Invented in 1970 by Wm Ohs, inventory management software has helped manufacturing companies in their various tasks related to keeping an eye on inventory levels. Today, inventory management software has been improved over the years. Today, it is considered as one of the most important tools in inventory management. Inventory management is the process of keeping track of all products that are in stock, both on hand and stored. If the company is able to maintain a good inventory control, then the company can be sure of meeting its financial obligations and running smoothly. The main purpose of inventory management software in any type of industry is to maximize the productivity and minimize wastage of resources and increase profits. Follow this link for more info about inventory management software: https://britecheck.com .
A good inventory management software, when used effectively, not only helps in maintaining a comprehensive record of all the inventories, but also allows easy tracking of inventory movements. In this way, manual inventory management systems are rendered unnecessary. Also, it greatly helps in reducing inventory-related costs like man-power required for recording, processing, recording of data, etc. It also helps in controlling the total cost of production, including the costs associated with fixed assets.
One of the main advantages of using inventory management software systems is that it allows the companies to record data in real time and reduce the overall costs involved in warehouse recording, stock assessment, etc. Since the system automatically scans the warehouse and accesses the information based on pre-defined parameters, it reduces the time taken for decision-making. It also reduces warehouse staff's workload and improves their efficiency by eliminating the manual processes involved. In addition, it helps to locate fixed assets and determine their location, availability and quantity, which in turn can help to maximize company revenues.
One of the biggest advantages of managing inventory with the help of inventory management software is that it helps to reduce the cost associated with excess stock-taking. When excess stock is accumulated in a warehouse, it takes a lot of manpower and time to sort out the stocks, pack them and deliver them to the customers. However, by using sophisticated tools and applications, the companies can identify the types of stocks that have a high probability of going bad and can reduce their risks by removing the stock. This results in a substantial saving in the company's logistics costs.
Another advantage of using inventory management software to improve management of inventory is that it leads to improved customer service. When customers can easily access company information and can perform basic tasks like tracking inventory, the process of tracking progress in terms of inventory lead times, inventory levels etc becomes much more convenient for the company as a whole. This leads to increased customer satisfaction, which in turn results in repeat business and enhanced profit margins. The inventory management software used also eliminates the problem of duplicate items, which tend to lead to wastage of resources, increased inventory costs, as well as customer dissatisfaction.
One more advantage is that inventory management software provides an easy interface to employees dealing with raw materials or finished products. This reduces the chances of errors that could lead to discrepancies in the ordering system. In addition to all these advantages, inventory management software also has other benefits. It leads to improved employee productivity since employees spend less time looking for items that are already in the inventory and spend more time on those that are still in the stock but not in use. The inventory turnover ratio increases as the inventory management software increases the efficiency of the company's operations. This is because the software identifies items that are in-stock and needs to be bought, eliminates the need for storage space as well as reducing the loss of inventory to damage and theft.
To get a detailed overview of this topic, see here: https://en.wikipedia.org/wiki/Inventory_management_software.