Inventory Management Software for Retail: Top 10 Benefits

When it comes to the retail business, proper inventory management is the key to keeping your business from going under. The problem is that keeping track of inventory is one of the most difficult things you can do. On a daily basis, you get to deal with sales, new receipts, returns, breakages and so many things that affect the stock level. Although it is hard, keeping track of your inventory is the most important thing you have to do. In this article we have highlighted the top 10 benefits of using inventory management software for retail that will make your work easier.

1. Know the products that are profitable and the ones that are not
Knowing which products sell the most will enable you to invest in the most profitable stocks. Success in retail requires you to invest wisely by buying the right quantity; enough to keep the sales going while at the same time preventing stock-outs. A dedicated inventor management system will help identify the fast and slow moving products. You can use that information to reallocate your budget to invest in profitable products.

2. Automated and effortless management
The inventory management software for retail will help see the products that are running out, compare the stock with what is selling and reorder automatically before you run out. Automated reporting also helps identify problems right away.

3. End of day reports to save hours in stock closing
Reconciling sales and purchases through the automated system will give a stock report that keeps you updated on what is going on in the warehouse. Reporting is done automatically so less time is spent in stock closing. At the end of the day, you just confirm the data.

4. Access real-time, accurate information
Real time notifications and alerts and accurate information is useful in helping you act fast and never miss any sales opportunity. A modern system allows you to run quick stock reports to get an update on what is going on. You can compare stock and reorder stock automatically.

5. Avoid out-of-stock situations and overspending from overstocking
The inventory management software for retail will lead to efficient reordering. The accurate reports will let you know what is in stock, what is moving the fastest and what is running low. This helps make informed buying decision.

6. Spot errors easily
A dedicated management system helps spot even the smallest errors immediately. The automated inventory system will help you know if a step is being missed in the warehouse.

7. Enable you to scale your business
The inventory management system will grow with your business. You can automate most processes so as to reduce overhead costs associated with hiring more staff.

8. Integrate accounting
The inventory management software for retail can be integrated with most of your other tools including accounting. The system generates reports in real-time thus can save the accounting team time.

9. Lower operation costs
The software will let you know what is in stock, what has been sold and keeps track of everything that has been sold and shipped. Automating processes helps reduce the need for hired labor.

10. Satisfied customers
Precise inventory management leads to better customer service. You can track shipped orders, keep up with inventory levels and identify incorrect shipments. The software will also enable you to speed up the recall process and forge better customer relations. Gaining customer trust gives you an edge in the competitive market.

Pros and Cons of Inventory Management Software

To be honest, this article should only have been about the pros of inventory management software. The cons are so insignificant compared with benefits that they are barely worth mentioning. However, in order to remain impartial, we are going to discuss all aspects.

Let’s start with the cons and then, when you get to the pros section, you’ll realize that these are small disadvantages which are definitely overtaken by benefits. There are only two “problems” which can prevent you from implementing inventory software: one is the cost and the other one concerns the training of the employees. Inventory management software requires some money indeed. If you decide to invest in point of sale software, this usually comes with features that allow you to manage your inventory, along with other important characteristics. As you will notice soon, automating inventory management is in fact helping you save money and makes your business more profitable, so the costs pay off very soon. Honestly speaking, you will probably earn more money by implementing inventory management software than you invest in buying it. As it is the case with all business tools, you and your employees might need some training in order to use it correctly. In most of the cases, you can all learn how to operate it in a matter of days. Once you hold control on how it works, you will actually save a lot of time, so it is worth to spend a few days with learning. This would be all when it comes to the cons of this type of software.

On the other hand, the benefits it can bring to your business are huge. Time and money are the most valuable resources of a business owner and inventory management software helps you save both. Imagine how much time you can save by simply not having to manually count items in your deposit anymore. Your employees will know in a matter of seconds the situation of stocks. They can offer prompt and accurate information to customers and they can serve them with increased rapidity. Inventory management takes a lot of time and it is not the funniest way to spend your days. You can forget the endless hours dedicated to this activity. When it comes to saving money, you might be wondering how this works in your benefit. For a better understanding, let’s take a look at a practical example. In order to make profits, you need to always be able to put at your customers’ disposal products which are in demand. If you fail to order them in a timely manner, you might run out of them. By having instant access to the situation of your stocks, you’ll always know in advance when you need to place an order. You will also know which the most sold products are, so you can order more of those. Similarly, you’ll also have access to information concerning products which don’t sell. Instead of ordering more of those and occupying your space with unproductive items, you can sell them with a discount and still make some profit, keeping your space available for other products. This is just one example of how inventory management software can help you save money. In fact, such software is even more complex and can improve your business in a multitude of ways.

If you decide to implement point of sale software, you definitely have to look for one with inventory management features.

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.