Slashing Your Costs: 4 Benefits of an Automated Inventory System
Trying to streamline your business operations and keep errors to a minimum? An automated inventory system could be the perfect next step. Find out the advantages it can offer your business.
You love almost everything running about your small business.
You get to interact with customers, choose the items that you want to sell, and hire the employees you think will help you to grow your company.
One thing that you don’t quite enjoy as much? Manual inventory management.
Just when you think you’re finished, you’ve realized that you’ve made a serious miscalculation — and that you have to start all over again.
It can be a serious hit to morale — and to your profits. Plus, it’s just not efficient.
That’s why you should consider getting an automated inventory system.
But is computerized inventory software truly worth the investment?
Keep reading this post to find out why the answer is a resounding, “Yes!”
1. You’ll Save Money
Let’s just be honest here: the number-one reason that people are so interested in an automated inventory management system is because it’s going to save them lots of money.
But how exactly does it make that happen for your business?
First of all, an automated inventory system helps you to see your orders across all the different channels by which you make sales.
For example, let’s say you have both an online and a brick and mortar location for your shop. Though you might have enough of your most popular sweater on your online shop, you can easily run out of it in your physical store.
If someone comes looking for it, and you don’t have it?
You’ve just lost a sale.
An automated system will let you know when things are running low, so you can re-stock as needed.
Additionally, you know that having to pay for storage space in a warehouse can add up quickly. Not to mention that you’ll be in serious debt if you’re left with a high amount of deadstock at the end of a season!
If you invest in computerized inventory software, you’ll be much less likely to over-order on products that you don’t need.
2. You’ll Get Real-Time Updates
Another one of the biggest benefits of an automated inventory management system?
You’ll be able to get updates regarding your merchandise in real time.
This means that you’ll be able to get a better feel for your sales figures at the end of every work day. It also means that you can let customers know that an item is no longer in stock as soon as is possible.
This is an excellent way to ensure that you’re keeping your customer satisfaction levels as high as they need to be.
Plus, you can also get a much more accurate idea of the average length of your sales cycle using automated software. You know when it comes in, and then how long it takes for it to sale.
You can even use the system to let you know if an employee has not been making their regular quota. The same thing goes if sales numbers go down — you can identify the issue early on and work towards a faster solution.
3. Shipping Is Made Easier
You know that your shipping and receiving order processes are some of the most difficult aspects of your entire business.
It can be easy to make mistakes if you have to handle these things on your own — and late orders will make customers seriously unhappy.
When you get in a new product, all you need to do is scan it into your inventory system, and then it will be stored in the future.
Plus, when you ship out an order fulfillment to a customer, it will be deducted from your current inventory automatically.
And even when a cashier rings up an item that someone has purchased in a physical store?
The inventory will still be deducted accordingly.
This means that your employees won’t have to do the data entry on their own, which leads to fewer mistakes.
Learn more about other errors that can be eliminated with better inventory management techniques on the Idezi website.
And speaking of manual data entry and inventory management…
4. You’ll Lessen the Risk of Human Error
We all make mistakes — but computerized inventory software doesn’t.
First of all, physically counting and monitoring your entire inventory takes tons of time and effort. It also leaves lots of room for human error.
Admit it: as helpful as it would be, we just don’t all have the accuracy of a calculator.
Not only will counting your inventory take less time, it also means that you’ll get more exact numbers. This can help you to identify potential vendor fraud, stop you from losing money every time you re-order, and much more.
Plus, an automated inventory system is also incredibly helpful when it comes to things like estimating your latest sales statistics, understanding your customer demands, and much more.
This way, you’ll be able to create a more accurate budget in the future.
Ready to Make an Automated Inventory System a Part of Your Business?
From helping you to save more money and make more profits to ensuring that your shipping process is in sync with your inventory, we hope that you’ve learned why so many businesses rely on an automated inventory system.
Plus, the process of inventory automation means that you’ll have much more time to devote to the more important aspects of your business, like customer retention and marketing.
Looking for more information about how to grow your small business using the right templates, tools, and marketing ideas?
We can help.
Check out our blog for some of the latest small business trends that you need to grow your profits and keep your customers and employees happy.