Benefits of Using Inventory Software or POS Software in Business

Well founded performance management system will always help reducing the overall as well as carry costs of any enterprise. Providing the cost benefit balancing of stock and controlling the flow of stock effectively, the inventory software serves useful purpose for any enterprise.

Inventory Software Features

Basic features of inventory software are as follows:

  • It helps analyze the cost of existing stock in the enterprise.
  • Inventory or POS software can effectively and efficiently manage the flow of articles so that the enterprise is not either low or high on stock as both these situations are detrimental to the growth of such institution.
  • It monitors the flow of purchase and shipping of articles to different locations.
  • Having correct quantity of items in the store is one of the most important tasks accomplished by use of the software.
  • It helps maintaining the flow of items from Vendor to store or Vendor-DC-store.

Flow of Inventory

Effective POS system involves keeping a steady flow of inventory and managing as well as monitoring the same. Some of the major aspects of such flow of inventory are as follows.

  • Receipt of the goods and keeping stock. Picking up goods for fulfillment of orders.
  • Packaging and shipment of goods.
  • Monitoring sales to inventory tasks.
  • Effectively reducing the spilling of products.
  • Identifying materials about to expire or already expired and hence rendered unsalable.

While all these are the basic peripherals of the system followed by most of the enterprises, there are also other aspects where systems are interconnected using separate components or technologies intended at customizations. Results are even more beneficial in such cases.

Retail Inventory Software

Retail software for inventory management is usually placed at the sales locations. Such software not only helps inventory control at all levels but may help monitoring the larger supply chain as well. Keeping track of multiple items such as the date of receipt of the product in the store, the quantum of stock in hand, history sheet of sales and transactions, as well as all the descriptions, it helps effective business management efficiently.

Warehouse Management Software

Inventory management software is also used in warehouses. While the features are identical to that of the retail based software or the supply chain software, the tasks accomplished using it are a little more intent in nature. Keeping track of goods incoming and outgoing from the store, it also effectively monitors the condition of the articles that are stored.

Inventory Tracking and Asset Management

Software is also available for inventory tracking and at the same times manages the assets by tracking them suitably. Most of the entrepreneurs are now using a hybrid of traditional inventory software with modern features.

It is another form of customization of the software primarily meant for stock control and management.

Inventory Software Solutions: Effective Applications for Inventory Management

Inventory refers to the goods and services that businesses hold in stock. It can be anything, from bicycles, piggy banks, brass rods to microchips for a computer and tubes of a video game console. Companies have many ways of handling their inventory and it varies on the kind of business they are running. However, inventory management can be overwhelming. This is particularly true for large-scale businesses that handle a multitude of items at once. During complicated times of inventory management, inventory software programs come in handy.

Inventory software solutions are used in business and warehouse operations to help them keep track of the quantity, status, and location of stock inventory. It eliminates the need to use a written ledger to record inventory transactions. This is because written reports can cause all sorts of hassles. For instance, if you made a mistake on recording a certain transaction but discovered it three months later, you’ll have to go through each transaction that happened within three months to correct the problem. If you’re still not convinced, here are some advantages of using inventory software.

It is Cost-Effective

When you hire employees to manage inventory handling, it means you’re paying for the hours of his/her work. This exhausts both your employees and your potential income. With the help of inventory software solutions, one employee will suffice to handle inventory management. In addition, you will be aware if any item on the list is missing, thus preventing the loss of profits and production delays.

Automatic Audits

Inventory software solutions offer real-time audits that can be linked with point of sales software and systems. This gives you accurate and updated picture of your stock at any time of day. Additionally, most inventory computer applications can be set up to automatically run audits, thus eliminating the need for manual counts or scans which are time-consuming.

Speed

In business, speed is an important factor. No well-paying customer wants to wait for hours on end just to get what he/she wants. With inventory applications, your company will move faster as your warehouse’s layout is improved. You can group similar items together and position popular products in ways that they can easily be accessed when ordered.

When purchasing the right software solution, it is important to first determine what your company needs. Choose a software solution that can help resolve business problems. There are numerous IT consultants and businesses that offer a wide range of inventory software programs that are both cost-effective and efficient.

Why Do You Need Inventory Software?

All companies have inventory to be managed either small or big size. If you are just starting a small size business and only have a few products for sale, you are probably tracking the inventory by hand. Obviously you do need to implement Inventory software. But as your business grows, which mean your products and sales increase, the inventory tracking becomes more complex. You perhaps need to capture the item number, quantity on hand, quantity available, item cost, who the supplier is, and so on. You absolutely need a tool at least spreadsheet software to track it.

The inventory will be more critical for companies that produce a certain products composed by raw materials that have expired date and lead time in purchasing. As I work in a pharmaceutical company, I know that most of raw materials have expired date and for some items, we have to order couple months in front. That’s why we have to set minimal safety stock for such items. If we can’t track them well, it most likely we will have either stock out of finish good or over stock of raw material.

Another important thing you should track is item cost and inventory valuation (FIFO, LIFO, Average, etc) because it determine selling price of your products. Obviously there are many other benefits you will get if you have ability to track your business inventory.

You see that inventory tracking becomes time consuming tasks and requires many resources at that level. So if you want to increase inventory tracking efficiencies you need a tool for automating the process by installing Inventory software package. Another benefit you obtain when installing kind of software is you will have extra time to focus more on strategic activities.

Now it’s easy to find inventory software, for small business to enterprise. For medium and large/enterprise, the inventory software is part of ERP software while stand along inventory software is created for small business companies.