Inventory management is one of the most important tasks while running a manufacturing business smoothly. It can be very difficult if you do it manually. An automated inventory management system can help you automate inventory management. It can help you avoid issues like overstocking, dead stock, and running out of stock.
An automated inventory management software gives you real-time data on your stock levels and many more useful insights. In this blog post, we will understand inventory automation, its key features, and its benefits.
What Is Automated Inventory Management?
Automated inventory management is a process of using technology to access inventory details. It provides businesses with current and accurate inventory data. It figures out how much of each item is available in stock. This helps you save a lot of time and effort.
Additionally, it allows you to figure out reorder points to avoid running out of stock for demanding products. It ultimately helps small and medium-sized businesses to improve their overall productivity.
Why Automated Inventory Management Is Important?
Automated inventory management is important for businesses. The most important reason is that it reduces human errors and tracks inventory accuracy. If you use manual methods like pen and paper to track your supply chain activities, there is a higher chance of making mistakes. You can make mistakes when inputting data in different systems if you have multiple sales channels.
You can avoid these problems by implementing an automated inventory management system in your business. It will also help you satisfy your customers and improve your business efficiency.
How Does An Automated Inventory Management System Work?
An automated inventory management system monitors real-time inventory levels. It provides accurate data on stock levels, sales, and supply chain activities. It also provides updated inventory counts as products are sold or moved. When a product is running out of stock, an automated inventory tracking system will alert you.
It gives you information on what products to reorder and which ones not. You can integrate this system with other tools like purchase order software and point-of-sale (POS) software. Some advanced automated inventory management softwares may allow you to forecast demands and manage inventory in multiple sales channels as well.
Benefits Of Automated Inventory Management Systems
An automated inventory management system can help you save a lot of time and money compared to manual methods. Here are the main benefits of automated inventory management system:
1. Real-Time Data
The system allows you to see how much stock you have in real-time. For example, if a stock of new products has arrived in your warehouse, it will update automatically. In case you have sold some products, your stock levels will automatically be updated. With accurate inventory data, you can have a balanced stock level.
2. Saves Time And Money
When you count products in your stock manually, it takes lots of time. A manual inventory control system also requires many employees. An automated inventory management system handles many tasks at a time without the need for human employees. This can free up time and resources that you can use to expand your business.
3. Reduces Human Error
It is common for employees to make mistakes while counting products manually. If you hire new employees and let them handle different types of products, the chance of errors gets higher. An automated inventory management software works on high-tech computer programs to provide accurate data.
4. Integration With Other Software
You can integrate an automated inventory management system with other software like purchase order software, point-of-sale software, etc. This helps you manage all your tasks smoothly. When all the departments work together, your overall business productivity increases, too.
5. Decision-Making
With accurate inventory data, you can make more informed decisions. An automated inventory management system can provide accurate, latest data. This gives you live updates on your stocks. It is very helpful when you need to make quick decisions for your business.
Who Can Benefit From Automated Inventory Management Systems?
Automated inventory management systems are beneficial for all types of businesses. Established businesses already use these systems to manage their inventory in different places. Small and medium-sized enterprises (SMEs) can also grow their businesses even more with these systems. But, they are mainly used by:
- Distributors
- Retailers
- Manufacturers
- Wholesale
- E-commerce
Key Features Of An Automated Inventory Management System
Automated systems come with many features. You can use them according to your specific business requirements. Let’s learn about the most important automated inventory management system features.
1. Stock Management
The main feature of automated inventory management software is providing accurate data on your stocks. This allows you to track your supply chain activities at different warehouses. You can avoid stockouts or overstock situations and make informed decisions with this feature.
2. Software Integration
An automated inventory management system is capable of integrating with other systems. You can integrate this system with accounting software, ERP software, E-commerce platforms, and more. It can improve workflow and order fulfilment at your business.
3. Placing Reorders
You can set reorder points on these systems. Once a certain product reaches the set point, the system will alert you to take the manual step. You can also use these systems to reorder stocks automatically.
4. Barcode Scanning
The system can identify your product details by scanning barcodes. It reduces manual errors in product identification. Barcode scanning also saves time when identifying different types of products.
5. Demand Forecasting
An automated inventory system can analyze your sales record for demand forecasting. It uses your previous data on purchasing and sales to predict future demands. You can use your money wisely on your stocks with accurate demand forecasting.
How To Choose An Automated Inventory Management Software?
An automated inventory management system can come with different features. Here are some factors you must consider when choosing the best inventory management software:
- Analyze your business and future goals
- Think about the features you require
- Look at your software’s reviews and reputation
How Can TranZact Inventory Management Software Help Your Organization?
Inventory management is one of the most important aspects of the entire manufacturing process. It has a lot of influence on the efficiency and profitability of a business. TranZact’s inventory management software is designed to streamline this process. It provides accurate and real-time data. It will help you grow your business with its easy integration feature with other systems. This will help you to avoid manual inventory management. TranZact is very easy to use and significantly improves business productivity.
FAQs
1. What is an automated inventory management system?
An automated inventory management system manages a company's inventory without the need for any manual efforts. It provides timely updates on inventory to manage stocks and improve customer satisfaction.
2. What are the 4 types of inventory management systems?
The four types of inventory management systems are;
- Just-in-time Management (JIT)
- Materials Requirement Planning (MRP)
- Economic Order Quantity (ECQ)
- Days Sales of Inventory (DSI)
3. What are the advantages of an automated inventory control system?
The advantages of an automated inventory control system are;
- Greater visibility of stocks in real-time
- Minimized or no human error
- Inventory tracking across sales channels
- Integration with other tools like point-of-sale software
- Cost-effective and time-saving solution
- Improved decision-making process
4. What is automation in inventory management?
Automation in inventory management is using technology to save time by processing large amounts of data quickly and handling tasks with fewer human involvements.
5. What are the 5 stages of the inventory management process?
The five stages of the inventory management process are;
- Ordering products according to the demands.
- Analyzing the quality of products.
- Storing products in warehouses with efficient packing.
- Fulfilling customer orders by delivering products on time.
- Creating purchase orders for restocking.
6. What automation can be used to manage inventory?
Automation in inventory management can be used for demand forecasting, inventory tracking, restocking, etc.
7. Why is automation important in inventory management?
Automation in inventory management is important for reducing human errors and improving customer satisfaction by fulfilling orders on time.
8. Why is an automated inventory management system important?
An automated inventory management system is important to get accurate stock details in real time to make informed decisions for business profits.
