Inventory is one of the most valuable assets in any business – both on balance plus in terms of keeping the business ticking. It is a challenging task to manage inventory well, but it helps your business generate more profits and deliver more to your customers.
Inventory becomes more important while running an eCommerce business as there are other functional departments too to take care of. It’s surprising that many businesses still manage their inventory manually or without a proper inventory control system.
What is Inventory Control System?
It is a technology solution that tracks and manages a company’s goods through the supply chain. The inventory control system integrates, tracks, and manages inventory purchasing, receiving, shipping, warehousing, and returns into a single system.
The primary objectives of control over inventory are to minimize capital investment in inventory by eliminating excessive stocks and provide a scientific basis for planning of inventory needs. Inventory analysis is an important consideration in inventory control.
Choosing a correct inventory management approach ensures you have the right stock at the right time to fulfill customer demands. An accurate inventory count system helps make your business more profitable by lowering the cost of goods sold and increasing sales as you have the stock on hand to fill orders.
Read about: 5 Tips for Choosing the Right Inventory Tracking Software
Importance of Inventory Control System
Inventory control systems give companies who sell quantifiable goods an accurate means to oversee their stock levels, losses, sales, and much more. It automates the stock counting process to prevent inevitable errors involved if the tasks are done manually.
Now, let’s learn about why inventory control is crucial to the success of your business.
Accountability of Goods
An inventory control system helps you know where the product is and how to find it in the warehouse. You are always aware of the product’s exact location, size, quantity, and remaining inventory. It speeds up your process, saves your time, and prepares a pick list at the earliest.
Overstocking and Understocking
Many companies find trouble in properly stocking their warehouse and end up exhausted while placing a new order. The inventory control system helps you understand the current stock figures and place orders accordingly.
Inventory control system minimizes the scope of overstocking and understocking. It saves investment costs and prevents the blockage of finances using real-time updates.
Tracking Inflow and Outflow of Goods
For the company making numerous sales in a day, it is essential to keep track and monitor the fulfillment of the orders. Plus, making sure they are accurate and going to the right buyer.
The inventory control system tracks and feeds data for every incoming and outgoing merchandise if the product returns. Thus, the system keeps track and records all the product movements.
Optimum Usage of Warehouse Space
Accurate inventory counts help in the proper management of the warehouse. In other words, with reduced overstocking, the warehouse can be utilized more efficiently.
Read about: How do you Design Your Warehouse Space for Maximum Efficiency?
6 signs to check if you need an Inventory Control System
Are you stressing about stock? Don’t know how much stock you have in hand—scared of shrinkage? If you have answered yes to any of the above questions, your business needs an inventory management system.
Below are some of the warning signs signifying you need an inventory control system for your company:
#1. There is too Much Manual Counting
Too much manual counting leads to inaccurate counts, human errors, inefficient supply chains, and dead stock. It prevents you from having the correct data required to make business decisions. Thus, leading to loss of time and money.
So, it’s time to move to a robust inventory control system that helps you effectively manage your process and track your inventory stock in real-time. Then, there is no need to repeatedly check on your stock levels as you can be sure of its accuracy.
#2. Running Out of Stock Frequently
For any business, running out of stock is a big no. You can’t sell something that you don’t have, and you will miss out on the opportunity to sell to your customers. Thus, leading to loss of revenue and damage to brand reputation.
The inventory control system automatically tracks your inventory levels and places orders when they are falling low. It also helps if you have unnecessarily high levels of stock using up your space in the warehouse.
#3. Discrepancies Between Purchased and Sold Stock
While conducting the end-of-year stock check, you make sure that the numbers between what you have purchased and sold add up. You do account for a certain amount of stock shrinkage (spoiled stock, breakages, etc.).
But, if you constantly adjust your anticipated stock to match up what you sold, there is something wrong with your tracking method. The inventory control system helps you figure out the probable discrepancy to come. It enables you to identify threats to shrinkage, including damaged stock, theft, etc., and saves on cash.
#4. Difficulty in Accessing Information across Locations
Whether online or physical, it is very challenging to manage inventory across multiple locations without a robust inventory control system. Team members having difficulty accessing inventory information across locations is a warning sign for you.
It can lead to sunk costs for over-ordering, managing and moving inventory around, or under-ordering. Complete inventory visibility and control is the key to success.
#5. Clipboards and Spreadsheets are not Scalable
Newly developed businesses find a basic spreadsheet sufficient for their requirements and do not invest in an online inventory control system. It is helpful in the early stages of a business, but relying on spreadsheets is not a scalable and sustainable approach.
Manual management is feasible only if you have a handful of products and local customers. Once your business expands, it’s a key sign that you should analyze the suitability of your current inventory management system and upgrade it to an enhanced online inventory control system.
#6. You Need a Single Dashboard View
Many inventory management software programs offer a fully personalized, visual dashboard. An effective dashboard is a game-changer for the business. A robust dashboard provides you with all the insights at a glance, and as they automatically update, you can receive up-to-date information all the time.
Learn about: 5 Key Advantages of Inventory Management Software
Dear Systems Inventory Control Software
In today’s modern, complex world, it is essential to track, store and manage your data while managing a small business. So, when you notice any of the signs mentioned above in your business, then DEAR Systems Inventory Control Software is precisely what you need. It helps you manage inventory and other business operations as per the required cash flow.
DEAR Systems inventory management software consists of a Warehouse Management System that allows real-time monitoring of logistics operations. You can scan product barcodes, print shipping labels, ensure packing accuracy, and improve fill rate via real-time visibility of inventory levels.
Its other features include Write-off functionality for lost or damaged inventory, Drop Shipment, product volume management, synchronization of inventory and physical sales, product cost monitoring, inventory transfer, stock adjustment, and custom picking.
Thus, adopting DEAR Systems inventory management software is an integrated, effective, and easy way of bringing a solid management process to your business.