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.