Elements of Sound Retail Inventory Management

A large percentage of small-to-medium-sized businesses still rely on manual inventory tracking and management. This form of inventory management is a relic in today’s technology-dictated business environment.

Automated inventory management systems offer retailers far more insight into how their stock is moving. Deadstock can tie up capital you need, or even run your money down the drain in unsold goods. In contrast, automated retail services give retailers unprecedented control over the movement of the stock.

Discrepancies are few and far between when it comes to automated management, and that’s not surprising since manual entry is often flawed by human error. So what does a good inventory management system look like? More importantly, how will it improve your business?

1. Saves You Money and Time

Manual entry of all the stock that arrives at your warehouse is certainly time-consuming work. If your inventory numbers in the thousands, you’ll need extra labor to get the job done, and that will cost money. In a nutshell, outdated systems cost businesses considerably more in terms of money and time.

Unlike automated inventory services, manual inventory management constantly suffer from human error, some of which result in serious loss or misrepresentation of the available stock.
An automated system will also give you an edge when it comes to customer service. You will always be able to see what you have on hand, what is running low, and what needs to go quickly, in a snap.

2. Sound Inventory Equals Sound Accounting

Inventory and accounting are two separate but very codependent sectors of business, and this is good news if you implement automated retail services.
Many retailers neglect to bring their inventory management systems into the future, failing to realize that it is more or less an appendage of accounting. Inventory systems can communicate with software running other departments of the business and this results in much more fluid workflow.

3. Inventory Backups save (Businesses’) Lives

In the unfortunate event that a business loses all their inventory records, there’s usually little else to do but start from scratch. This costs a lot more time and money than investing in automated inventory systems, which offer cloud backup services. Cloud backups ensure that your business doesn’t have to grind to a halt when a hard drive crashes or a computer is stolen or destroyed.
This type of future-proofing saves many businesses from potentially unpleasant bottom lines even during times of crisis.

4. Provides Useful Sales Insights

An accurate and highly automated inventory system keeps track of not only what’s in stock but also how much of it is remaining. Real-time stock movement is yet another perk of using modern retail inventory management. The ability to monitor and compare how different products perform sale for sale gives you quite useful insight that you can use to maximize sales and minimize losses in form of dead stock.

At the end of the day, sound inventory management equals fewer slip-ups, accurate data for accounting purposes, and easier management of goods that come in and out of your warehouse. Being highly cost-effective makes it an attractive option for many SMBs that suffer from the effects of outdated inventory management systems.