Inventory Control Software: Helping your business grow against all the odds
Why do companies hold a variety of inventory items?
According to a simple economic principle of profit functions, firms have a fixed amount of inputs in the short run. However, in the long run, they can adjust their levels of outputs through an increase or decrease in the input quantities. This theory depends extensively on the company’s ability to accurately predict future trends in the market. Say, for example, you are a smartphone company and you expect an increase in your buyers in the coming months. The best response would be to deploy more resources next time so that you can increase the production of smartphones. This series of actions follows from economic intuition. But, is this as easy as it sounds? Continue reading
How can inventory control software be useful for tracking perishable goods
Businesses dealing with perishable products like pharmaceutical and food industry struggle with unique challenges when trying to optimize their inventory. For instance, food and beverage business are at a constant risk of contamination and are susceptible to spoilage in case of improper storage conditions and short expiry dates. A powerful inventory control software becomes an absolute essential because of the sheer complexity that perishable inventory comes with. Perishable products require special attention. You need to keep a close watch on a product’s expiry date and make sure that you actually sell it before its ‘sell-by’ date. Unlike nonperishable inventory, you don’t have the privilege of running a year-end sale on perishable items to clear stock because by then your products will have already expired.
Most of the operations in such businesses are about having the ability to constantly match supply to demand. This can give a tough time to businesses that sell perishable goods. And so technology came up with methods for recognizing inventory for perishable goods. Goods that seem to have no value in the next period or in short ‘perishable goods’ are difficult to track for managers. An effective inventory control system for perishable goods can alleviate many issues involved.
Inventory control software is used in organizations all across the globe to improve ROIs and lower overheads. Although inventory can seem so unsubstantial, businesses must understand the importance of managing it well in the grand scheme of things. What lies at the core of good inventory management is a detailed insight into your stock, reports on usage patterns, and the ability to manage that data quickly and effectively.
When you implement inventory control methods, your business is fed with the much-needed fodder to fire up the cannon of stock optimization, and also by fulfilling vital demands of employees and customers. The marketplace today has completely changed. Customers simply don’t hesitate to share poor service experiences on social media. Even worse, they can easily switch over to some other company through a single click. For employees, on the other hand, limited access to resources needed to get their jobs done can significantly lower productivity, and cause blockages in operational processes. Continue reading
Profitability and good inventory management are connected. Good inventory management boils down to accountability. Using a robust asset tracking software, you need to account for what’s coming into and out of your inventory. A study by the Gartner Group has shown that 70% of all businesses have ineffective inventory management systems in place, to the extent that the difference between their actual and projected inventory can be as large as 30%!
For the majority of businesses, inventory is a major asset, but if inventory is mismanaged it can create endless problems such as inconsistent high or low stock levels, miscommunication between warehouses and delays in fulfillment. It’s important to protect your business from poor inventory management. Unfortunately, many wholesalers rely on employees to manually monitor and react to changes in inventory. This approach exposes a business to errors and increases the risk that can impact its reputation. In order to be effective, asset management solutions, therefore, need to not only manage assets but to find a way to make your assets part of a larger managerial ecosystem.