Managing your inventory as a small to medium sized business isn’t easy. It can take a lot of calculation, way too many excel spreadsheets, and, more often than not, missing or misplaced inventory. Handling your business inventory shouldn’t be a hassle — and it doesn’t have to be. An inventory management system, or WMS, is a fantastic tool that can help save on hidden business costs. With a WMS, you have the opportunity to make your business more efficient, both for you and your employees. Here are five ways that inventory management can save you money:
It Automates Your Warehouse
A lot of money can be lost by managing a warehouse manually. Sure, it may seem like you can remember where you placed that product at first– you even wrote it down to make sure! When you’re logging inventory manually, however, the margin of error is way higher. With manual logging, there is a high likelihood that your product is now lost somewhere in the warehouse. An inventory management system ensures that you know where your product is at all times by using warehouse locations and barcode scanning technologies. They not only improve your accuracy, but your likelihood of making a sale, too.
Inventory Management Systems Provide Optimized Picking
If you’ve ever made the trip to your fridge and back to your couch during a big game to grab a snack, you probably know the sinking feeling you get when you realize you forgot something. Now imagine that happening in your warehouse every time you need to fill an order. Whether you’ve got a handwritten pick list or have devised your own picking pattern, chances are that your method is slower and takes longer than an automated pick list would. In contrast, a WMS can automatically generate your pick list for you every time you need it, for every kind of order.
They Prevent Overstock or Stock Selling Out
As a retailer, the last thing you want is to have money tied down to overstock that could be spent driving more sales. When you’re manually managing your warehouse you can often miscount stock, resulting in either overstock or a stock deficiency. A warehouse management system solves this problem by accurately keeping track of all your inventory and allowing selling channels and clients access to it at all times. With a WMS, your selling channels and clients can see exactly where their stock is at any time, in real time. This ensures that you will never miss a sale or have money tied down just because of bad bookkeeping.
They Make Sure Your Inventory Is Replenished
If you’re manually managing your own inventory, it can be a delicate balancing act of knowing how much inventory to order without ordering too much or too little. This can become even more challenging when you consider factors like scaling, product demand, and seasonal demand fluctuations. It can be a frustrating process to go through alone. If you had an inventory management system, however, your task would be as easy as pushing a button.
They Can Calculate Your Available To Promise Inventory
Available to Promise inventory, or ATP, is an essential factor in knowing the amount of inventory you have available to sell. If you don’t know your ATP, you’re risking selling inventory you do not have. This can result in customer dissatisfaction and longer shipping wait time. With an inventory management system, however, you can have your ATP numbers at your fingertips; meaning you’ll never miss a sale, and always have a purchase order ready to go.
Want to find out more about how an inventory management system can work for you? Schedule a free demo with Logiwa today!