6 October
Are you looking for ways to bring efficiency to your business and increase your sales? Whether your business is small startup or a fully established business, the best way to bring efficiency to your business is by getting an inventory management software. Inventory management is necessary to keep track of existing items, and it also gives you an accurate idea about the available item, which is in high demand so you can maintain your stock accordingly. A well-managed inventory plays an important role in the success of a business. Keeping your inventory level maintained in a haphazard manner gives rise to a greater chances of errors and ultimately results in a loss in your business. Gone are the days where you had to do your inventory management manually, today Singapore software development company brings you inventory management software for your ease and convenience. This software will bring automation and efficiency to your business. If you have a well-managed inventory management system, you can stay focused on your business.
In this blog, we will discuss some effective strategies of inventory management systems which will boost your sales.
Why is Inventory Management Important?
The term inventory management means the use of real-time strategies to maintain demand and supply. If you run a business, then you know that management and data tracking are not easy. Especially if you own an e-commerce business, you must have well-structured inventory management if you want to succeed in an online business. A well-managed inventory management system ensures that you have availability of stock at all times, keeps you updated on market demand and many other parameters. Another benefit of having inventory software is that it keeps you updated about the fluctuation in the market so you can spend your money on the right items accordingly.
How Inventory Management System Helps your Business?
The purpose of the inventory is to keep check and balance of items in stock and also ensuring to focus on investing hot selling products.
The inventory management system with promising features will help you in the following ways.
- Prevent losses
- Scheduled activities
- inventory tracking
- inventory management from any location
- Precise sales forecast
First in, First out
First-in, first-out, or FIFO principle means that you need to focus on the sales of older items so, that they do not expire in the storage facility. This principle is widely used in inventory management because neither you can sell an expired item nor you can store it for a long time at it will be costly.
For instance, if you have a piece of cloth in your inventory for a long time, chances are that the cloth will wear out, or its color may fade. So, this item will become worthless and unsellable.
Regular Inventory Audit
Keeping an accurate record of your stock items is necessary to run a successful business. Regular audits ensure your inventory is precise and give you an idea about when you need to restock. If you don't focus on regular auditing, you will lose the track of the data and items in stock. And the items are more likely to get misplaced or lost due to negligence of your employees. If you are facing problems in managing your inventory, then you should contact a Singapore software development company to develop inventory software for you. A customized inventory software software will help you in managing your inventory and runs your operations smoothly and just the way you want to.
Remember your ABCs
You must categorize the products based on their sales dynamics. Because each product has a different sales record, some are seasonal products while other products sell throughout the year. To categorize products according to their demand ABC rule is used.
A
These products are in high demand and have greater consumption values so, they must be monitored frequently. They represent almost 80% of your revenue.
B
These products have high demand due to their cheap rates. This category represents almost 15% of your revenue.
C
This category includes seasonal products, that generate high sales only during a specific period of the year. It represents about 5% of your revenue.
If you haven't categorized your product's yet, then you should start doing it already as it will give you an idea about the products that generate higher profit margins for you so you can focus on their sales.
Inventory Forecasting
Inventory forecasting is also important as it depicts your sales and profitability. It does is that the sales are based upon various factors such as sales figures, economy, market trends, and much more. Inventory forecasting is based upon the following two models.
Qualitative Forecasting
In this type of forecasting, the sales and profits are predicted by expert knowledge. For example, doing a customer survey is the best way to predict how the audience feels about your product.
Quantitative Forecasting
The sales of the future are predicted by extracting the data of sales in the past. The more data you have, the more accurate predictions will be made.
Identify Low Turning Stock
It is important to keep a check on the items that have low sales rates. Determine which items didn't generate many sales in the past 12 months, and stop the restocking of such items immediately. Moreover, you must come up with effective strategies to get rid of such items as soon as possible before they become worthless. Some of the common strategies used to get rid of such items are discounts, giveaways, limited-time promo, etc.
If you continue to keep such items in your stock, it will occupy your space and will result in a loss of money.
Carry Safety Stock
Having safety stock as a backup in your inventory will help you in emergencies. So, even if your supply chain gets disrupted, or delays occur in deliveries, it will not affect your sales and orders. Safety stock is more like the threshold that saves you in an emergency before you run out of an item completely.
Monitor your Sales Forecast
If you are running a high in demand but fast changing business, then speed and accuracy is the key to ensure accurate inventory levels because market trends are continuously changing. Keeping up with sales forecast is important in predicting the future of your sales.
Track your Sales Every Day
Tracking your sales and inventory can become pretty confusing if we're doing it manually, it also slows down the process and increases the chances of mistakes. But if you rely on the software, you will bring accuracy to your business as inventory management software's are efficient and error-free.
No matter what type of business you are running, to meet the changing trends of the world you need to automate your business operations otherwise you will be left out in the competition. Inventory software has countless benefits for your business such as stock alerts, financial statements, updated records, email reports, and much more. Moreover, this software will ease the burden on your employees and they will be able to perform in a far better way to take your business to a new rise. Once you get inventory management software for your business you will see a major difference.
Use Inventory Management Software
A stable inventory system is the backbone of any business. When your business begins to grow with time the inventory management software will help you in coping with the big changes to your inventory effectively. For a growing business, the management of a large number of orders and products becomes very challenging with time. So, inventory management software for small businesses is an ideal solution. Moreover, if you rely on your employees in keeping track of your inventory then you can never eliminate the chance of error and it may cost your business heavily in the future.
Inventory management has been streamlined to cope up with the intense business needs, all thanks to inventory management software. From keeping track of your orders and inventory to eliminating the use of spreadsheets, our software has automated the entire process. Through inventory management software, you can keep an eye on all your warehouses and protect your items from being misplaced.
Best Singapore Software Development Company
Are you planning on expanding your business but don't know how you will be able to manage the inventory? Singapore software development company is your one-stop solution to get the right inventory management software for your business.
Keeping in mind your business needs, Bttechsoft will develop Inventory management software that will ultimately grow your sales. Contact us now to get your quote!