Inventory management is a crucial task in overall business bookkeeping. Regardless of your business type and size, maintaining complete accounts of your business is impossible without proper inventory management software at various stages of product management. The right inventory management software will assist you the most in:
- What products are in stock?
- How much stock is available?
- What quantity of orders is pending?
- Which products need to be replenished and when?
- What quantity of each product needs to be reordered?
As a business owner, knowing the answers to these questions is essential. And inventory management software will provide you with these answers instantly! In today's e-commerce or online business era, managing inventory without using inventory management software is not feasible for any small, medium, or large business. So today, we will learn about the benefits of inventory management software and explore the best inventory management software options in Bangladesh.
This blog contains-
What is an Inventory Management System?
Inventory management system is a term we use to encompass all aspects related to managing the stock or inventory of goods in a business. It includes everything from purchasing and production of goods to handling customer orders, sales, and replenishment. Thus, to understand what an inventory management system entails, it's necessary to be familiar with the following components:
What is stock or Inventory?
The word "Inventory" in Bengali refers to a list or catalog of goods or products in stock. Simply put, it is a list of products or items that a business has in stock or inventory. Some people also use "inventory" to refer to the stock or availability of products from a practical perspective.
What is stock or inventory management?
e management of inventory or stock-related items/products in a business is known as Inventory Management. In simple terms, inventory management is the process that encompasses everything from purchasing products, selling them, and reordering. It involves coordinating aspects such as how much has been purchased, how much is in stock, how many orders are pending, and how much has been sold. Some people also refer to it as store management or store inventory.
What is inventory management software ?
Inventory management software is a tool used for managing stock or inventory. It helps businesses oversee their inventory management system through a software application. For example: The easiest and most cost-effective stock management software in Bangladesh: HishabPati..
The complete record of purchasing, selling, ordering, and reordering of products is maintained on inventory management software.. As a result, it is considered an important tool for modern business management. Especially in today's e-commerce or online businesses, using inventory management software has become almost essential.
Why you will use inventory management software?
A statistical study has shown that in 2023, nearly 81% of e-commerce businesses worldwide faced the most problems regarding inventory management! They suffered significant financial losses due to stock-outs or depletion and the lack of proper tracking, amounting to approximately $1.75 trillion USD!
A good inventory management software makes all related tasks easier for you. It provides answers to various questions such as how much stock is available, how much needs to be purchased, when it was last purchased, what the demand is for a particular product, which products are selling less, which products have more orders, and how much stock needs to be maintained. Thus, inventory management software is often referred to as the engine of a business! Now, let's look at the 7 benefits of using inventory management software that will make managing your business's stock or inventory flawless and easy.
01. Inventory management software will present an accurate account of stock or inventory levels.
An inventory management software can provide real-time or instant updates on your business's stock or inventory. Here, you can:
- Maybe
- Probably
- Lets see
- Is there an order?
- How is the price?
- How will a product sell?
You won't have any such concerns, as you'll instantly attain accurate and precise inventory accounting for your business through inventory management software. Your entire stock management will be automated. Moreover, due to accurate accounting, you'll find it easier to make decisions.
02. It will forecast inventory levels!
Although predicting product stock or inventory is not its primary task, a business owner can understand when to stock up on products if they receive answers to these questions in a timely manner:
- What products are in your warehouse or storage facility?
- How much stock of each product is available?
- What is the expiry date of the products?
- How many customer orders are pending?
- Which products are selling well and need to be restocked quickly?
- Are there any changes in prices of products?
- Is the software tracking price changes when restocking products?
Is the software tracking price changes when restocking products?
03. Inventory management app will assist in determining product prices.
When you have records in your system of which party is selling which product at what price, it becomes easier for you to determine your pricing. For instance, if the price of a product was lower before because your purchase price was lower, and now its purchase price has increased, where and when will you find this update? You need to receive this update before receiving new orders and it needs to be in a specific place. This specific platform is inventory management software. So, using inventory management software makes it much easier to determine the prices of products.
04. It will reduce business operating costs.
Every business automation reduces the cost of business management, and the use of inventory management software is no exception. For example:
- It reduces the cost of hiring additional employees because one inventory management software can handle the work of many employees alone.
- It mitigates the risks of human error or incompetence, thus avoiding the costs associated with mistakes or inefficiency.
- By managing inventory from a single office using inventory management software, travel costs are reduced.
- It saves businesses from losses by minimizing excess stock, low stock, and unanticipated orders.
05. Inventory management will solve the problem of excess stock.
When you have the correct stock information available in your inventory management software, the tendency to accumulate excess inventory decreases. Additionally, having data on factors such as previous stock levels, expiration dates, demand patterns, etc., enables you to make informed decisions. Therefore, it can be said that inventory management software is the solution to the problem of excess stock for businesses.
06. It will solve the problem of low stock.
Addressing low-stock or insufficient inventory problems is another capability of inventory management software. For any business, especially in the realm of e-commerce or online business, having products available when customers place orders is crucial. Knowing the accurate stock levels makes ordering easier. With inventory management software, you can see the quantity of products before taking orders from customers. If there's low stock, it can be flagged, allowing you to place orders and make purchasing decisions accordingly.
07. Alerts before the product's expiration date!
"Imagine this: Before any of your products expire, you receive an alert on your mobile in the form of a notification! You can then make inventory decisions based on that notification list. This is now very possible! By using a high-quality inventory management software, you can enjoy this benefit. For example—" HishabPati will give you all this benefit.
