Inventory System Best Practices
An Essential Guide to Purchasing an Inventory System
Inventory System Best Practices
Buying an Inventory System is an investment, so it is important to research, plan, and do your due diligence upfront to ensure the system you choose fits your needs today and in the future. In this page, we will provide you with everything you’ll need to know when looking for the best inventory solution.
You probably need an Inventory System if your organization
- Constantly receives new inventory
- Has to issue or give out inventory to multiple locations.
- Needs to move inventory from one location to another
- Stocks inventory or raw materials in a warehouse, stockroom or supply room
Common Mistakes You Make Without an Inventory Management Tool
Unknown Inventory Levels
Being unaware of your inventory levels has a large negative impact on supply chains. Companies should make sure they always have full visibility of their inventory, to know when stock needs to be replenished.
Lost In Many Papers/Excel Sheets
Tracking your inventory on excel or on paper is time consuming, error-inducing, and will not yield effective results long term.
Constant Overstocking Scenarios
When you order too much inventory, it is generally regarded as bad for businesses as it turns into a deadstock and can result in a major financial set-back. Deadstock can
depreciate or expire quickly so it is important to find the optimal amount of inventory.
Regular Understocking Occurrences
Having too little product on hand can have far-reaching consequences for your business. Ultimately, understocking means you risk having to pay extra to expedite shipments or pay workers overtime for orders that require last-minute work
Importance of a Live Demonstration
A live demonstration is important for any company that is searching for an Inventory System. In the call, a representative from the vendor’s company outlines how to use the system, most popular features, and answer any questions that you might have. The best way to prepare for a live demonstration is to have your needs in mind. Ask yourself these questions:
What do I need to track? What are my needs in an inventory system? Why do I want an inventory system? How can I use this to provide excellent customer service?
Checklist of Inventory Features
Adjust Inventory
To adjust inventory count without the hassle of rescanning your inventory.
Inventory Alerts
To easily notify designated personnel on important shifts in Inventory-related processes, such as low inventory levels.
Forecast Inventory
To configure Security Levels and user access rights for a secure and effective Inventory Management System.
Adjust Inventory
To predict/estimate future needs based on historical inventory data, for enhanced inventory replenishments processes.
Reports and Analytics
To access analytical graphs, charts, and reports on inventory-related data.
Inventory Min/Max Quantities Feature
To improve inventory replenishment, set configurable minimum and maximum inventory levels. Minimum and maximum levels can also be set for the location or site level.
Inventory Order Management Feature
To manage purchase and sales orders easily and effectively. This includes a robust approval process for both purchase orders and sales orders.
Inventory Requestor Feature:
To browse internal available inventory items for ordering (Designed to be used by all the organizational employees). This has an entirely separate interface dedicated to these users.
Purchasing an Inventory System
After taking the time to research, participate in live demonstrations, and compare software solutions, you hopefully have found the best inventory software that fits the needs of your organization. Once ready to purchase the solution, it is important to participate in trainings provided by your vendor to ensure you are implementing the system correctly and utilizing the features available. From there, you’ll be able to save time and manage your inventory easily even for multi-location requests.
