The needs for maintaining inventory are given below:
(i) Tracking Inventory: Implementing a good inventory management system helps you to keep track of stock at regular intervals and gives you control over the operations carried out. It gives you information on where to stock and how much to stock, to which warehouse you should move the goods, which helps you reduce operational costs and enables an uninterrupted flow of goods and improved customer service.
(ii) Control Your Costs: Keeping reports of your inventory helps you in analysing the performance of your products which are doing good, which are not moving well, which are holding place for so long in inventory and so on. It reduces the operational and storage costs and also helps in identifying the right product to deliver in the market.
(iii) Improve Your Delivery: Late delivery is a serious issue when it comes to business which creates a bad impression on the company and may lead to loss of customers eventually. Proper Inventory Management Systems help in delivering the product to the customers on time.
(iv) Manage Planning and Forecasting: Inventory software helps in improving demand forecasting by analysing the data and helps you in finding better-performing products and stocks which helps in minimising the holding and handling cost and improves the revenue. With the right planning, you are also able to deliver the product to customers on time.
(v) Reduce the Time for Managing Inventory: With good inventory management, you can reduce the time taken to keep track of all the products, analyse their performance regularly and how many you have in stock and how many orders you have currently to produce the product and also reduce the inventory recounts process.
