Inventory Management Software Increases Returns on Stock

In a highly competitive economy in which online sales are eating more and more into the profits of traditional retailers, the latter need to become more efficient than ever in order to survive and grow their businesses. That means “getting with the times” as well as improving the efficiency of all aspects of their operations. One key area many retailers need to focus on improving is stock control and this can easily be done with inventory management software.

Any POS software solution will come with integrated inventory management software but the key is to find one that delivers a lot more as such a system can have an impressive impact on your bottom line.

Intelligent Inventory Management Software

You might be currently using inventory management software and you think it’s more than enough. After all, it tells you how much product x, y or z you have left at the end of the day – if you’re lucky – which means you know what you need to order. That’s great. It’s certainly more efficient than doing inventory by hand but are you really getting all the information you need?

Yes, your system will seem adequate, until you try a POS software solution with intelligent inventory management software. This software not only keeps track of your stocks but it also generates reports detailing statistics regarding your sales of the various products in your portfolio. In other words, you will know, at a glance, what you really need to order and what you don’t.

For example, let’s presume you have 5 units of product X left and 200 of product Y. If this is all the information you receive, then you will likely order more of product X and none of product Y. However, the intelligent inventory management software will also tell you that you sell only one unit, on average, per month of product X, but you sell at least 300 units of product Y per month. Now, your order is likely to change, isn’t it?

As you can see, this is critical information because it ensures you are buying the right products at the right time to maximise profitability. Why tie money up in product X, when you can purchase more of product Y which has a much higher turnover rate?

But to make these smart decisions that will ultimately lead to a better return on stock, you need all the information. And the best way to get it is to opt for a POS software solution with intelligent management software. With this software, you can always be sure that your store will have the optimal types of products as well as adequate stock levels.

Additionally, if you have multiple points of sale, the software will centralise all the information, in real-time, and provide recommendations for each individual store. This will allow you to maximise the profitability of every point of sale by ensuring your inventory and stock levels meet the requirements of your customers.

POS software comes with a wide range of features that allows retailers to increase the efficiency of their operation and thus increase their profit margins. Inventory management software is essential for this because inventory is the largest cost a retailer incurs and if it isn’t managed properly, one is simply leaving money on the table.