5 Tips for Optimizing Inventory with Inventory Management Softwareby Jesse Gamble business
Both wholesale distributors and manufacturers need to be keenly aware of their inventory. Optimal inventory management is key — but are you using the right inventory management software? And if you are, are you using it well?
Here are 5 ways you can be optimizing your inventory using software for greater returns.
1. Integrate Order Entries with Accounting Software
Do your processes involve making duplicate entries for orders? That is, one person enters an order, then later another re-enters the same information to create an invoice. It might not take long to enter order details, but the doubling up will end up costing significant amounts of time — and money — over years.
Your inventory management software should be integrated with your accounting software to allow a streamlined process. Once the order information is entered, it’s in the system for anyone along the supply chain to recall. This will also help minimize the risk in human error when re-entering order details, which could turn into costly battles with customers down the line.
2. Set up Inventory Items with Different Units of Measurement
Some customers will want an item in single units; others might want cases of the same thing; and others might want to order in whole pallets.
To avoid lengthy manual adjustments to account for these orders, set up your inventory items with multiple units of measure. Your system will then be able to calculate how much of an item you have in stock by unit type. This will not only save you time, but also make it easier to buy and sell inventory, and also give accurate responses when customers ask what you have available.
3. Make the Most of Assemblies
Combining small parts to create larger items is common — either combining individual items into a kit, or using raw materials in manufacturing. Entering each and every individual item used in the kit can be a painstaking process with much room for human error.
To save time and improve accuracy, set up commonly bundled or manufactured items as “assemblies”. This way you only need to enter in the completed item on an order — the individual parts will be taken out of stock and accounted for in the background. Inventory count and costs will be more accurate, and you cut down on data entry time.
4. Don’t Forget to Take Physical Inventory
It might seem counter intuitive to suggest physical inventory checks when talking about software. Surely the point is to reduce the amount of physical labor necessary?
Software is only as good as the information it’s provided, and errors are never completely avoidable. Taking physical inventory keeps your information up to date and accurate. Using a system that allows you to take inventory and sell at the same time will also allow you to not break the flow of business. Stock counts are accurate, sales can keep functioning, and customers receive accurate information. Everyone wins.
5. Use Location to Track Inventory
Regardless of your industry, chances are you inventory will move between locations at some time. Is the item on a showroom floor? In a retail space? Is it still in the warehouse, or has it been sent for delivery?
Setting up multiple inventory locations not only helps track where an item is, but can also be used to check the progress of orders. Costly shrinkage can be avoided, and if you can set up unlimited locations, you can even track individual trucks as inventory locations for more precise data collection.
Created on Dec 24th 2018 09:31. Viewed 302 times.