Irrespective of the nature and size of a business you run, inventory management is a crucial function to source, store, track, and manage your stocks and facilitate sales process. The progressive shift in inventory management from manual to automated systems helped businesses to cut down time and cost and ensure sufficient stocks based on changing market demands. We will explore how inventory management systems work and how to find an ideal inventory management system for your business requirements.
An inventory management system is an integrated platform which tracks stocks and goods movement through supply chain. Starting from purchase of materials to processing, production, and to final sales, business inventory management system governs end-to-end inventory handling for your business. If you have to manage a considerable inventory for your business, it should be handled efficiently and timely to optimize the profit margins. Choosing a reliable inventory management system will help you to achieve this goal.
Benefits of having an advanced inventory management system includes;
Inventory management systems vary based on the size, industry, and inventory requirements of various businesses. For example, small business spreadsheet inventory systems are completely manual inventory whereas purchase, production, and sales teams are dependent on excel spreadsheets, which may oftentimes fail due to improper data entry. On the other hand, global enterprises are using cloud-based inventory systems which hold centralized data to track stocks at various warehouses.
These systems as more advanced compared to spreadsheets. Even though it may be ideal for small businesses, stock management systems lack essential features needed for medium to large enterprises.
These are designed to track and control the inventory automatically. There are on-premise and cloud-based systems to improve operational efficiency by reducing time taken.
To plan, manage, and optimize warehouse storage. There are software applications which can handle purchase, production, and stock control.
3PL means third-party logistics, with which the businesses can track their goods in and out of the fulfillment centers across various locations in real-time.
ERP or enterprise resource planning systems is a one-stop solution covering complete business planning by integrating various functions like inventory management, supply chain, accounting, and workforce planning etc.
Cloud-based inventory software is a digital system to record stock levels and inventory data. It can integrate and track inventories remotely .
Other common types of inventory systems are
The futuristic inventory management systems use technologies like artificial intelligence, Internet of Things, blockchain, intelligent order management, and quantum computing etc.
Sarvadhi team is highly experienced in building enterprise resource planning and inventory management applications for various industry sectors. As requirement of each business differ in terms of their inventory management needs, Sarvadhi can closely analyze your pain points and produce solutions to fulfil end-to-end inventory management needs.
Global Diamonds operates in the intricate world of gemstone trading and approached Sarvadhi with their decentralized inventories and fragmented inventory system.
With our top rated inventory management software, Global Diamond achieved a 40% reduction in inventory management time, 60% increase in user engagement, and 25% boost in sales.
Four major types/styles of inventory management systems are
JIT - just-in-time management
MRP - materials requirement planning
EOQ - economic order quantity
(DSI- and days sales of inventory.
Need for these inventory management types may vary for different businesses.
Inventory management is meant to track down stocks whereas order management is to track down customer orders and sales. We can see inventory management is a key facilitator to order management / order fulfillment.
As discussed above, Sarvadhi’s building diamond trading inventory management system for Global Diamond is a classic example of functional inventory management system, which improved sales, brand value, and profitability significantly.
We can see that inventory management is one of the most critical aspects of business management. As there is no perfect one-size-fits-all inventory management solution, it is necessary to get the assistance of a reliable expert building and customizing the most suitable inventory management system for your business. Considering the industry expertise and experience in building sophisticated inventory management systems, you can rely on Sarvadhi to find the most appropriate inventory management solution for you.
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We can share a custom quote for your project knowing your exact requirement.
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