In recent years, retailers saw a rise in the returns and sales rate upon implementing a more efficient and sustainable approach. However, the issues pertaining to managing returned and excess stock isn’t being resolved at a fast-enough rate. Retailers have to look closely at how they handle returns, the value of which is foreseen to reach $400 billion this year, excluding inventory losses or restocking expenses. Inventory Management Software is among the latest kinds of technology that can be used by retailers to meet this challenge.
Inventory Management Software can serve as a competitive advantage for retailers when it comes to managing stock or returns. Here, we will highlight 15 such benefits of using inventory management software that eases your work.
See also: Top Retail Tech Solution Providers in 2020
1. Automated Management
Using spreadsheets to keep a tally of stock quantities, or execute a physical inventory count to keep the numbers up to date is a time-consuming task. However, the inventory management software for retail helps you in this area by automatically checking the products running out of stock or comparing the items to reorder. The automated approach aids you in identifying the problems right away.
2. Product Traceability
By using inventory management software with batch tracking capabilities, retailers can trace their products and materials more effectively. One can pick the items with specific batch numbers, expiry details, or other information. This simplifies your production and restocking process.
3. Identification of Valued Products
Retailers must identify the products that sell the most so that they can invest in those stocks. With the wise investment, the retail industry can keep their sales souring while at the same time preventing out-of-stock issues. A right inventory management system will assist the product managers in this area. It helps them identify the fast as well as slow-moving products, using which they can reallocate the budget on valuable products.
4. Accurate and Real-Time Data
A modern inventory management system provides real-time notifications and accurate data for retailers that are extremely important in acting wisely and grabbing the incoming sales opportunity. This system lets you generate precise stock reports instantly to learn the current on-goings. Using this information, one can compare stock and reorder it with no hassle.
5. Superior Insight
Besides real-time report generation, retailers can also use an inventory management system to reduce employee theft, another major cause of revenue loss. As per the US Retail Fraud Survey, the retail industry has lost $60 billion to sales shrinkage, where 38% of respondents stated that employee theft was the biggest reason for this loss. A more rigid inventory control system assists the retailers in identifying such problems and resolve it at the earliest.
6. Evade Out-Of-Stock
The inventory management software for retail, as explained above, will help the product managers in efficient reordering. The report will tell you about the items in the stock, the products that are selling fast, and thereby helping them make a more informed buying decision.
7. Instant Stock Closure
Integrating the sales and purchase information into the automated inventory management system will provide a stock report that keeps you updated on every minute process in the warehouse. As reporting is carried out automatically, the retailers don’t have to spend more time in stock closing. One has to confirm the data at the end of the day.
8. Easy Spot Recognition
An inventory management system helps you spot all the errors, even the smallest ones immediately. Therefore, by using this automated system, one can identify if any particular step is being missed in the warehouse.
9. Scaling your Business
You can grow your inventory management system along with your business. Since most of the retailing processes are automated using this software, the companies can lessen the overhead costs associated with hiring more employees.
10. Forecasting Ability
The reports generated by retail inventory management software helps you predict future sales details. Using the data on sales peaks, past trades, and records of customer demand for particular items, you can get an idea of what is selling well, and how to increase inventory turnover. This way, you can avoid an excess of stock that isn’t selling, which takes up massive storage space or could be discounted or donated to the people in need.
11. Integrate Accounting
If you did not know, you could integrate your dedicated retail inventory management tool with several other technologies. For instance, integrating it with the accounting software saves time, as it generates multiple reports in real-time.
12. Reduced Overselling
Overselling is considered a significant challenge for retailers, resulting in disappointed customers, loss of promotional control, and sometimes, being suspended from eCommerce places like Amazon and eBay. By rightly tracking the stock and selling details, you can undoubtedly prevent this issue. You can leverage this tool to synchronize your orders and inventory across marketplaces, ensuring your items are adjusted every time you sell it.
13. Less Operational Costs
The dedicated inventory management tool will let you know the details of the item in stock, sold item reports and tracks everything right from manufacturing to shipping. Due to this automated process, the retail industries can easily reduce the need for additional labor or resources.
14. Satisfied Customers
The customer plays a crucial role in your business success. Gaining their trust gives you an edge in the retail market. A well-built inventory management tool helps you offer exceptional customer service with several features. The retailers can quickly track all their shipped items, maintain inventory levels, and locate any incorrect shipments. The software also speeds up the problem resolution process and thereby building a strong customer relationship.
15. Enhanced Business Negotiations
Inventory management software with batch tracking features deliver better product traceability and gain valuable information for potential negotiations with your suppliers. You can obtain a better understanding of the supplier, such as who benefits your business the most and what requires specific improvements. With this information on supplier performance, you can negotiate more favorably and sometimes with exclusivity deals.
Conclusion
Having the right inventory management tool by your side makes your retailing task a lot easier. There are tons of such software available online, but some are more beneficial for your firm than others. Hence, spend some time exploring the various options and pick the one that fits your industry well. With this approach, you can set a new milestone in the years to come.
