Perhaps the single biggest factor in the ability for a business to grow is how the inventory is managed. Not having enough inventory on hand means customers will simply shop somewhere else, often never to return. Having too much inventory means a large upfront cost in working capital that may limit abilities to take on new contracts or to expand into new markets as opportunities arise.
The solution to this problem comes in the form of inventory optimization software. Think of this as a software program that understands your business model and offers comprehensive inventory management across multiple locations, warehouses or facilities.
What it Does
All inventory optimization software is designed to keep a continual, real-time accounting of all inventory from the largest to the smallest parts, components, products, and items. This is maintained across the entire business network.
As parts or items from inventory are used, the software records and tracks the depletion from the available inventory. It will then help to analyze and evaluate if the stock has to be purchased or could be moved from another location where there is a surplus. It will also provide notification if there is an abundance of stock over pre-selected levels.
The software is able to make a big picture assessment of the current levels of stock and evaluate or analyze the lowest cost option for reordering when required.
What to Consider
A big consideration with any inventory optimization software is the ability for the new software to integrate and operate with your existing Warehouse Management Systems software or with Enterprise Resource Planning software and applications.
It should also be accessible from a variety of devices with state-of-the-art security and data protection features. It will also be important to choose a system that is intuitive to use and that will not require extensive training to get the necessary managers and team members fully confident in using the technology.