Top 17 Inventory Management Benefits To Look For In 2022

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Top 17 Inventory Management Benefits To Look For
In 2022

• Inventory management or inventory control is the
  process of monitoring the warehouse of a business
  to ensure that the stock is being used at the
  optimum level and is managed well. An inventory
  management software manages the following
• Stock from the time it is ordered
•  Movement of the stock within a warehouse to
  multiple warehouses
•  Status of the stock till it reaches its
  destination or disposal
• In this blog post, we will throw light on the
  benefits and key features of the inventory
  management. 
• So without any delay, lets get started!Before
  we walk you through, lets understand the
  importance of inventory management. 

Why Is Inventory Management Important?
Inventory management allows you to track the
status of your stock levels across all your
warehouse locations across all the inventory
phases. With the right inventory management, you
can ensure that you never run out of a product
and also prevent overstocking of a particular
product.  On top of that, it also helps you
understand the demand to prepare a strategy to
process more orders quickly. Additionally,
inventory management benefits and prevents
overselling and can help you improve the
reputation of your organization. There are
multiple ways by which the inventory management
benefits your business.
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Why Do You Need an Inventory Management System?
Proper inventory management improves the
operational efficiency and allows you to perform
the following operations Track the status of
your stock Streamline different
processes Inventory forecasting planning
Here are the benefits of inventory management for
your organization
Automated Inventory Management
One of the biggest benefits of inventory
management is to automate multiple operations and
processes. Automation eliminates human error,
saves time, and decreases the probability of
mistakes. An automation system is capable of
executing repetitive tasks with little assistance
once you have set up some rules. Automated
inventory management enables you to have
real-time visibility of your inventory levels.
This feature plays a vital role in accurate
forecasting and delivers a unique customer
experience. It offers you real-time insights into
where your stock is particularly in different
locations such as a physical store or a warehouse
with multiple sales channels.
Inventory Forecasting
Accurate demand forecasting helps you to keep up
with the demand. Seasonal data can also be
utilized to understand any changing patterns that
require adjustments in stock at different times
of the year. The inventory management helps you
with accurate inventory forecasting to streamline
order volumes.
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Helps Prevent Overselling Stock-Outs
Overselling is one of the biggest issues for
growing eCommerce businesses and startups. In
case you do not have supervision on your
inventory, you might run out of stocks. Such a
scenario is called stock-out. Stock-outs not only
prevent your customers from returning to your
business, but also suspend your business from
entering certain marketplaces. Inventory
management process manages all your orders across
all your sales channels and helps prevent
stock-outs. With the right inventory management,
you can easily replenish your stock and track
them easily.
Reduces Your Business Costs
An advanced inventory management report tells you
what you have in stock. This helps in managing
your warehouse so you do not waste time looking
for inventory that is not available at your
warehouse. The inventory management saves your
time and streamlines the following processes
Picking Packing Shipping With accurate data
and insights, you can have a clear idea of the
products your customers are interested in.
Focusing on the products your customers are
buying is a great way to cut down eCommerce costs.
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Inventory Planning Forecasting
Information management and accurate reporting are
two key pillars to successfully running and
growing a business. The inventory management
process integrates with multiple marketplaces and
sales channels. Such a system also smoothens
shipping and third-party logistics (3PL)
processes with real-time visibility across your
organization. This further allows you to
improve your business and reduces wastage in
different costs including Unsold stock Unwanted
stock Stock in the wrong locations Improved
Supply Chain Operations Supply chain management
involves tons of challenges. With the integrated
inventory management system in place, different
eCommerce businesses and retailers can
efficiently prepare and incorporate a supply
chain management. The more suppliers you have,
the more you can narrow down the wait-time if a
particular supplier cannot deliver on the
deadline. You can prepare yourself for the next
phase of your business-like peak season to order
the right amount of stock from a supplier and
prevent any order management issues.
Adding New Sales Channels
Ever wanted to try a new sales channel to list
your products? An inventory management system
smoothens the process of adding new sales
channels and centralizes your inventory. With
such a system in place, you can track the
efficiency of your inventory in different
locations. Inventory Synchronization and
Forecasting are two key factors that help
maintain your inventory control and allow you to
sell your stock in multiple locations at once.
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Establishes PAR Levels
PAR levels or Periodic Automatic Replenishment
levels allow you to set an amount of inventory
that should be available at all times. You should
replenish your stock control when they reach
these levels. This allows you to balance and
maintain the standard demand rate for specific
items. The Periodic Automatic Replenishment level
of an individual item varies but you can find out
the accurate level using your average daily sales
volume, the lead time and safety stock number for
each product.
ABC Analysis
The demand for different products might not be
the same and is unevenly distributed between your
stock. ABC analysis enables you to streamline
this uneven distribution by categorizing your
products into three categories (A, B, C) based on
the following parameters Demand Supply Value Cos
ts Bifurcating your stock enables you to
prioritize ordering specific items you have
shortlisted. So that is how inventory management
benefits your business. Lets now check out some
key features you should expect in the inventory
management for your business.
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Key Features Of An Inventory Management System
Do you want to harness the power of the inventory
management for your business? Are you facing
problems related to increasing costs, low
profitability, and efficiency issues? Here are
some features and benefits of inventory
management to look out for in 2022.
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Real-Time Tracking

1. Reflecting the status of the inbounds goods as
   soon as they are scanned at the warehouse
2. Managing your warehouse transfers
3. Eliminating the new assembly runs if the
   components were used in different operations
4. Tracking the consignment stock even if it is in a
   different store
5. Stock control

Real-Time Inventory Value

• An inventory management process stays updated in
  real-time as per your accounting software. With
  such a system, you have access to
• Exact inventory values that are responsible for
  the volume and prices of your purchases
• Multi-currency support for your vendors and
  buyers worldwide
• A perfect line-view of your inventory according
  to different geographies
• Ability to efficiently track the production
  wastage and courier fees
• The ability to create product listings to offer a
  detailed view of your COGs (Cost Of Goods sold)
• Ability to have profit margins on your products
  according to the sales channel and its location

Alerting Systems For Low Stocks
Sometimes you might not know the exact amount of
stock you have. In such a case, a powerful
inventory management needs to set automatic low
stock alerts when a particular stock is running
low. This gives you the insights and time frame
to procure that stock or generate a purchase
order for that particular stock. You need to
prepare a reorder report that lists everything so
you can manage your stock control.
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Supplier Purchase Management

• With a proper inventory management tool, you have
  access to control your purchasing. Keep in mind
  that you should not waste time in transferring
  your inventory data into your purchasing process.
  The right inventory management allows you to
• Generate and fill your orders automatically
• Store all your supplier orders and details
• Generate quantity discounts for your suppliers
  for optimal purchasing
• Check the transaction history of your suppliers
• Receipt an order if your goods are scattered

Proper Reporting

• Getting a fancy inventory management is
  meaningless if you have to manually extract all
  the data every month. The main benefit of
  inventory management is to reduce the admin
  operations and streamline automation.
• Here is what to expect from an inventory
  management software for your business
• Margins
• Unit sales
• Stock control
• Backorder rate
• Inventory turnover rate
• Average number of days to sell for each SKU

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Bills Of Management (BOM)
Bills Of Management are the elements that define
the uniqueness of an assembled product. If your
inventory management manages your BOMs, it
becomes very easy to order the right components
in the right quantities for production. An
inventory management process auto-fills the
purchase orders right from your BOMs. This allows
you to nest multiple levels of BOMs for more
assembled products. Apart from that, you can
record the value of any production waste as well.
Serial Number Tracking
Similar to the batch tracking feature, serial
number tracking has its unique identifiers. This
feature allows you to have the serial number for
tracking if you have high-value components.
Serial Number Tracking also helps in after-sales
service so you can offer a unique experience to
your customers.
Batch Tracking
The right inventory management should offer a
batch of inventory tracking feature. Batch
tracking keeps you on top of the stock batches
through which you can easily monitor the expiry
dates, stock, condition of the goods and more
before they lose their important feature for
manufacturers who require robust traceability
systems if they want to recall the status of
their products.
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Conclusion
Harness the power of the right inventory
management process with TYASuite and increase
profitability, improve operational efficiency and
reduce costs at the same time. Our Cloud ERP
suite automates your inventory management
processes and saves time so you can focus more on
growth and marketing. Get all this while having
complete visibility into your stock movements and
sales data to spot more growth opportunities.
Contact Us today and mitigate your stock issues
even before they arise!