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Manual inventory management presents several challenges, including inaccurate data, visibility issues, and human errors, which can lead to stockouts, overstocking, and operational inefficiencies. Learn how to leverage the best inventory control technology to alleviate these issues.
Key takeaways
- Effective inventory control can help minimize losses, improve customer satisfaction, and improve finance management.
- Manual inventory management presents numerous challenges, including inconsistent tracking, limited visibility, stockouts, and overstocking.
- Leveraging digital technology enables businesses to track inventory in real-time, automate inventory management processes, and improve overall efficiency.
Inventory control is no glamorous task, but it is vital to business success.
That's why businesses spend countless hours checking and re-checking their inventory levels. Unfortunately, manual inventory management isn't effective or efficient, especially for companies that stock multiple products.
Even the most experienced employee is bound to make a mistake when checking inventory. And this can lead to all kinds of issues, including stockouts, overstocking, and operational inefficiencies.
Times have changed.
As a forward-thinking business owner, you should embrace modern technology and adopt the right inventory control solutions. With the right tools and systems, your business can streamline inventory management to boost operational efficiency, customer experience, and overall productivity.
In this article, we delve into the role of technology in inventory control, exploring the various ways it can help minimize operational inefficiencies and optimize processes.
What is inventory control?
Inventory control or management tracks available stock to ensure you have enough inventory to meet customer demand. When done right, inventory management can help identify and respond to trends.
This further ensures sufficient stock levels to meet customer demand without running the risk of holding too much or too little merchandise. Incorporating proper inventory management systems can present the following benefits:
- Increased profits
- Reduced dead stock
- Time savings
- Improved finance management
- Better forecasting
The problem with manual inventory control
Despite being the oldest form of inventory management, manual inventory control presents numerous challenges that, if not addressed, could negatively impact a business’ operations, leading to customer dissatisfaction and financial losses.
Other common setbacks of manual inventory management include:
1. Inconsistent tracking
You may have difficulty keeping track if you have a large inventory with varying product types. What's even more concerning is that redundant, manual inventory management processes like spreadsheets are exceedingly time-consuming and vulnerable to errors.
2. Inefficient warehouse management
Warehouse management is a cumbersome, labor-intensive process that involves several methods, including receiving and storing products, packing, and shipping.
The sheer amount of time and resources required to facilitate these processes manually can increase your business's operational budget and leave room for error — challenges that can be effectively addressed using an automated, omnichannel inventory management system.
3. Limited visibility
Imagine a situation where you have so much inventory that you can't locate specific items in your warehouse. Such a scenario could lead to inaccurate, incomplete, or delayed shipments. In a fast-paced business environment where 98.1% of customers say delivery experience affects their loyalty to a brand, disappointing your customers could mean losing them entirely.
4. Stockouts and overstocking
In a general supply chain process, businesses order new stock once old stock is significantly diminished. Errors emanating from manual inventory management could result in stockouts and overstocking, impacting your cash flow and increasing storage costs.
Using technology for optimal inventory control
Leveraging the right tools and technological systems streamlines inventory control processes and eliminates human error. Ultimately, this results in a more accurate, efficient, and effective inventory control process.
Here are a few ways technology is revolutionizing inventory control.
1. Automation and digitization of inventory control processes
By leveraging specialized software and systems, businesses can automate inventory management processes, including tracking and recording orders, calculating stock levels, and generating reports.
When done right, automating your inventory management processes can present numerous benefits. For instance, it will improve the accuracy and consistency of inventory data, effectively reducing the risk of errors and omissions.
Automation can also reduce the time and effort required to control inventory, allowing businesses to allocate extra resources to other beneficial tasks.
Similarly, digitizing inventory management processes allows easier collaboration among stakeholders and departments. It also facilitates faster and more efficient reporting and data analysis.
This is in addition to the endless possibilities for integrating your inventory management system with other systems, such as POS and CRM software, to improve overall efficiency and coordination.
2. Real-time tracking and visibility of inventory levels
One of the most notable benefits of inventory management is the ability to track inventory levels in real time. With this capability, businesses can ensure they have enough stock to meet customer demand and reduce the risks and costs of understocking and overstocking.
Inventory management software, for instance, allows businesses to track and record all inventory, including specific product details like descriptions, location, quantities, and expiry dates. Some of the best systems also provide real-time updates and alerts on inventory levels, allowing businesses to respond promptly to changes in demand or supply.
3. Improved efficiency and accuracy through data analysis and reporting
Data analytics and reporting present some of the most effective ways to improve the accuracy and efficiency of your inventory management processes. Specialized tools and software allow businesses to collect and analyze vast inventory data, including stock levels, sales, purchases, and demand patterns.
For instance, business intelligence (BI) software can allow businesses to visualize, organize, and analyze their inventory data, leading to a more comprehensive view of business performance. It also enables companies to identify trends and patterns more easily.
Transform your inventory control practices with the right tools
Manual inventory control is an outdated and inefficient way to track and manage stock. It takes tremendous time and effort and leaves room for human error, which can negatively impact performance, finance management, and customer satisfaction.
However, by leveraging the right tools and systems, businesses can eliminate some bottlenecks associated with manual inventory control methods. For instance, specialized inventory management and business intelligence software can help companies to track inventory in real time.
A trusted technology solutions provider will know what it takes to make your business successful — and have modern and technologically advanced inventory tools to help you achieve that goal. With years of experience in product distribution and turnkey deployments of IT networking solutions, a tech partner can help you choose the right system and set it up for you.
Contact us today if you're ready to embrace the modern age with intelligent inventory management systems or need advice on selecting the right tools.
