How Real-Time Inventory Management Is Changing Business?
Real time inventory management is implemented using the following methods:
- Tracking Inventory– RFID (Radio Frequency identification) tags are attached to the merchandise. When any employee moves with the freight, location of the product can be tracked with using them. This lessens the probability of misplacing or loss of inventory.
- Barcodes- Use of bar codes eliminates the chances of theft or loss of goods from the store. There are no loose ends when barcodes are used.
- Cloud system- Storage of inventory data on a cloud system is an efficient way of inventory management. Your customers would be able to see the accurate records of the stock of different products and thus decision-making becomes easier.
Benefits of the Real time inventory system
Benefits of the Real time inventory system are countless. Some of them are mentioned below:
- Reduction in out-of-stock situations is ensured. Thus, you never disappoint a customer and your credibility in the market is undisputed.
- When all the orders are right on schedule then the extra transportation cost due to tight delivery calls and shipment management is avoided. This saves you from all the damage -repair cost and the gross profit is more .
- When the number of inventory products matches the shipment requirement, then the cost of storage of extra units manufactured is lessened. This liberates precious space from being stocked with unnecessary goods. This space can be used to stock the top-sellers of the store in bulk, maximizing the profit.
- When each record is solid, the flow of supply-demand chain is smooth. The margin of error is reduced to almost negligible. Equilibrium in market and smiles on customer’s faces is the topmost priority and real time management guarantees that for sure.
- An efficient real time system also makes certain that the demand forecast for a given period is almost correct. Miscalculation in demand prediction can lead to underproduction or overproduction, but with these systems demand forecasts are reliable.
- These softwares generally contain billing information for each customer as well. Since a record of every single penny is maintained and there is no chance of fraud or loss of cash.
- Cloud storage feature in inventory systems is very effective. Keeping everything transparent between retailers and customers is very beneficial for the business since no misconceptions are formed. Debit or credit of inventory goes straight to cloud system and customers can see the exact stock of the company. Thus they can easily decide what to buy, when to buy without leaving anything to assumption.
- Cash flow is improved in the company. Not only do you get rid of needless expense but also the cash-flow becomes flawless and the company is in a more stable position financially.
- Almost whole process gets automated and the need of manforce is reduced, thus errors are reduced. In orthodox business, once an order is placed, employees run to warehouse to make sure that their stock is sufficient to fulfil the demand whereas in Real-time management systems, the stock present is there on the computer screens and if it is insufficient the order won’t be placed in the first place.
So, the main agenda of using Real-life inventory management is not only to increase profit, but to increase the competency of the business in this era of competition. These systems guarantee customer satisfaction and reputed business. Thus, Real time Inventory management is the need of the hour by every business.