In today’s world, companies that don’t use automation to stay on top of their inventory run the risk of overselling and disrupting customer delivery times. The errors in inventory count are very often due to manual tracking. Manual inventory counts are usually tedious and time-consuming tasks for employees. It usually requires business operations to stop because no inventory movement should happen in warehouses or stores. Optimizing day-to-day processes with an efficient automated stock management system will significantly reduce supply chain errors.
Inventory management is also becoming difficult for any business as the marketplace grows and retailers launch new products daily. These days, multi-channel fulfilment sales are coming from several sources simultaneously, and it’s essential to have an inventory management system that can keep up.
Why are Inventory Counts Important?
At its most fundamental level, inventory counting is critical because it informs you of the inventory on your shelves at that moment. When your warehouse is messy, it becomes difficult to search for products, see accurate stock levels, and keep track of stock movements. However, there are many other reasons for taking regular stock counts. A few of those include:
- Preventing stockouts or overstocking: Keeping a regular inventory count provides more information for demand forecasting. Better planning leads to optimized stock levels, resulting in less revenue lost.
- Identifying and reducing errors and thefts: Understanding what’s on your warehouse shelves helps you determine when stock is past its shelf life and if some of your inventory goes missing.
- Control of inventory levels: You have more clarity for your entire supply chain if you know your stock levels.
- Effective prediction of sales: With the help of stock level and assortment analysis, you can predict the average number of future sales to restock on time and keep your stock moving.
As you see, you will get plenty of benefits from smartly managing your warehouse. Small service companies and eCommerce businesses need a good warehouse management system to help business owners and retailers manage all the complex inventory processes.
Using Technology to Automate Inventory Management
Use an Inventory Management Software Program
An inventory management system (such as an ERP software solution) is one of the best ways to improve your inventory system. An automated inventory management system helps businesses automatically keep track of their stock levels with minimal human intervention. These programs log all transactions in a database, making it easy to track what has been bought and sold. Additionally, ensuring that your inventory data is kept up to date and is available to your entire organization enables everyone across the supply chain to be on the same page.
Barcoding/RFID
Another great way to improve your inventory system by tracking your inventory levels and their movements is by using barcodes, RFID or QR codes. This automated process includes some manual labour but automates inventory management. Your product should already use a format you can leverage, such as UPCs, to get started. Once determined, decide where to add barcodes and the type you want to use.
What Are the Advantages of An Automated Inventory Management System?
- Increased Accuracy: One of the biggest benefits of an automated inventory system is improving accuracy.
- Improve Efficiency: An automated inventory control system is far more efficient than manual methods.
- Improved Decision-Making: Your data is always up-to-date and accurate, allowing you to decide when to restock. You can control stocks, check reports, accounting, and more anytime from anywhere in the world.
- Saves Time: Right from using the automated inventory control system, you will experience significant time savings.
- Reduced Costs: Keeping stock levels optimal can reduce warehousing carrying costs. Overstocking can tie up valuable capital, so businesses only need to hold enough stock to meet customer demand.
Final Thoughts
Proper inventory control can reduce waste and improve efficiency while also helping to manage risk. If your business is expanding and your current manual counting method is no longer sufficient, consider looking to automate ways to manage inventory and stock levels.
BHC Group helps companies gain efficiencies and improve productivity by leveraging existing systems and getting more out of the software they already own. Contact us to discuss how we can support your software and technology needs.
