Inventory management is the systematic process of sourcing in addition to storing and selling raw materials and final products. Through inventory management, a company aims to maintain the right stock at the right levels, cost, and price as a part of the supply chain.
What is software for inventory management?
Depending on the type of products it sells and the channels it uses, inventory management software aids a business in maintaining its stock levels. Although most small-to-medium scale businesses (SMBs) use manual tools to keep track of inventory databases and make decisions about ordering, dedicated inventory management software will make things faster, easier, and more efficient regardless of the size of the business.
Inventory Management Software Canada: Things to Consider before buying
Level of Tracking
One of the primary utilities of inventory management software is to ensure that inventory stock is always in balance with goods received and products sold. This way, the storage costs and holding costs can be minimized, and the sales and profits maximized.
To enable that, you need inventory management software that tells you accurately where the inventory stock is in the supply chain. It will help you make strategic replenishment decisions without leading to wastage or delay. This can be done by feeding barcodes and barcode scanner data to the software and enabling tracking through a unique identifier.
Security & Privacy
Being commercial in nature, data in inventory is sensitive and confidential. For this reason, security should be a primary factor when choosing inventory management software for your company. Company data and customer data should be protected from cyber threats. Provisions should be made for daily backups.
Good inventory management software should offer room for growth. In the beginning, most businesses opt for a low-tier inventory management package. However, as you grow your business and your scope of operations expands, the package should also have to be upgraded, keeping in line with your growth. Always opt for inventory management software that has in-built scalability so that you don’t have to move data or change your system.
Modes of Communication
A good inventory management software will be excellent at passing on information between departments and different nodes of the supply chain. For example, the data will often have to be sent between CRM, ERP, accounting, and other management systems. Before purchasing inventory management software, make sure the sharing happens automatically with few errors. A holistic inventory management software will leave little room for human intervention or human error.
Intuitive inventory management software, incorporated with multi-channel stock management technology, will generate a purchase order based on inventory stock levels saving cost and time for the company.
How can you improve your Stock Control System in Canada?
The following are some ways that can enhance your stock control system:
Inspecting operations regularly for efficient upkeep and keeping track of the warehouse operations more regularly. Make sure it meets the desired standards. If you have a dedicated manager for the warehouse, facilitate effective communication with him and ask him to send a daily checklist. This way, there is a reliable record of what’s moving in your inventory and what’s not.
Place high-selling Items near the shipping area to allow easy access and bring down labour, effort, and, most importantly time. This way, you can focus on efficient tasks to improve the overall stock control system.
Get extra security if you have a large warehouse and prohibit unauthorized people from entering your inventory area. This will minimize the probability of loss and theft cases from the inventory.
One of the key tools you can adopt to improve the stock control system is by educating your staff through training sessions and workshops.
Manual errors can bring down the efficiency of your stock control system to a great extent. How to avoid them? Obviously, through digitization. Reduce paperwork and take care of your inventory through digital mode.
Benefits of Inventory Management Software
Since inventory management consists of a wide range of internal management processes, manually doing these tasks can lead to inaccuracies like data duplicity. However, inventory management software automates the data recording and tracking processes avoiding errors in data calculations.
Productivity & Performance
Analytics and reports from inventory management software will assist you in making intelligent business decisions, thus improving overall productivity and performance.
In the era of online shopping, efficient logistics and stock management are prerequisites to maintaining good customer rapport. It will contribute to client retention and assist in building brand loyalty.
Most of all, good inventory management software helps you cut down costs by avoiding deadstock & overstock situations and the consequent revenue loss.
Data security and privacy can be enhanced a great deal through an efficient inventory management system. While hard copies and physical records are accessible to everyone, that is not the case with digital records. They can be accessed only with prior permission ensuring security at all levels.
Time & Performance
Smart double entry-inventory system
Controlling warehouse operations is time-saving and effective with the help of Odoo's warehouse management software. The smart double-entry inventory system doesn't operate on stock input, output, or transformation but on stock movements between locations. This stocking method is a brilliant idea to enhance warehousing performance and save time.
Prevent Stock-out situations
Avoid running out of goods by automatically tracking stock data and activating purchases when needed. Use Order points and RFQs to keep the refill cycle going.
Track & Trace Every Package
Monitor stock movements with precision
Odoo's unique double-entry inventory system allows tracking and tracing of packages between purchase and sales orders. Find out vacant spaces, missing goods, and execution errors and fix them to keep the supply chain moving.
Oversee the functioning of warehouse operations anytime using real-time reporting dashboards. Design your dashboard according to warehousing priorities and stay active with essential pieces of information.