Automating inventory management brings many benefits. It improves inventory management, customer satisfaction and your profitability, for example. However, the challenge lies in implementing it.
To help you understand why automated inventory management is critical to the growth of your business, this post outlines how it will help you grow into a profitable enterprise.
What is an Automated Inventory Management System?
An automated inventory management system is a software application that allows wholesalers and distributors to add, edit, delete and transfer inventory in real time. Also, an automated inventory system allows you to pull inventory counts from your suppliers using a data feed that feeds into your own website.
5 Ways an Automated Inventory Control System Grows Sales
1. It Saves Time
Rather than manually updating inventory via a spreadsheet, inventory counts are automatically updated with inventory management systems that add or subtract inventory when it is sold, returned or received. There’s no human required to do it or the chance for human error, saving time when inventory is received, returned or sold.
2. It Gives You Real-Time Visibility Into Inventory
If you aren’t tracking your inventory in real time with some type of order tracking software, you can’t possibly know where you stand on inventory at any given time. Real-time inventory feeds allow you to know how much inventory your suppliers have and how much you have across every channel of business. This is information you need on a daily basis to gauge how your channels are performing as well.
3. It Reduces Your Chances of Being Understocked
Because you and your customers always know what you have in stock via your inventory feeds and inventory analytics, you’ll never oversell a product. This will improve the customer experience, thus increasing your customer repurchase rate and revenue. This particular benefit is crucial to customer satisfaction on a daily basis. It can make or break a business if you are out of stock.
4. Increased Data Accuracy
With less manual entry comes less human error. By automating inventory management, you remove the need for manual data entry since your inventory management software takes care of adding or deleting inventory. For example, when an item is sold on your website or in your B2B ecommerce portal, that inventory is automatically deleted from your inventory counts. There’s no chance for error in this area if your inventory management system is set up correctly.
5. It Helps You Scale and Grow Your Business
Because inventory updates occur in real time and in a matter of seconds, businesses with dozens or thousands of transactions a day can grow with ease. If you were to manually track inventory, there would no doubt be daily errors that occurred. These could take hours or days to repair, plus you would leave many customers unhappy if their order wasn’t fulfilled due to you being out of stock.
If you’d like to learn how Systum can help you automate your inventory processes to grow your business, fill out the form below.
Categories: Inventory Management