The Introduction to Inventory Management
You’ve heard it time-and-time again: a healthy business requires Inventory Management! Though it may be redundant, the statement remains true today. Think about your business! Can you imagine completing a sale, only to find yourself scrambling for inventory? Forcing your sales team to explain to the customer there wasn’t enough to fill the order. You are delivering business to your competitor on a silver platter!
Luckily, there is a way to avoid this nightmare. Implement an Inventory System that works for you!
What is Inventory Management?
To better understand the importance of inventory management, it is best to know what it entails. Inventory Management is the process of supervising the non-capitalized assets and stock within a business. Depending on the business, inventory management needs may differ.
Large & Enterprise Level Businesses
The larger the business, the more complex their needs. If the business is an enterprise, inventory management requirements may include multiple locations, various products, and services, as well as a significant number of employees.
Small – Mid Sized Businesses
Many small businesses are brick-and-mortar storefronts. Their operations are simple, purchase, store and resell inventory onsite. If the inventory sells elsewhere, small businesses may pack-and-ship items as well.
Regardless of size, the goal of inventory management remains the same: to provide accountability, accessibility, and transparency of stock inventory.
Why do I need Inventory Management?
The importance of inventory management is apparent through sales and daily operations. Businesses require appropriate levels of stock inventory to eliminate stock-outs, write-offs, and unhappy customers. In order to efficiently run the business, a balance needs to be achieved (think supply and demand). For instance, failure to properly track your inventory can lead to a shortage, inhibiting sales (sorry we are out of cheese, so how about a hamburger instead). At the same time an overstock, having too much of a single item, can lead to unnecessary storage costs or waste (we have to eat all this cheese or throw it away).
To illustrate my point, think of the price of cheese. Imagine a dumpster filled with cheese. Now, replace the cheese with money. Both of these scenarios, cheesy as they may be, will cost your business valuable resources – resources that can be more effectively spent elsewhere.
Exploring Inventory Management Solutions
Now, it is clear that inventory management is pertinent to the success of a business. But what options do you have to begin implementing it into your businesses’ daily routine?
Small and new businesses often begin by relying on Excel sheets for inventory management. While initially cost-effective, there are a number of issues with Excel. Employees need to manually update the sheets, making the process prone to human error. The errors may go unnoticed until some stock or supplies are significantly impacted, at which point, it is hard to trace back to the origin. Furthermore, Excel sheets do not offer reporting or analytical tools needed for crucial decisions. These faults create unnecessary expenses and outweigh the initial savings!
Many businesses turn to inventory management software allowing them to automate these processes. While there are many inventory systems and asset tracking solutions on the market, they are not equal! With many different industries and specific needs, your business needs an inventory management system that will work for you.
A small to mid-sized business needs an inventory system that will not only help promote growth but will grow with the business as needs change. On the other hand, a large or enterprise-level business needs an inventory system that contains the configurability and scalability to nurture its complex daily operations.
About ASAP System’s Inventory System
Our inventory management solution is a perfect fit for any company’s needs. With our Inventory System and Asset Tracking solution, companies can:
- Configure data fields, required text, and modules designed to best suit the relevant industry
- Update inventory lists quickly and in real-time by scanning BarCodes
- Set up min-max values for stock inventory so that inventory levels are never under or overstocked
- Add on additional features as their needs change and the company grows
- And many more!
While it is hard to imagine one size fits all for your company, our Inventory System and Asset Tracking solution are configurable to meet your requirements. Our Inventory System and Asset Tracking solution help promote growth while growing alongside your company.
Please contact us if you are interested in trying out a no-obligation trial. We would be happy to assist you!