doing this manually is inefficient and will render you reactive rather than proactive.
With an inventory management tool and the right techniques which you can find here, you’ll make things easier for your workers and customers. Do your homework to find the right fit since one inventory management tool is not necessarily as good as another.