Every business deals with inventory in one way or another. Suppose your business is the part of the supply chain. In that case, whether you deal with manufacturing, warehouse management, or run a retail store, you are known for issues like time-taking stock counting, running out of stock because of late reordering, or scarcity due to inaccurate demand planning. In this case, it becomes evident that efficient inventory management Software is crucial for your business’s smooth operation and overall success. This blog will discuss the everyday challenges of managing inventory and how inventory management Software helps manage retail stores.

Inventory Management- Definition

Inventory management is a set of activities directed at tracking stock and maintaining sufficient stock amounts. It confines control over the entire flow of goods, from purchase to sale, to have the right amount of the right stock at the right place at the right time.

Inventory management is vital for different participants of the supply chain, including:

• • Manufacturers

• • Warehouses

• • Wholesalers

• • Retailers

• • E-Commerce work

All these firms order supplies, store goods, and fulfill customer orders, so they have to track their inventory carefully.

Types of Inventories

There are four variations of inventory: raw materials, work-in-progress (WIP), merchandise and supplies, and finished goods. These four main categories help businesses classify and track items in stock or that they might need in the future.

Challenges in Inventory Management

Managing inventory is a knotty process involving many features. So, operating it manually or with the help of disconnected legacy systems quickly causes errors and financial losses. Here are some of the main challenges:

• • Erroneous inventory planning- Calculating the exact amount of stock for multiple product types is challenging, whether related to ordering raw materials necessary for manufacturing or forecasting the ever-changing customer demand for retail sales.

• • Overstocking- It means having too many goods. Ordering and keeping extra interests “just in case” is a poor idea because you have to pay for additional storage space. There is a risk of theft of unsold goods.

• • Out-of-stock- It means needing more goods. In this case, either the production procedure stops, causing problems and possible non-fulfillments, or you lose revenue and have unhappy customers who want to buy the product you ran out of. 

• • Wrong purchase time or amount– The replenishment process involves accurately predicting the number of items you need and calculating the time necessary for delivery, as lead times vary across different vendors. 

• • Inaccurate inventory counts- Inventory count monitors what you have in store to ensure no differences. Many businesses still manually carry out their inventory counts, which takes too much time and is prone to errors. 

• • Disorganized warehouse- Unfortunately, a lack of order in a warehouse is a widespread problem. Unoptimized inventory allocation, poorly labeled areas, and incorrect storage conditions lead to wasted time, lost or damaged goods, and possible theft.

What is inventory management software?

Inventory software, or inventory management system, is an application that allows businesses to track, organize, and oversee all of their inventory and their inventory-related processes.

There are various free inventory management software like Eazybills. 

Qualities to look for in inventory management software

There is a wide variety of available inventory management software in India, starting with accessible mobile apps for fundamental operations like stock counts and custom-developed company platforms fully integrated with other business applications. Here, we will define the features of inventory management software:

• • Inventory control and replenishment– Inventory control rests at the heart of inventory management, with the features of tracking and reordering being the most critical procedure. Tracking inventory automatically is a huge factor in saving your time.

• • Automating reordering- It is the most valued and stress-relieving feature for many supply managers. You can also set customized warnings to notify you when you reach the reorder point as you are running down on some products.

• • Inventory planning and optimization- Roughly calculating the optimal amount of inventory that must be purchased, whether as raw materials for production needs or goods for sale, is challenging. It has to match production, storage, and sales capacity on one hand and changing customer demand on the other.

• • Demand Forecasting- This is important for wholesalers, retailers, and manufacturers. Since not all product lines are identical, prior production is vital according to anticipated demand. In this way, you increase turnover and avoid both understocking.

Final Words

With this blog, we will inform you about inventory management software, its role in the retail business, and the challenges of inventory management. With the help of the functionality of inventory management software, you can easily choose the best software for your retail business.

As you all know, plenty of Inventory Management Software is out there. But, Eazybills is the best inventory management software with numerous features like reducing the risk of overselling, cost saving, stock management, and many more.