Inventory Management Software is a system that allows companies to track and allocate their stocks across multiple locations, which helps to maintain a proper warehouse management system. It provides information on things like the present location of goods, existing stock levels, or availability issues. It integrates with multiple systems like E-commerce platforms or physical outlets to manage orders effectively. And finally, it also helps you set up an order management process that allows for replenishing stocks if they fall below a certain level.
Inventory vs. Warehouse Management System
Inventory Management System helps track, replenish, and distribute stocks (raw material and finished goods) and forecast future demands. On the other hand, Warehouse Management System keeps an eye on the movement, packing, and placement of stocks within the company’s warehouse. These systems help manage inventory and activity of supplies across storage units and Point-of-sale (POS) outlets.
Features to Look For in an Inventory Management System
Inventory Management Software must-have features like real-time tracking of inventory, transactions (both Physical stores and E-commerce), and automated systems for replenishing stocks.
Integration with POS System
Inventory Software and POS systems must be in sync at all times to allow businesses to track orders both in physical stores and on E-commerce platforms. Doing so helps to give an accurate picture of existing inventory and avoid an incorrect estimation of stocks. Many companies have multiple sales channels and POS outlets. They need Inventory Management System because it acts as a virtual warehouse that provides real-time updates and prevents companies from running out of stock.
Forecasting for Better Decision Making
Inventory Management Software must have a robust forecasting tool that allows companies to use past sales data and historical market trends to have adequate stocks to take care of future orders. It helps management make better decisions in terms of using resources like labor, capital, and time. Proper forecasting helps to reduce excessive storage and is an excellent warehouse management solution. It also prevents stockouts, reduces labor/warehousing costs, and ensures greater efficiency in its production cycle.
Automation for Ordering
No Inventory Management Software is complete without a proper automated reordering facility. Every business forecasts a minimum quantity that they need to maintain with warehouses and POS outlets. They look at market trends, historical sales data, and average lead time for shipping products to make this estimate. Automated reordering helps place an order for more stock when your inventory goes below that minimum quantity, avoiding excessive stocks and preventing hampering your warehouse management systems.
A robust Inventory Management System enables integration across multiple sales channels. The back-end processes of the distribution, promotion, and communication channels integrate to let customers use multiple communication options while purchasing a product, thus improving their overall shopping experience. It helps the company to monitor the performance of both physical stores and E-commerce channels on one platform. It also provides valuable data that augments demand forecasting and inventory planning.