One of the biggest challenges to growing your online business involves managing your inventory. You need something that allows you to manage your items, transactions and more. In other words, you need an inventory app.
As your business grows, the number of orders also increases. Once youstart expanding across other sales channels and into new markets, it becomes virtually impossible to manage your operations manually.
Think about it.
When listing your products and processing orders, do you log in and out manually out of different merchant channels? Do you manually adjust your stock levels on each platform every time you make a sale?
Sounds arduous, right?
Not only will doing things manually hinder business growth, but they almost always lead to human errors like overselling, which can damage your reputation or worse, lead to marketplace suspension.
While that alone is enough to convince you on the importance of inventory management, it’s not the only reason why you should consider using this kind of system.
In order to understand what your business or businesses can benefit from an inventory app, we’ve come up with a list of some of advantages you might want to check out:
1.SIMPLIFIES MANAGEMENT OF INVENTORY
Perhaps the biggest advantage to using an inventory management app is the fact that it makes the entire process of inventory management a lot easier. As a result, you save time, money and most importantly, sanity.
As supply and demand changes throughout the year and as your stock levels raise and fluctuate, having an inventory app comes in handy. It’s life changing. You can avoid the risk of human error simply by automatic your major business processes.
- REDUCES RISK OF OVERSELLING
Another major challenge for online sellers and business owners is overselling. Overselling often results to loss of control of your business, dissatisfied customers, and in some cases, suspension from merchant platforms such as eBay and Amazon.
BUT, this selling challenge is preventable. How? Simple!
By coordinating your inventory and orders on each of your online merchant sites and eCommerce platforms, you can be sure that’ stock levels are adjusted ever time a sale is made.
3.GIVES YOU BETTER SAVINGS
When you upgrade your inventory management system, not only will you be able to eliminate the human error-related inventory costs, but you also end up with more savings in the future!
What are these inventory cost-reduction benefits, you ask?
First of all, you improve your chances of reducing supplier lead-time through fostering better supplier-management relations.
Another benefit is that it allows you to reduce or cut down excess and outdated stock. It also reduces subsequent costs sustained, by creating your equity levels and calculating your safety stock.
And that’s not all!
The biggest cost-saving benefit, perhaps, comes from automation.
Poor management of inventories can lead to huge losses in revenue, caused by avoidable errors like stock-outs and overstocks. And this is the next inventory management benefit comes in.
- AVOID STOCK-OUTS AND OVERSTOCKS
When managing your inventory, keeping the right balance is a very challenging task.
Too little stock, after all, can result to a stock-out, dissatisfied customers and loss of potential sales.
On the other hand, having excess stock can use up valuable workhouse space and bring about unnecessary changes.
No matter how you look at it, both situations come at a cost for your business.
Fortunately, with an inventory app, you’ll be able to track how low your stock levels are and automatically set up re-ordering points for each product, in order to avoid stock-outs.
- IMPROVES BUSINESS NEGOTIATIONS
You’ll discover that you’ll have a much better product tracking experience and at the same time access valuable information allowing potential deals and negotiations with suppliers when you use an inventory management app.
You will, specifically, be able to acquire a much better understanding of which suppliers gain the most from your business and which ones need improvements.
You will be more knowledgeable and better equipped when it comes to negotiating more advantageous trading terms and exclusive deals when you have detailed information on supplier performance.
- BETTER PRODUCT VISIBILITY IN CASE OF A RECALL
As an online seller, you probably know by know how product recalls can be inevitable at times.
However, the problem lies in the amount of time and effort it takes to track down the affected products without a batch tracking function.
As a matter of fact, having no full product tracking and batch locating function, can prove challenging when it comes to fixing problems with your supplier. This is simply not an ideal way to run a business.
7.HELPS YOU MAKE BETTER AND MORE PROFITABLE BUSINESS DECISIONS
An effective inventory management system can provide vital sales information, which then allows for more data-driven business decisions.
When you have a much better and more informed understanding of supply and demand, you can eventually predict sales trends, giving you eve more competitive edge in the market.
A good number of inventory management apps provide you with the tools you need to make strategic decisions, especially when they have access to reporting features and inventory metrics.
- EASY UPDATES
Most inventory management systems have cloud-based mobile applications. This means you can complete upgrades any time, anywhere. Maintenance and updates also only take a few minutes. With updates on the cloud, you won’t have to spend any more on disruptive software installations.
- BETTER WORK PERFORMANCE
An inventory management app will lead to better employee performance by giving them full system access at the tip of their fingers. Since majority of workers nowadays carry a smartphone, it will be easier for you to implement a mobile inventory system. Most inventory management apps are easy to understand and use as well.
So, there we have it. The benefits of using an inventory management system. In conclusion, using one can be extremely useful for your business as it saves you time and money. It helps you sell and manage your products better, it increases efficiency and reduce costs.