5 tools every inventory tracking software should have
Inventory tracking software has definitely become an indispensable tool for small and large businesses alike. If you’re into the production, distribution, and selling of goods and merchandise, you will want to track inventory in the least time, cost, and effort. You’ll also benefit from keeping your inventory records constantly updated so you can get a clear picture of all the stocks you have on hand.
There’s more to inventory tracking software than just performing inventories.
While a state-of-the-art inventory tracking system primarily lets you conduct inventory tracking in real time, it also helps your business perform and maintain highly efficient ERP and CRM functions. For this reason, investing in inventory tracking solutions go beyond just running your business processes smoothly; they also help you with cost efficiency, customer satisfaction, repeat business, and most importantly, profit.
To get the most out of your inventory tracking software, make sure it comes with five helpful tools that maximize overall efficiency and output.
1. Barcode scanning
Think of how difficult it gets when you have to encode product details into an inventory tracker by hand. Thanks to barcode scanning, data collection can now be done with the greatest speed and accuracy. That means no more missed transactions, coding errors or delays, just timely and accurate transactions with every laser beep.
2. Cycle count function
Break up inventory tracking into systematic cycles and you’ll get more accurate results. That way, you can count different portions of your inventory during specified periods rather than doing it all at one time.
Pretty soon, you’ll be able to establish a pattern that identifies which items need to be counted and reordered more often than those that move at a slower pace. Cycle counting should be able to eliminate all probable errors that could affect the accuracy of your total inventory.
3. ABC classification
When you have thousands of items in your inventory, it helps to know which ones give the most value to your business. This is the job of an inventory categorization technique known as ABC classification.
Also referred to as ABC analysis, this method applies the widely-used Pareto principle stating that 80% of the total warehouse inventory value is made up of just 20% of the total number of items. Category A items are outstandingly critical or important to the business.
Category B accounts for items of average importance, while the least important ones fall under category C.
ABC classification is crucial in establishing cycle counting frequency. Because demand is not evenly distributed across items, ABC analysis helps identify reorder points to avoid overstocking and under-stocking. It can even help determine where particular items should be positioned to ensure smooth traffic in a warehouse!
All these and more are crucial to fulfilling two vital elements of your business – meeting customer demand and maintaining a hearty balance sheet.
4. Integrated applications for planning and execution
So how do you go about meeting customer demand and maintaining a healthy balance sheet after an ABC analysis? Simply by coming up with a plan and determining the best way to carry this out.
Good inventory tracking software must be able to tell you how fast (or slow) items are moving, when you should replenish, and how much you should have in your inventory at the least costs.
5. Batch tracking and product traceability
It helps to know the DNA of every item you have in your inventory. The same product may have different versions or models that are manufactured in various batches. Some can turn out defective, and it will be a lot easier to trace them in the event of a product recall.
Similarly, inventory tracking software with traceability functions can make after-sales activities like product servicing or parts replacement a whole lot easier. It can also provide vital data such as product life and performance for future product research and development.
Inventory tracking software can spell success for your business.
The best inventory tracking software should come with these five essential tools for effective economic resource planning (ERP). It can spell success for your organization in terms of cost efficiency, improved performance, excellent customer satisfaction, and increased profitability in a highly competitive business climate.
Talk to an expert if you’d like to know more about creating success for your business.