Savvy small business owners know when to use tools to make life easier, including inventory management software. But what is inventory management software, what problem does it solve, and how do you choose it?
The Problem: Local Businesses and Inventory Management
Small businesses face a number of challenges when it comes to inventory management, many similar or identical to those that larger businesses face. The issue is that small businesses may not have the resources to overcome these challenges like a larger company would.
The following are some of the biggest inventory management challenges for local businesses:
- Lot tracking issues: Lots are groups of products with similar characteristics, whether that’s the source, expiration date, or another factor. Lot tracking involves labeling and tracking, a task small businesses don’t typically have the resources to do.
- Inconsistencies in inventory levels: There are plenty of opportunities for inconsistencies in inventory levels, such as differences between items in the system and those on the shop floor or in the back. Local manufacturing businesses may also have inconsistencies between the manufacturing numbers and inventory.
- Irregular inventory inspections: Inventory inspections are a good way to minimize inconsistencies, but some small businesses don’t practice these regularly. If you have too many tasks to perform, inspections can get neglected.
- Infrequent internal audits: Just like inspections, internal audits must take place regularly, but they can sometimes be skipped, given the bulk of operational tasks that comes with small businesses.
- Supply chain coordination: Depending on your budget and suppliers, it can be hard for small businesses to coordinate the supply chain well.
- Over-reliance on spreadsheets: For small businesses looking to cut costs, spreadsheets are a popular tool for inventory management. But you can quickly end up with dozens of spreadsheets that are disorganized and inconsistently updated. This solution is also not scalable.
- No strategies: Every business needs to be prepared if an issue with the inventory arises, such as those inconsistencies. However, small businesses don’t always have a plan in place.
The Solution: Inventory Management Software
Nearly all the inventory management challenges that small businesses face can be overcome or improved by inventory management software. The best inventory management software can automate many of the functions and help you keep better records.
Simply put, inventory management software is a piece of software that automates various tasks related to managing the inventory and warehouse. This inventory software streamlines the tasks you need to complete to track inventory and handle reordering. With a good inventory management software, you can easily check the status of your stock at any time.
What to Look for in an Inventory Management Solution
Since numerous inventory management solutions are available, it’s crucial to learn how to choose the right inventory software for your business.
Inventory Tracking
Start by looking at the inventory tracking available in the inventory software. This will be the primary purpose of your system, so you need to make sure it can meet your inventory management needs.
Barcode Scanning
One of the most efficient ways of updating information in the inventory system will usually be scanning barcodes. So, always look for inventory management systems that support barcode scanning.
