Why Inventory Management Is Important For Your Business?

Inventory Management is very crucial for your business as it affects every aspect of your business—from your warehousing costs to your ability to fulfill orders accurately and on time. Can you imagine running a business without knowing how many widgets you have in your inventory?Or when you need them to complete a sale, not knowing exactly where they are? Even worse is not having enough on hand to complete the sale and losing the customer to a competitor.A good inventory system will provide high visibility of all items right down to the shelf and bin in multiple locations, if necessary. This helps you to fulfill orders on time and accurately. Furthermore, it keeps accounts and finances in check.

Some Of The Core Benefits Of Inventory Management Software

Control Your Costs – Physical inventory is one of the biggest expense and proper managing of this expense is very important. With Inventory Management Software, you can easily manage your inventory while keeping your expenses low. It will prevent stockouts, allow for ample lead-time to replenish stock, and give you an idea of the value tied up in your stock at any given time. Furthermore, with inventory reports, you can understand what stocks are doing well, versus which are just taking up shelf space. Not having right inventory at the right time means back orders, excess inventory, etc. These drive up costs.

Tracking Inventory – With centralized view of stock across sales channels, Inventory Management Software enables you to understand how much is in stock, and where. Based on this, you can also allocate inventory to specific sales channels, which is important if you have warehouses and distribution centers at multiple locations, thus, enabling warehouse management.

Improve Order Accuracy – You can integrate inventory management solution with warehouse management, enabling you to maintain an organized warehouse, which reduces the risk that you’ll simply shove new inventory into a random spot, forget it’s there, and lose track of your merchandise.Inventory management software may also include logistics features that help you track order fulfillment time. That way, you can give your customers an accurate delivery estimate (and avoid falling short of those promises).

Manage Planning And Forecasting – With Inventory Management Software, you can analyze data to know well-performing stocks. This minimizes your holding and handling costs, improves revenues and frees up cash flows. Also, by planning and forecasting – you deliver on customer expectations better.

Big Question – Which Inventory Management Software Can Help My Business?

We recommend Microsoft Dynamics NAV as it enables your company to gain greater efficiency, streamlines your supply chain while meeting customers’ demands.

Some Of The Key Inventory Management Functionality In Dynamics NAV Inventory Software

Alternative Vendors - Manage purchase of the same item from several different vendors.

Assembly Management - Specify list of sellable items, raw materials, sub-assemblies and/or resources as Assembly Bill of Materials that comprises a finished item or a kit.

Analysis Reports – Empower decision makers with overall responsibility for sales, purchases, and product portfolio management with meaningful information to ensure data-driven decision making. Built on item entries, this granule provides a customizable, analytic view that enables people to add and combine analysis objects—customers, items, and vendors—according to their needs.

Basic Inventory - Set up items that you carry in your stock and specify their unit of measures, costing method, inventory posting group, unit cost and price and other properties.

Bin - Organize your warehouse by assigning items to bins, the smallest unit in the warehouse logical structure.

Cycle Counting - Manage cycle counting, a basic method of verifying inventory record data used to maintain and increase inventory accuracy. Set up cycle counting on the item or SKU level

Item Tracking - Manage and track serial and lot numbers.

Location Transfers - Track inventory as it is moved from one location to another and account for the value of inventory in transit and at various locations.

Pick - Enable warehouse workers to create a pick from the released order.

Stock-Keeping Units - Manage stock-keeping units (SKUs).

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