Are you tired of managing several inventories for a single company? Are you a freelancer who is already confused in managing different inventory accounts for several companies? If yes, then you should be grateful to the advancement of technology. The emergence of inventory management software is on the top list to give thanks to. The second goes to some other applications that help you manage your inventories, may it be small or large in scale.
Whether you are a huge business tycoon who hires someone to manage your inventories, a small-time businessman, or a freelancer offering services in managing several accounts’ inventories, know that a software is made for your own convenience. You only need to realize and categorize your needs when it comes to managing your inventories. First, let’s classify the kind of people that may need help in managing their inventory.
Types of People Who Need a Good Inventory Management:
- Small-time business owner – these are store owners wherein the nature of the business is selling goods. They need help in managing their inventories such as goods for selling. Especially if they have goods that have an expiration date and other available stock for disposal. An efficient inventory system is needed so that these people can effectively sell their product and order one before they run out.
- Big-time business owner – they are those who are involved in a huge distribution of goods may it be locally or internationally. Having a good inventory system can ensure the smooth flow of the distribution and allocation of goods. Since these people have a huge market, a simple inventory management design is not suitable. So, these are the people who most likely to hire people to do the inventories or to purchase a comprehensive inventory management software.
The inventory system is very useful to business owners especially those who get their income from the goods they sell. A good inventory management is beneficial also to various companies since failure to take account of all your assets may cause you a huge amount of money. But how can you have an efficient and effective inventory management? What are the elements of a good inventory management?
Elements of a Good Inventory Management
There are several things to check if you have created an effective inventory management system. A missing element may cause failure in managing your inventories. So if you’re planning to create your own system, take note of the following elements in creating an effective inventory management system.
- Easy to use. A good inventory system should be easy to navigate and not very complicated to look at. Seeing the basic information immediately is also a positive sign of a good inventory system. The basic information elements are the product/unit, location, date of acquisition and date of expiration (if applicable).
- Product description. Make sure to provide a description to each and every product or item you have in your inventory. It could be a short or long one. It doesn’t matter as long as you’ve provided something that would immediately remind you about the product. Some items have the same name but different use. So, it is just important to provide a descriptive statement about each and every one.
- It is important that the location of the item/product be provided in an inventory statement so that it would be easier to locate. Especially when an incident arises that it needs to be relocated or be disposed of.
- It is effective to put a code for a certain item to set it apart from other product. A unique code can also become the item’s own identity among a large scale of other items with similar nature, feature, and specifications.
- The number of items or products still available is equally important as an element for your inventory. Because of this, you will be able to monitor the items that need restocking and items that are not saleable.
- Everything must be coordinated and organized. There should be a standard unit of measurement used for everything. For example, the length is measured by inches so all the item with length measurement should follow the standard unit of measurement: inch. The same rule applies to weight, height, distance and other units to avoid confusion.
- Time-in, Time-out. Every item in the inventory should be accounted for, including the time the product has been acquired or let go. In this method, items that are perishable should be disposed of before it expires. By doing this, you can avoid losing money. It is also important to provide information if the item has been transferred and the reason behind every action should be documented.
Another key element in a successful inventory management is the presentation of sale data or the point sale system, as presented by Peter Drucker, a recognized management guru known worldwide. According to him, “if something could not be measured, that something could not be managed.” So, several formulas were introduced to measure the effectiveness of an inventory management system.
Most of the time, several big corporations have different departments that cater to the creation of the company’s inventory. But due to the advancement in technological aspect, there has been an emergence of companies that offer software services. This can help other companies manage their inventories.
Getting an inventory management software is an option for companies that need help in managing their comprehensive inventory system. Aside from the reason that it is more cost efficient for them, services offered include a worry-free solution. Inventory inputs to the staffing are being done by the external company as part of the services they offered.
Tips for Choosing the Right Inventory Management Software
With the proliferation of companies offering inventory management services through software or external employees, businesses are facing a different dilemma on which company to choose from. What are the characteristics of a company that can serve your interests better than other that offers the same service? The following are some tips on how to choose the right company for your inventory needs.
TIP #1: If you are a business that is just starting up and decided to get the services of an online inventory management or company, try to check the company by signing up for their free trial services. Most of the companies that offer inventory management software have a free trial to check if their clients would be comfortable with their software. It also works with the business owners who want to try first if what the software is offering suits theirs. So if you are looking for the perfect inventory management software, look for companies that offer free trials. The trial can last from 30-days to 90-days.
TIP #2: It is important to check if the company offering inventory management software is ideal for small-sized, mid-sized or big-sized business enterprise. This way, you will be able to compare what they offer to the kind of business you have. You will also know the capacity and limitation of an inventory management software company based on their services offered. For example, a software built for small-sized business enterprise would have difficulty in meeting the standards of a mid-sized business enterprise. They may be lacking or insufficient to fulfill the needs of a mid-sized business.
TIP #3: Check for companies that offer both cloud and desktop software for the inventory management software. This helps you synchronize the content to your mobile phone. At the same time, you have an instant access to your inventory anywhere, anytime. Mobilization would make your work easier to accomplish and to meet deadlines on time.
TIP #4: Read about reviews and other comments by other people who had a firsthand experience with the company. The review may be coming from past clients or people who experienced the software themselves. By reading reviews, you’ll be able to check what the things other clients have to say about the company. You can check candid response and testimonial that can help you decide better on which company to choose from.
TIP #5: It is also a good advice and practice to check websites that offer unbiased review about software or other product. They may be a ranking website or a website that allows people to share their inputs about a certain company or brand.
Wrap Up
With several ways in which we can manage our inventory, there is no excuse now on how we can manage them effectively. The right way is just around the corner, it is up to you on what is the right way to manage your inventories. You may create your own method or get the services of an external company. Depending on your chosen way, just make sure to follow the tips and guidelines stated above for a successful inventory management.
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