What Is Automated Inventory Management?
As the name implies, automated inventory management is the process of simplifying different inventory activities. Reordering, supplier interactions, stock levels, real-time updates, franchise administration, internal transfers, customer orders, and other processes may all be automated. Automated inventory management saves companies time and money and improves accuracy and efficiency.
The Advantages of Automated Inventory Management & Inventory Control Systems
Accurate inventory management and control provide immediate and long-term advantages to every business. It boosts efficiency, improves order accuracy, improves product knowledge, aids with demand planning, and much more. It is also advantageous for all responsibilities inside a firm, from the CEO to the cashier.
Below are the advantages of using an Automated Inventory Management system.
- It saves time
The most obvious benefit of automated inventory management is that it saves you time. A significant amount of it. Manual inventory tracking is very time-consuming, particularly if your company has a vast product range. Even a few hundred SKUs are tough to keep track of without inventory software. The automated system also saves you time with ordering, receiving, stocking, and reporting. No more looking at those spreadsheets to see what you have available.
- Increases Accuracy
Aside from saving time, an automated inventory system will significantly decrease human mistakes, no more guessing how close the numbers are in the spreadsheet. Data and procedures pass through fewer hands, providing less potential for minor errors and clerical inaccuracies. Keeping everything in one inventory tracking system helps things operate more smoothly.
- Improves Efficiency
By automating your inventory management, you will increase your efficiency. Think about how time is spent making inventory adjustments, sending employees to do on-the-spot cycle counts, creating reports, and changing orders. These tasks are significantly reduced or even eliminated. This allows your company to concentrate on what is important and continue to grow and expand effectively.
- Real-Time Insight
Having access to your data in real-time allows you to respond quicker to problems and issues. Assuming your inventory management system is up-to-date and accurate, business owners and managers have access to inventory, reporting, bookkeeping, scheduling, and other information from any place at any time of day, allowing for more confident decision-making.
- Manage Multiple Warehouses
As companies expand and grow with the help of an inventory management system, at some point they run out of warehouse space and add additional warehouses. When this happens, the inventory tracking system should handle this complexity with ease – get reports, transfers within a warehouse and between multiple warehouses, and much more should remain seamless.
Key Automated Inventory Management Functions
Functions of automated inventory management system
The functions of an automated inventory management system go hand in hand with the advantages, but we wanted to take a deeper look at some of the most crucial automated inventory management features that your inventory management software should include.
While not all of these inventory management tools are essential for every company, they are for any business looking to increase their presence in the marketplace. These capabilities are especially significant for companies who want to grow to several sites.
- Automated Reordering and Stock Alerts
One of the most crucial components for efficient inventory management is automated reordering. Companies can rest easy knowing that they’ll always have the proper quantity of stock on hand thanks to stock alerts, specific stock levels, and vendor integration.
Any company should define their reorder and safety levels for each product in their inventory. When the inventory reaches a certain level, the system will identify the need to make a reorder and will do it automatically.
- Stock Transfers
Businesses should be able to make stock transfers and adjustments to manage inventory across various locations. This enables you to transfer products between sites without losing track of it or affecting any reporting or cost analysis.
- Integrated Inventory Tracking
Of course, automated inventory tracking is essential for any business, but so is integrated inventory tracking. With more companies migrating online, it’s critical to monitor all sales and activity at both the brick-and-mortar shops and digital storefronts. Integrating your partners with your inventory system allows you to easily adjust for unexpected demand hits and ride out the supply storms.
- Advanced Multi-Channel Reporting
If you sell to multiple channels, automatic reporting must be linked to your inventory management system to keep track of everything, because your inventory management system is updated in real-time, so are your reports. Managers, owners, and partners can create ad hoc reports for any location(s) at any time. This allows you to swiftly break down complex problems and make better-educated judgments and decisions
- Store / Bulk Order
These take automation a step further. Instead of establishing tailored reorder levels for each individual product, store/bulk orders provide a single report for all goods that need to be purchased. The program then sends order requests to each relevant vendor. At the touch of a button, all the purchase orders are sent.
- Product Notifications
When production orders are made internally, when purchase orders are sent, or when a product is shipped, your inventory management software should automatically dispatch alerts to keep everyone informed. Instead of wondering when something will come, checking tracking information, or making tiresome phone calls, the system alerts you as soon as action is taken.
Ending thought
ERP Gold is a complete and integrated suite for managing inventory. Whether you are a manufacturer, wholesaler, or e-commerce retailer, we help you manage all aspects of your business from sales, and purchase to production, delivery, and even returns of products in real-time with greater accuracy and efficiency. ERP Gold is here to help you with all your inventory management and control issues! Click HERE to read more about how we can help, call us at 888.334.4472 for a free consultation. If you want us to call you, fill out our contact form HERE. Or click HERE to schedule a free consultation or demonstration of how we can help you.