Your retail inventory is costing you very high; there are consistent instances of products getting out of stock; there are a lot of obsolete products in your inventory; expenditure of storage is at peak; customers are being shipped wrong products; lead times are getting imbalanced; data entry errors are seen in your databases, and many more – all these are symptoms of poor inventory management. There is one solution to all these issues, and that is, implementation of an inventory management software.
What is inventory management?
Inventory management is the process of procuring, storing, warehousing, processing, and management of raw materials, semi-finished products, and finished items.
What is an inventory management system?
An inventory management system is an efficient process of managing inventory by using inventory management principles coupled with hardware devices and software. It helps retailers track goods across the supply chain.
Businesses must have a competent and effective retail inventory management software to cope with the changes in the demands of customers and ensure smooth operations.
The key lies in proper planning of the purchase, storage, accounting, supply, and distribution of products to avoid overstocking and understocking.
The inventory management system can handle this type of planning, and hence, it is an essential tool for business owners.
Inventory management software tracks the purchase of raw materials, production of semi-finished and finished products, transfer of items between head office and stores, and sale of items that make up the complete product journey.
Key Features of an Retail Inventory Management Software
Tracking of items
Such features are of immense help in the management of supermarkets.
Notifications on stock levels
When the inventory crosses the maximum limit, the inventory management software sends out a notification to the owner. Such a notification helps owners to stop procuring more items and enables them to clear out the extra stock through some promotional offers and discounts and ensure proper inventory control. On the contrary, when the inventory reduces below a threshold limit, the owners are notified of the understock. Such an understocking notification enables the owners to place orders to their vendors as soon as possible to avoid stockouts and dealing with angry customers. Thus, it proves to be an efficient stock management mechanism.
Easy identification of products
Handling the defective stock
An automated inventory management software process ensures that the time to return of the defective stock is significantly reduced. The inventory management software ensures that the status of the defective product is immediately added to every step of the supply chain affected by the return. Effective stock maintenance goes a long way in improving the profitability of the retail business.
Recording procurement orders
inventory valuation as per LIFO, FIFO, and Weighted Average Methods.
The inventory management software has the feature of tracking the delivery of goods from the supplier to the customer. Some inventory management systems also allow the real-time tracking of in-transit goods through RFID technology. It helps in running an efficient material management system.
Physical stock take and stock adjustments
The inventory management software supports taking a physical stock take using barcode/RFID technology and reduces the overall time to complete the stock-taking activity. It also has the feature to record stock shortage and excess.
Generating insightful reports
The inventory management software has the in-built feature of generating reports for the owners to assess and make further decisions. These reports may pertain to sales per product category, sales per item, sales per customer, sales volume per day or month, sales in peak hours, and similar other reports to understand the customer behavior.
Such reports enable the owners to decide new strategies for improving the sales of slow-moving items or offering discounts on overstocked items, etc.
Multilocation and multichannel management
There are possibilities of owners having multiple stores, POS, or warehouses to manage. The inventory management software has an integrated feature of managing the inventory at multiple locations to avoid confusion and save costs. It makes it possible to know the availability of products from the POS system at one store to another store and head office.
Forecasting of demand
The retail inventory management system can have the added feature of storing historical data, and by using that, the business owners can forecast future demand for products.
How to buy inventory software for your retail store?
product movements, and insightful analytic reports to give a better idea of the inventory to the decision-makers. Ari provides a combination of retail software and inventory management software to make both the processes efficient at a lower cost.
Worried about your inventory? Do not fret, just reach out to us, and we will take care of it!