An inventory management system software is the binding force that links procurement, operations, marketing, and sales services together, pushing for integrity, connectivity, and communication.
With inventory management software, wholesalers can streamline ordering, storing, purchasing, and supervising for better internal control and consistency. The effectiveness of internal inventory management depends on better processes and selling experiences and reduces inefficiencies in operations.
What is the inventory management process?
In a traditional system, inventory management deals with analysing present stocks and inventory and following that, reviewing what was sold and what is remaining. Once a review is conducted, they analyse the reasons why goods have remained and why certain items are sold out. Finally, decisions are made based on the review, prompting restocking and reordering.
Data has shown that 90% of employees are often burdened with tedious and repetitive tasks, and inventory management tends to be such a repetitive task among employees. However, using inventory management software converts stock control from a manual task to a completely automated task.
Why is inventory management system software needed in wholesale businesses?
In today’s landscape, it is important to implement processes that can drive integration, better communication, transparency, and lower costs, because this can result in the achievement of objectives and targets.
Here is what inventory management software provides:
Interconnectivity and integration
An inventory management system can offer interconnectivity and integration. With synchronised processes, there are fewer mistakes and errors within processes. Data has shown that automation can increase inventory accuracy from 63% to 95%.
Improved line of communication
The main benefit of inventory management is the improved line of communication. This increases external stakeholder expectations and betters the overall experience, which will build trust, loyalty and brand recognition.
With inventory management, there is an increase in transparency. Wholesalers say that stock control and enhanced visibility are two of the top strategic priorities for companies around the globe. Businesses can then manage bulk orders and purchase system software allows businesses to improve coordination and organisation within wholesale processes.
The wholesale industry operates in a volatile environment with immense pressure from competition. One minor mistake can affect price levels and stakeholder relationships. In fact, data has shown that 57% of companies believe supply chain and inventory management gives a competitive advantage. This is because the ultimate decisions made are backed with data and quantitative information.
Having a software system makes it easy for businesses to make comparisons, align intermediary needs, and make demand and supply-based decisions. This information can be used across departments for monitoring sales insights, consumer behaviour, product life cycles, and seasonal effects.
Wholesale businesses have to keep their costs low to pass on the economies of scale to sellers or retailers. Thus, equipping a software system will lead to lower costs due to improved communication and better decisions being made.
Enhanced financial management
With inventory systems, a wholesale business can achieve and pave paths to benefit from economies of scale, competitive advantage, lower costs, increases in profitability, and better financial positions.
Better consumer relationships and growth
An inventory management system will make your wholesale business stand out from the competition. This will draw in more customers based on transparency and visibility in the supply chain. This is going to create relationships in the long run, which secures repeat business and income, creating a movement of stability.
What are the features an inventory management system software should have?
Inventory management systems should have a variety of features to be able to provide the necessary benefits. The more options an inventory management system software has, the more that can be achieved.
The 4 main features that an inventory management software should have include:
- Easy report generation: Should offer detailed reports about products, market segments, sales, and turnover.
- Inventory control: Should enable better planning and lower storage costs through insights on products, demand, and supply.
- Purchase order management: Should facilitate simpler B2B services that can help you achieve objectives.
- Sales solution: Should accommodate all customers under one system with separate accounts to help consolidate information.
Reap all the above benefits and more with WITMEG’s inventory management system
When considering the implementation of an inventory management system software, it is important to consider financial availability, adaptability, and the processes presently in place. What integrity and connectivity can bring is an abundance of benefits under an all-in-one platform for the wholesalers.