Real-time inventory management is a challenging task for many businesses. The bigger the business scale, the more difficult it gets to handle inventory in real-time and remotely. Manual inventory management can result in confusion, delays, and human errors. Cloud inventory management is the right solution for such businesses. But what are its benefits and its application? In this article, you will learn about cloud-based inventory management and its benefits in detail.
What is Cloud-Based Inventory Management?
Cloud-based Inventory management is exactly what it sounds like. It is when an inventory is managed using cloud-based software that securely uses data to keep track of inventory. It helps warehouses, factories, and suppliers to monitor inventory and its records remotely and avoid any possibility of stockouts, overstocks, and inaccuracies about delivery.
A manually operated inventory management is complex and challenging. It has certain chances of human error and can result in wastage of products due to mismanagement. That is why an inventory system that can generate real-time reports and update data automatically is very helpful. Most industries with huge warehouses require such technology to handle their inventories.
Why Choose Cloud-based Inventory Software?
An inventory managed manually requires extreme caution and quick updates to avoid delays. Still, there are lots of situations where things go wrong. It is challenging to keep an eye on each item in the warehouse. With efficient cloud-based inventory, you can update your data, reorder and track orders, and manage inventory with stock-out alerts.
It helps in unifying the supply and demand chain and sorting the whole production process. Time and quality management are two of the top priorities for any business, and cloud-based inventory software helps your business to grow in both.
Features of Cloud Inventory Management
Here are some key features of cloud-based inventory management software in India and how it benefits the business:
1. Automation
Automation in warehouses can lift the burden of human labour and help in better utilization of resources. You can set conditions and update them as per your business needs.
2. Digital Picking
Digital picking distributes delivery and order picking uniformly. It makes sure that thousands of orders are processed in the most efficient way to save money and avoid the use of extra labour.
3. Barcode Scanner
A barcode scanner keeps track of inventory items that move in and out of the warehouse. It helps in the quick sorting of orders and saves time and money to operate each item manually.
4. Inventory Control
All inventory control decisions are made to increase profits. Cloud-based inventory management allows you to handle and control inventory remotely and improves accuracy.
5. Demand Forecasting
With better tracking and monitoring features of cloud-based inventories, businesses can predict future orders and manage warehouses accordingly. It gives information about which products sit on shelves longer than expected.
6. Shipping
Timely shipping is also one of the important features of cloud inventory management. It also automates shipping and helps with better management of inventory.
What are the Different Types of Cloud Inventory Management?
Cloud inventory management has various types. Some of them are:
- Centralized Inventory Management
In this inventory management, stock is centralized when maintained in a single location rather than stored in multiple locations.
- Distributed Inventory Management
Distributed inventory refers to storing the inventory in several distribution centres simultaneously.
With JIT, suppliers work closely with producers so raw materials arrive at the same time as production begins, but no earlier. Maintaining the minimum inventory is key to meeting demand.
- Real-time Inventory Management
In real-time inventory management, sales and purchases are recorded using software automatically.
Benefits of Cloud Inventory Management
Cloud-based inventory management has many benefits. It avoids extra labour costs and manages inventory with better transparency and reduced human errors. Other than those, these are the benefits:
- Improves order fulfillment with maximum customer satisfaction
- Increases visibility throughout the supply chain
- Controls the supply chain more efficiently
- Real-time and remote warehouse management
- Increases efficiency and reduces costs
- Increases accuracy
- Creates transparency across the organization
Best Practices for Effective Cloud Inventory Management
Efficient inventory management can be divided into three steps.
Step 1: Maintaining accurate and uniform inventory data
The most important part of inventory management is organizing data efficiently. It includes regular categorization of products, updates, and tracking of items in inventory.
Step 2: Regular inventory audits and cycle counts
Inventory audits make sure that there is sufficient inventory and better efficiency. It also tracks cycles and cost-saving impacts on the business.
Step 3: Use automation and statistics to improve inventory control
It includes improving accuracy through data-driven insights, streamlining operations, and optimizing stock levels.
How to Choose Best Cloud-Based Inventory Management Software
Your business conditions and needs will determine the best cloud inventory management software for your business. Before you buy the software, you should check the following factors.
- It is vital to keep your budget in mind when purchasing software. There are some free cloud based inventory management software available in the market.
- Needs to have an easy-to-use and navigable user interface.
- Should be user-friendly.
- Must be able to connect with your existing e-commerce systems and other applications.
What is the Need for Inventory Management Software?
The need for cloud Inventory Management Software for small business is as follows:
- Using this software, you can track stock, fulfil orders, and predict demand to streamline operations, reduce manual errors, and improve inventory accuracy.
- Businesses can make informed decisions, avoid stockouts, reduce excess inventory, and boost customer satisfaction.
- Businesses can increase productivity, improve efficiency, and reduce costs by using inventory management software, which provides real-time visibility into inventory data and powerful analytics.
Cloud Inventory Management With TranZact
Improve productivity and boost profits using cloud inventory management software with TranZact. It reduces human error and unifies the supply chain as per supply chain management. With effective inventory management, businesses can improve sales and achieve market dominance and customer satisfaction quickly.
FAQs on Cloud-Based Inventory Management
Q1. What are the four types of inventory management?
Inventory management can be divided into four types:
- Periodic: Periodic inventory systems allow companies to keep track of inventory levels and costs.
- Perpetual: By automatically recording every purchase and sale of stock, the perpetual inventory system keeps track of stock levels.
- ABC analysis: There are three categories of inventory in ABC analysis: "A" items, which are tightly controlled and have good records; "B" items, which are less tightly controlled and have minimal records; and "C" items, which have minimal records and the simplest controls.
- Just-in-time (JIT): The JIT inventory management system involves ordering supplies from suppliers only as they are needed.
Q2. What are the three types of inventory management systems?
Inventory management can be divided into three types:
- Periodic inventory: Businesses can track inventory levels and costs by using periodic inventory systems.
- Perpetual inventory: The perpetual inventory system tracks stock levels by automatically logging every purchase and sale of stock.
- Just-in-time inventory: A JIT inventory management system involves receiving supplies only as needed from suppliers.
Q3. What is an ERP inventory system?
The ERP inventory system is a cloud-based inventory management system used to track and manage inventory within an organization's supply chain.
Q4. What is SaaS inventory management?
SaaS inventory management automates and improves inventory tracking for businesses through cloud-based solutions.
Q5. What is better, manual inventory management or cloud-based inventory Management?
Cloud-based Inventory management is more straightforward, error-free, and user-friendly than manual inventory management. It regulates and tracks inventory better and keeps an eye on each product present in the warehouse.
Q6. What is inventory management using Excel?
Inventory management using Excel is an inventory management technique to keep track of items using an Excel sheet. It is similar to the pen-and-paper inventory management mode, but it uses Excel instead.
