Are you one of the small and medium businesses (SMBs) that does not have an inventory system in place? It is shocking to imagine that there are companies operating without an inventory management system in this day and age. But even more perplexing are the staggering numbers – as many as 46% of small and medium businesses! It’s no wonder businesses are struggling with being efficient. If you’re still on the fence about investing in inventory management hopefully the following seven benefits will convince you otherwise.
1. Inventory Management Systems Mitigate Human Error
Did you know that human error is considered the number one issue in 46% of warehouses? Fortunately, one of the great benefits that come with inventory management systems is the ability to reduce human error. There is no doubt that when people have to manually keep track of inventory there are bound to be errors. By automating the process and using sophisticated management software you can eliminate this barrier to growth.
2. Simplify Life For Sales Forces
Procurement and sourcing teams could use every resource that simplifies their life. An inventory management system provides them with an excellent tool to save time and money while simplifying processes. Such systems through pre-configured metrics make sourcing and ordering from multiple vendors easier
3. Assist With Time Management
When you’re running a business, time is money. Any software that can cut down on time-wasting is welcome. An inventory management system can assist you in shortening supplier lead time which results in more efficient relationships. That’s not all but these systems can also aid you in reducing excess stock and getting rid of obsolete stock.
4. Improve Supplier Negotiations
The key to negotiating better contracts is being able to see the bigger picture. This can only be done when you’re running an efficient inventory management system. Such a system allows you to get a holistic picture of different suppliers, their rates and fees, advantages, and disadvantages. This clear visibility gives you the power needed to negotiate from an informed point of view.
5. Enjoy Better Product Visibility
From time-to-time products may be recalled because of a variety of reasons. If you’re running a large-scale operation with manual inventory systems, it can be a nightmare trying to track the recalled products. You can waste enormous amounts of time in the search. However, with an automated inventory management system that comes complete with RFID tagging tracing products by batch numbers becomes a breeze. In fact, if we look at research from Auburn University’s RFID Lab Studies we see a sharp increase in inventory accuracy – from 63% to a staggering 95% – in businesses with automated inventory management systems.
6. Make Better Business Decisions
Having accurate data in front of you can go a long way in helping you make better business decisions. The right inventory management systems present you with a range of features that generate charts, graphs, and predictions that can guide you in making data-driven moves. Management solutions such as those provided by ProcurePort can even help you determine your inventory turnover rate.
7. Investing in Inventory Management Systems Shows Your Seriousness
More and more businesses are moving to adopt inventory management systems, as shown by the Motorola Future of Warehousing Report. While procurement teams might be somewhat slow in the adoption of new technologies there is a shift taking place. Over the last two years, we have seen 66% of retailers stepping up where inventory management was concerned and making significant investments. This is in part thanks to the direct correlation that has been found between the adoption of such systems and improved operations. Don’t be the only one left behind while others get on board with inventory management automation.
Invest in Inventory Management Software For Your Business
Manual pen-and-paper inventory management systems are outdated now. Automated systems are now the new normal. If you’re looking for robust, easy-to-use inventory management software, look no further than ProcurePort. Our solutions are among the best and can be tailored to your individual situation. Contact us for more information.