Smooth operation from start to customer satisfaction is every business’s goal. Automated inventory management can help skyrocket any business to a higher level of operations. As traditional manually counting inventory methods become obsolete, these automated inventory systems are not only managing inventory. They can save a business.
Switching over to a new system might seem a bit intimidating, especially if you don’t consider yourself a tech wizard. However, these systems can streamline the entire process, connect warehouses, and give real-time figures of what a business’s supply level is at that exact moment.
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What does automated inventory mean?
Automated inventory control is a process that utilizes advanced technology that helps to manage inventory as it is processed through the supply chain. Some current software solutions use barcodes and scanners to efficiently monitor stock levels.
Software automation helps perform essential tasks such as managing customer order deliveries, inventory tracking, monitoring real-time data, and purchase order tracking . Inventory systems help set up processes to easily complete these tasks
What are the benefits of using an automated inventory management system?
There are many reasons why an automated inventory management system can help streamline your business.
The growth of any business relies on the capabilities of the technology of the company. If the system is outdated, it can limit the scalability of the company. Spreadsheets are great in the beginning but become a major obstacle to growth when the supply chain becomes more complex.
For example, if a company is still using a manual entering process for their inventory management, it would be unrealistic to open multiple large warehouses. The individual locations would use many resources to continue to make these operations practical as manual entries. It would take time, staff, and other resources to complete all of the necessary tasks.
By implementing an automated inventory management system helps to streamline standard procedures that surround inventory procedures. These high-tech systems require less human resources and resources than the manual way of taking inventory.
An automated inventory management system tracks real-time inventory data across multiple locations and can integrate with other essential software solutions . The flexibility will enable companies to make accurate data-based decisions that allow for exponential business growth..
Related: Why ERP isn’t the business solution you think it is.
Minimizes Human Error
The manual way of keeping track of inventory, such as spreadsheets and tallies, exposes the system to human errors way too often. Employees that are counting can easily miscount or forget to add data to the calculations. Those mistakes can cost the company stocking problems as well as an inaccurate bottom line. The key is to provide the automated tools to your employees to be successful across your entire company, let’s not forget to equip the operation team with new modern technology.
Automated inventory management software can conduct these calculations with minimal human intervention, meaning fewer human error.. The software does the calculations for them and automatically sends the data to the management system.
While automated inventory management software provides real-time inventory statuses, it also allows companies to track multiple locations with lot capabilities. . If an item becomes transferred between warehouses or if an incoming or outgoing shipment alters stock levels, this software has the ability to keep up-to-date data on said inventory. Companies can watch inventory movement logistics in real-time and address misinterpreted discrepancies that may arise from missing data.
Manually tracking and analyzing can take hours. Multiple locations add even more complexity to the process. Manual entry mistakes also can damage your customer service. In cases where something was miscalculated or perhaps indicated to be at another location, it can lead to a frustrated customer. In the competitive world of retail, customers have plenty of options, and losing even a single customer due to inventory issues is unnecessary.
Automated inventory management can help scale any business, but it can also maximize your time. While these systems take some time to get up and running, it enables a more efficient processs—leading to saved time, and smarter decisions.
Automated inventory management systems, like those offered at Fiddle, help businesses efficiently manage their inventory, sales, sourcing, and manufacturing. Their software gives users the full visibility they need to scale their business.
How Does Automated Inventory Control Work?
These advanced software options can go well beyond the standard procedures. They are able to automate the integration of existing systems, analyze sales data, and even forecast consumer demand for products based on consumption rates and sell through reports . Some basic and advanced versions of the system can even alert users if the stock reaches a reorder point and auto generate a purchase order.
Automated inventory management software can be integrated alongside many ecommerce platforms . This helps to streamline the ordering process and can help predict demand. By collecting this information through theecommerce platform , the inventory management system can generate detailed reports about promotion performance, turnover rate, and profit margins. All in real-time.
Related: What is a Purchase Order (and how it differs from an invoice)
The collection of data that an automated inventory management system can provide the marketing team is vital information on the selling rate of individual items as well as their profit margins. The utilization of this collected data can help to maximize sales.
The information gathered also gives the team insight into consumption reports and sales trends that help a company keep itself stocked. These management systems also help identify profit margins, cross-examining cash flow and turnover rates. All of those factors can affect the bottom line of any company.
By correctly utilizing the software’s built-in features, it can help to determine reorder times to ensure that the product doesn’t run out while waiting for the next supply to arrive. The software can also be set up to reorder stock when it hits a specific quantity..
Overall, by implementing an automated inventory management system, a company can streamline daily operations and tracking processes. Cycle Counts and item transfers become automatic in the inventory system and save a company’s valuable resources.
Its simple integration with an ecommerce platform further enhances a business’s operations by optimizing data and analytics, leading to business expansion and more significant bottom lines.
Ready to streamline your inventory management? Fiddle has everything you need and the support you want to make your inventory tasks easier than ever.