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What is online inventory management?

What is online inventory management?

How to promote your business online Posted On: 23rd Aug 2022 | Tue | Posted by: Admin


Online inventory management is precisely what it says – a way to manage inventory online. It offers digitised and systematic processes that can control inward and outward inventory stock flows. As a cloud-based software system, it is vital to steady business growth and sustainability.

Online inventory management has transformed the traditional system completely. It reduces the need for expensive and time-consuming manual processes that are non-negotiable in on-site inventory control. The automated system prominent in online inventory management helps organizations maintain stock levels and ensures that they have the right inventory as and when required. With retail marketing and online shopping on the rise, inventory management has become inevitable in various industries, including healthcare, utilities, and education.

 

Importance of Online Inventory Management

Inventory management affects every aspect of a business, right from warehouse costs to successful order fulfilment. It grows with your business, generates accurate reports, and helps meet daily demands while taking forecasting and decision-making up by a notch. What makes online inventory management a fundamental business tool is automated inventory tracking, improved customer satisfaction, and increased profitability. Not to mention how easy the system makes it for a company to run its business.

 

 

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Characteristics of Online Inventory Management.

Online inventory management has a few distinct features. Read on to know more about them.

 

• Managing Services

Online inventory management keeps track of the material cost for service-oriented companies. They add these costs to the services to get an accurate total cost.

 

• Managing Reorder

Inventory management systems can be curated to request reorders. It helps the organization ensure that the products don’t run out of stock.

 

• Identifying Products

Identifying products in a second with the help of QR codes or NFC tags has made the tracking experience convenient. There is no need for an expensive scanner when you can just take out your smartphone and scan it!

 

 

What are the Benefits of an Online Inventory Management?

The online inventory management system has certainly made a lot of things easier. Let’s take a look at its benefits below.

 

• Increased Sales

In addition to keeping track of vendors, products, stock availability, and spare parts, the cloud-based centralised database of the online inventory management also allows stakeholders to access them in real-time. Based on this data, the sales and marketing teams can provide a clear picture of the product information, thus ensuring timely delivery and strengthening their relationship with the customers.

 

• Cost Reduction

The online inventory management system also reduces inventory costs. How?   Well, inventory maintenance costs a sizable sum, and several businesses face tremendous losses due to wear and tear, damages, and manual mishandling of products. Besides, they need to cover additional costs due to warehouse rent, security, product handling, and staff maintenance. An effective inventory management system helps understand the sales market trends to provide more accurate forecasting data for appropriate product management. 

 

Flexibility

A sound inventory management system can adapt to situations. It helps companies generate several metrics and be prepared for unpredictable situations like incorrect shipments or delays in delivery by analyzing and solving problems when they arise.

 

Customer Retention

Building trust with customers is vital in the modern marketplace. With a proper analysis of consumer details, product purchases, and other information, organizations can access accurate forecasts for future restocks so that the customers don’t switch to other inventory solutions.

 

On-Time Delivery

It is one of the most important features of inventory management. With online shopping being the norm of the day, customers seek inventory systems that deliver their products on time. As the online inventory system gives the stakeholder access to the product’s current location at any given moment of the day, it helps the sales team provide an accurate estimation of the delivery date.

 

 

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What are the Best Practices for Inventory Management Systems?

While an online inventory management system is capable enough to enhance the productivity of a business while also pushing through inventory limitations, it needs to be set up with a few fundamental essentials during inventory management. They include:

 

1. Distinct location names for each warehouse

2. A software system that can effectively maintain inventory management

3. Clear and easy-to-read labels for products

4. A detailed policy for inventory implementation to be followed across the organization

5. A trained team to support said policies

6. Unique product identification numbers

7. Units of measure for every item

 

 

While following each practice may require some time and money, it is only a matter of days before a good inventory management system starts generating beneficial returns for the company. It is a long-term investment that will pave the way for a solid boost to the company’s overall revenue.

 

 

some people working on laptop

 

Conclusion

The team of employees who work with a company’s stock and utilise the inventory on a regular basis is the most crucial part of building up a solid inventory management system. A set of well-trained resources are always an incredible asset for the organisation. If the people involved in this arena are inconsistent with handling an inventory, the type of software used will make no difference because it will bring numerous hurdles along the way regardless. So, it’s best to be wise while choosing an online inventory management system.

 

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