What Are The Benefits of Inventory Management For Stores?

Inventory management is the actual planning of purchasing, storing and selling goods, be it raw materials, parts or finished goods, to ensure that the correct type and quantity of goods are available without holding excess goods and holding up cash. When used correctly, inventory control can save businesses money. 

Purpose of Inventory Management?

The purpose of inventory management is to ensure that there are enough goods or materials to meet demand without creating excess or overstocked inventory.

What Are The Benefits Of Inventory Management?

Accurate inventory management is key to running a successful product business. Regular inventory tracking helps prevent stock errors and other issues. Inventory management provides the following benefits:

Improved Inventory Accuracy:

Having solid inventory management allows you to know what you have in stock and order only the amount needed to meet demand.

Reduced Risk of Overselling:

Inventory management helps you track what you have in stock and what needs to be reordered, preventing you from overselling products.

Reduced Costs:

Inventory costs money until it is sold. Storage costs include storage and transportation costs, insurance, and employee salaries. Inventory is also at risk of theft, natural disasters, or obsolescence.

Avoid Stock-Outs and Overstocks:

With better planning and management, businesses can minimise the number of days that products are out of stock and avoid overstocking. For more information on how to solve out-of-stock issues, keep a check on Inventory Management.

More Insights:

Inventory tracking and inventory management also make it easier to identify sales trends and track recalled products and expiry dates.

Better Terms with Sellers and Suppliers:

Inventory management also gives you insight into which products are being sold and in what quantities. Use this knowledge to negotiate better prices and terms with your suppliers.

Improved Productivity:

A good inventory management solution saves you time that can be spent on other tasks.

Increased Profits:

A better understanding of stock status and demand improves inventory turns, which leads to increased profits.

More Organised Warehouse:

An efficient warehouse, where items are organised and often sold together based on demand, reduces labour costs and speeds up order fulfilment.

Improved Customer Experience:

Customers who receive their orders on time are more loyal.

Proper inventory management plays an important role in your business, and having constant visibility into your inventory is key to success. With the right tools, decision-makers can effectively manage inventory and reduce costs.

EPOS Direct offers a suite of native tools for tracking inventory across multiple locations, determining reorder points, and managing stock and cycle counts. Demand planning and sales demand planning capabilities also help you find the right balance between demand and supply across your business.