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How To Choose An Inventory Management System For Your Business

Inventory management requires high accuracy. Any errors in tracking, counting, or forecasting could lead to major business loss, inadequate stock levels…

Inventory management requires high accuracy. Any errors in tracking, counting, or forecasting could lead to unwanted purchases, inadequate stock levels, and delays in shipment.

Manual inventory tracking is not perfect as lots of error is made during the use of this method. 

This software streamlines your day-to-day operations and reduces the risk of errors in supply chain processes.

The best inventory software will help you avoid making mistakes and disappointing clients. It will allow you to fulfill orders accurately and on time every time.

What is an Inventory Management System?

An inventory management system is a cooperation of technology, processes, and procedures that support the monitoring and maintenance of stocked items.

It enables wholesalers/retailers to organize and monitor their products regardless of whether finished goods or raw materials; supplied to end-users and vendors.

Vencru can help you manage your stock and avoid wastage of any products. You can keep everything streamlined and always know if you are running low on anything in your inventory.

With Vencru, be sure to get the best inventory management system and a vast array of other features that can help your business. 

Inventory is often one of the company’s most valuable assets. It makes it even more important to have a reliable system for managing inventory, as it’s an essential part of the supply chain.

Here Are Some Questions to Ask Before You Invest in an Inventory Management System

  • What are your business’s challenges?
  • Are you looking for a cloud-based or server-based inventory management system?
  • Is there a policy regarding inventory management?
  • Also, what other features are you looking for to help your business succeed?

What are your business’s challenges?

Assessing your business’s challenges and needs is a place to start when deciding which program is best for you.

Perhaps your inventory management system for projects/enterprise planning system is outdated, or your small business is slowly growing.

Asking questions about your current problems will help you pinpoint your weaknesses and determine the functionality that your inventory software needs.

Are you looking for a cloud-based or server-based inventory management system?

Although cloud deployment is a well-known option, many companies still use on-premise management systems. It is significant to decide whether you would benefit more from a cloud-based or server-based inventory management program when searching for an inventory management program.

Are you looking to have your software and server located on-site or prefer cloud-based software to save capital costs?

You should weigh all options and consider your needs before deciding which is best for you.

Is there a policy regarding inventory management?

Your inventory management policy determines how your products move, how you track costs, and how to avoid losses or shortages.

Examples of a well-defined policy are: Knowing the product cost, lead times, handling requirements, and much more.

What other features are you looking for to help your business succeed?

Software should be affordable and perform what you need – meaning you will want to access it for its scalability and capability as well as quality. It’s important to determine which additional features you need to run your business.

  • In search for ways to track stock with RFID tags (radio-frequency identification), serialization, bar codes, lot control?
  • Are there any industry requirements that you need to meet?

Your team will be scanning barcodes with mobile devices. Maybe you require real-time visibility of your products’ availability or detailed reporting on your inventory across wholesalers and warehouses.

Here Are 8 Inventory Management System Requirements

  • Inventory tracking
  • Barcoding inventory
  • Analytics
  • Perpetual updates
  • Integrations
  • Usability
  • Accessible support
  • Designed to grow

Inventory tracking

To implement an inventory management system, you must be able to track the status of finished products and raw materials within the supply chain.

You can automate inventory tracking with inventory management systems for eCommerce. This will eliminate the need to complete time-consuming and tedious tasks manually.

Many systems generate tracking numbers automatically when they create an invoice or receipt, which saves valuable time and allows you to use your mind power elsewhere.

Automated tracking allows you to engage with customers more effectively by sharing stock information and updates on shipping status.

Barcoding inventory

Barcoding is a popular way to manage and control inventory. Barcode scanning eliminates common data entry errors with manual entry and automates functions that need to communicate with other parts of the inventory management system.

It makes inventory management easier by allowing you to store, organize, and access your data digitally.

Barcode scanners can help you improve your inventory accuracy, speed up stock replenishment and allow paperless documentation.

Check out Vencru’s latest product update on the Barcode scanning system.

Analytics

Analytics are crucial in understanding customer behavior and business performance. However, inventory management solutions must not only collect data but also present the information in a tangible and useful manner.

What’s the point of having data that you don’t understand or use to your advantage?

Most inventory management systems provide pre-defined reports that can be used to provide you with the key metrics you require. Others may allow you to customize reports so you can get unique insights specific to your business.

Perpetual updates

An order management system provides continuous updates, which means the program is constantly updated with the most recent information. The inventory counts, which are updated at all times, show what stock is available.

Another alternative is periodic updates – meaning stock takes are done at specific times (daily/weekly/monthly). These numbers do not reflect what stock was available at the time of the count.

Perpetual updates are preferred. Real-time inventory counts can ensure that out-of-stock items are ordered. It also allows you to monitor the level of your raw materials so you can reorder as needed to meet customer demand.

Integrations

You probably use a variety of management tools to manage your business. Your inventory should be linked to all back-end software you use. If they are not, you will have to manually enter data, which will lead to delays and waste of time and resources.

Integration of inventory management systems with accounting software, warehouse management, and purchasing systems is common.

The integration allows these different apps to communicate with each other via integration, which will make your supply chain more efficient and save you time and money.

Usability

Although cost is an essential factor in purchasing decisions, it’s not enough to overlook the importance of usability. Business owners often overlook this point, but the ease of use of inventory management software will determine how efficient the system is.

It’s not worth the time it takes for your team members to learn the program but it’s important to find a solution that simplifies your processes and makes them less complex. There is a possibility you’d lose time, money, or energy if the learning curve is too steep.

Accessible support

After choosing the inventory management software that will work best for your business, it is crucial to have access to high-quality customer support.

It’s crucial to have someone assist you if you are having trouble finding your purchase transactions or if your team is unsure how to set stock notifications.

If you don’t have access to customer support, issues can go unresolved and cause a bottleneck in your supply chain management. You should expect to receive full support from your vendor including training, warranty, and assistance 24/7.

Designed to grow

You may not have the unlimited cash flow to purchase inventory management software, but while you want a system that works well and within budget, it’s essential to consider the future.

It may be difficult buying a lot of additional features, but you do need something that you can upgrade as your business grows.

Final Takeaway 

Managing your inventory is beneficial to your business. You need an excellent inventory management system that can manage your stocks, avoid wastage of products, and prevent overstocking. 

Are you looking for an inventory management system for your small business? Vencru is the perfect solution for you!

With the help of Vencru, you can manage all your products. It equally provides you with a wide range of excellent features at an affordable price!

Good luck! Make sure you keep an eye out on our blog for many other resources to help ensure the success of your business.

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