Inventory tracking software is an important asset to any business selling a large number of items. The software can greatly improve your company’s efficiency and save you a lot of money. You will not only reduce inventory costs, but also ensure that only useful items are stocked in your warehouse.
Regardless of whether you are a small, medium-sized or large company, you should automate your inventory records. There are various high-quality software programs that enable you to automate and track your stock in an easy and accurate manner.
Still not seeing the need for inventory tracking software? Here are four reasons why you need inventory tracking software.
1. Reduction in Material Cost
Inventory tracking software improves procurement practices. With a more accurate forecast, you will be able to place timely orders and avoid emergency purchases. This can, in turn, help the supplies and purchase department get good terms and conditions from vendors, which can result in up to a 5% decrease in purchase costs.
When you give vendors information in advance about the products you need, they can, in turn, plan their production schedules in a better manner. An inventory tracking system also helps to cut down on idle materials, parts, and equipment.
2. Improved Accounting and Cash Flow
With better billing, accounting, and reconciliation procedures, you will reduce the number of days of your outstanding AR. Inventory tracking software makes it easy to follow up on outstanding debts and accounts. Your accounting staff can thus concentrate more on reducing delinquent accounts.
You can easily improve your cash flow by reducing the number of days for your accounts receivable. It is also possible to utilize trade credit when you take advantage of any credit facilities and supplier discounts.
By forecasting your needs and demands, you can plan how to use your inventory cash in a better way.
3. Lower Cost of Labor
Inventory tracking software can directly or indirectly reduce labor costs by up to 10%. The software reduces overtime and re-work and accelerates work flow. The introduction of an inventory tracking system means improvement in manufacturing practices. Your work schedule will not experience outages and interruptions like before.
An inventory tracking system also reduces work repetitions and amounts to be paid for work done overtime. As a result, you will save money that you would have otherwise used to pay personnel associated with inventory management and stock record keeping.
On the same note, there will be better demand forecasting and improved workflow, which means that employees will do less rush jobs than before. You will not need to re-set machines and tools. All these will result in reduced production costs.
4. Improved Sales and Customer Service
An inventory tracking system improves sales and customer service by streamlining. Orders take less time to be shipped, and customer requirements are priced and produced quickly. You will fill customers' orders and track them every step in the manufacturing and delivery process. Sometimes customers can personally interact with the system to know the specifications and prices without the help of a middleman.
The production system becomes agile in order to allow customers to change demands much later in the production cycle than previously. Inventory tracking software brings about a better business environment by improving customer loyalty. With tracking software, you will be able to improve your own agility and deliver customers' demands accurately and on time.
Now you know why you need inventory tracking software. There are many other ways of automating inventory management systems. Purchasing inventory tracking software is a good investment for your business.
About Clients First
Business software should increase productivity, improve profitability, and be easy for staff to use. Most of today’s ERP solutions are good at finance and have horizontal niches for distribution, manufacturing, maintenance, repair, and overhaul (MRO) for aviation and heavy equipment. This makes searching for a software solution more about what the implementation partner can do to help you get the most out of the system. That is why Clients First is not a software company--we are a business solutions and services company.
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