What Is Inventory Management?
Inventory management system in India is the software of organising the acquisition, holding, and selling of stock—whether it be raw materials, components, or finished goods—to ensure that the right sort and quantity of stock are available without holding onto too much stock and tying up capital. When done correctly, inventory management can help firms save money.
What Is Inventory Management's Primary Goal?
The basic objective of inventory management is to ensure that there are enough goods or materials on hand to meet demand without producing too much inventory.
What Benefits Does Inventory Management for SME’s Offer?
Accurate inventory management for SMEs’ is essential to running a profitable commodities firm. Regular stock monitoring can help avoid mistakes with stocks and other problems. Effective inventory management has the following benefits:
- Better Inventory Accuracy: When you have efficient goods control, you know exactly what is on hand and only order the amount of inventory needed to meet demand.
- Reduced Risk of Overselling: You may prevent overselling products by keeping track of what is in stock and what is on backorder.
- Savings: Until it is sold, stock costs money. Carrying expenses include of labour wages, storage, handling, and transportation costs. Theft, natural disasters, or obsolescence are some reasons why inventory can be lost.
- Avoiding Stockouts and Excess Stock: With better planning and administration, a business can minimise the number of days an item is out of stock, if any, and avoid keeping too much inventory. In our “Essential Guide to Inventory Control,” you may find more information on preventing stockouts.
- Greater Insights: Stock control and inventory tracking make it easier to track recalled products, keep track of sales trends, and keep an eye on expiration dates.
- Better Vendor and Supplier Relationships: Inventory management also shows which products sell well and in what amounts. Use that knowledge as leverage to negotiate better terms and tariffs with suppliers.
- More Productivity: Productivity is increased because efficient inventory management systems save time that could be used for other duties.
- Profits Increase: Since supply and demand are better understood, increased inventory turnover leads to higher profits.
- An Improved Warehouse: Labor expenses are reduced and order fulfilment is sped up in an effective warehouse with things arranged based on demand, which items are frequently sold together, and other reasons.
- Better Customer Experience: Prompt order delivery is a sign of loyal customers.
Benefits of Integrated ERP and Inventory Management System in India
By using inventory management for SMEs’ strategies, you can reduce costs while keeping a precise stock count. However, you could enjoy added benefits if you integrate an ERP system with inventory management functions. A system like this in place allows you to:
- Recognize Inventory Levels Throughout the Company: ERP systems can provide a thorough overview of all orders placed across all departments, from sales to accounting to fulfilment. When stock needs to be refilled, the ability to buy in bulk and centralise purchases reduces duplication. There are a tonne of extra benefits when your accounting and back-office processes are integrated with your inventory software.
- Streamline Manual Processes: Barcode and RFID scanning can expedite the taking of inventories, receiving orders, and fulfilling orders. By using software, staff are relieved of repetitive tasks and human entry errors are reduced.
- Greater Visibility with Real-Time Data:Using the right inventory management system for SMEs’, you may access real-time information on all SKUs across all sites. It will send this information to all devices regardless of your location.
- Improved Forecasting: Improved forecasting is possible because to software that manages data analytics and collection. Also, you can improve your stock predictions by understanding trends.
- Data-Driven Decision Making: Make data-driven stock decisions by utilising the inventory management software’s analytics features. To save money, lower carrying expenses and inventories.
- Support Uninterrupted Production: By foreseeing demand as well as lead time, you can ensure that production never experiences a shortage.
Support Uninterrupted Production: By foreseeing demand as well as lead time, you can ensure that production never experiences a shortage.
- Optimize Every Item: A powerful Inventory management system in India aids in maintaining the ideal stock mix, amounts, and carrying costs. With its guidance, you can be confident that you’ll always have the appropriate amount on hand.
- As Your Business Expands, Scale Up Your Inventory: 1,000 SKUs spread over 15 facilities cannot be accurately tracked manually. That will be handled for you by inventory management software.
- Maintain Generally Accepted Accounting Principles (GAAP) Compliance: For financial transparency, stock prices must be calculated correctly.
- In Recalls, Increase Product Visibility: Managers can track products by date and location using serial number or lot records using digital systems.