Inventory management software is an application software for businesses to track sales, orders, product inventory levels, deliveries, etc. It is a tool used for organizing inventory data that decades back was stored as hard copies and endless spreadsheets that was time consuming to analyze. E-commerce businesses use inventory management software to avoid product outages and overstock.
Components of an Inventory Management System
The major components of an inventory management system are:
This gives information on product inventory, activity graph and report. Asset tracking can be done using desktop software, mobile apps, barcodes , RFIDs etc.
A digital inventory management software can be programmed such that when the inventory level of products reach its reorder point, the system automatically notifies the store manager. The reorder point for each product can be set taking into consideration the lead time( i.e the time taken for the product to reach the store after an order is placed) and the buffer stock ( in case of emergencies say there is a delay in stock arrival). The reorder point can be set higher for high demand seasons.
Data on products and the order level can be fed into an inventory management system using product identification methods. Any information related to the product can be got using the barcode, RFID and other wireless methods of product identification. QR codes and NFC tags using smartphones as scanners are other identification methods that are used.
These above components provide efficient inventory optimization methods while opening the way to a fully automated demand forecasting system. Having explored the major components of an inventory management system let’s now see what are its benefits:
Benefits of integrating Inventory Management System to your site
Time saving, better decision making capabilities, reduction in unwanted inventory and spending are some of the benefits of having an inventory management system for ecommerce sites. Other benefits include
Having an inventory management software help in accessing the inventory from a common dashboard that helps in management.
Decisions Based on Real Time Data
The Inventory Management System (IMS) gives better insights into inventory levels real time.
Enhanced Operational and Supply Chain Efficiency
Integrating IMS to ecommerce systems provide access to the product giving better insights for efficient supply chain management.
Front and Back Office Under One Portal
With online inventory management tools, audits can be performed quickly and anywhere without having to be in person at each store location.
Inventory and Personalization
Now with the onset of better data analysis and personalization tools, the scope and benefits of an inventory management system have gone up several notches.
Visibility of Real-Time Inventory
Making the stock level of products visible to the customer provides a two fold purpose. This will ensure that the products that are out of stock are not recommended for purchase. Low stock inventory will encourage the customer to buy the product.
To truly optimize your inventory, you have to fully understand your product sales pattern and customers. You have to know the demographics of your customers, their buying habits or budgets. We at Zyxware Technologies have been building robust web applications for our clients in the ecommerce sector for more than a decade. We work with Magento and Drupal platforms to make the best possible package that suits your business. We ask questions. We observe. We analyse. Then we propose an inventory management system that befits your business process and help integrate it to your ecommerce site or even help build the ecommerce site. To get in touch with us click here!