Updated: Jul 6, 2022
1. Prediction of Customer Behavior
A real game-changing feature for your business is where forecasting is done by your inventory system. Predicting what and when customers will buy is made possible by tracking sales and calculating all possibilities. You get to formulate plans to contribute to the company’s success from the analysis of trends and behavior of consumers.
2. No More Understocking or Carrying Too Much Inventory
Balancing is crucial when handling inventory. Whether there is excess stock or insufficient items, both circumstances carry heavy repercussions.
Disappointing your buyers with the common “Out of Stock” situation really isn’t something that should be happening if you have a well-managed inventory system. Unfulfilled orders mean your business reputation will go down the drain. Ultimately, customers will lose their trust in you and move onto other businesses, leaving you with lower revenue.
To prevent all that from happening, you need to have crystal-clear visibility of your inventory. Having an inventory management system where everything is automated can ensure 100% accuracy and avoid situations of understocking.
A simple miscalculation due to manually managing your warehouse can lead to overstocking. What happens is you cannot sell finish that product, and already newer, more relevant products are in the market. The items have to be sold at a discounted price which will cause the company to lose money.
An inventory management system accurately tracks what you have and what you don’t have.
The ability to calculate Available to Promise inventory (ATP) is also why you should have this system in place. You can avoid selling what you don’t have by knowing clearly how much inventory is available. As you will be kept updated, orders are always ready to go and sales processes can run without a hitch.
3. The Control is in Your Hands
When an item is limited in supply, there is an increased demand for this “limited edition” item. This is how you can manipulate inventory to your advantage to increase the company’s overall earnings. Creating a sense of urgency in customers, where they are even willing to pay a heftier price for it due to the higher demand.
4. Avoid Unnecessary Spending
Money won’t be needlessly wasted to hire staff to deal with IT support and the size of your workforce can be accurately ascertained based on workload by looing at data provided by the system. With an inventory management system in place, you no longer need to go over budget in hiring personnel you don’t actually need.
5. Lead Time is Reduced
The quicker you can deliver the items to your customers, the more likely they will establish more trust in your business. Having an advanced inventory management software also allows you to be certain of the delivery time.
Shorter lead times whereby suppliers can make haste with a customer’s order will guarantee customer satisfaction. An efficient inventory management is one which keeps a clear-cut process, eliminating any unnecessary delay and attending to the orders swiftly.
6. Bottom-line gets Higher
You are able to significantly increase bottom-line (the amount you actually get to keep) with a proper inventory management software as it removes the need for employees to do manual work whilst enhancing business efficiency; there will be less errors, thus a large chunk of operational costs can be saved.
7. Well-managed Omnichannel
With the emerging trends of online shopping, consumers don’t solely shop in one location. Managing multi-channel orders may cause confusion due to the various platforms. There should be instantaneous tracking of stock levels to avoid running out of stock.
Many retailers lack inventory visibility which results in inability to fulfil orders, especially when you’re carrying out your business on various platforms. Poor inventory management leads to risk of losing out on sales, losing control of stock levels and being late with order fulfilment. All these are nightmares which will occur if your systems are not properly organized.
Good inventory management is paramount for your business’ success when handling multi-channel orders- you must always ensure each channel’s inventory is constantly sufficiently stocked.
8. Streamline Operations with Fewer Human Errors
You will see the difference when you allow the software to take over the jobs and to perform these jobs more accurately. Manual inventory management in this day and age? Completely unheard of! It’s slow and inaccurate. Why go through that hassle when everything can be automated?
When dealing with a sudden surge in orders, humans tend to get flustered- orders get messed up and customers get mad. Proper inventory management can avoid lost sales whereby all the order processes are streamlined and information is organized. Everything is systematic and orders can be fulfilled quickly and correctly.
FINTECH RAKYAT helps businesses migrate to the next generation of the Digital Age. Our comprehensive package of custom back-end and front-end solutions are designed to allow you to modernize your business quickly and effectively.
Click here or chat with us to know more!