Benefits of retail inventory software for multichannel businesses
Retail inventory software for business owners
In this age of multichannel retailing, businesses need to stay ahead of the game for better customer satisfaction. One way to do this is to manage different channels using a real-time retail inventory software. For this reason, an efficient inventory management system is critical.
Retailers must unify stock data from their warehouses and their online and traditional shops. A great system ensures that they don’t lose customers and potential clients in any of these channels.
Using the right retail stock management software, retailers can monitor data about their inventory. The type, level, location, and value of their stock per batch are all useful information to improve operations. The software combines data from different channels for use in decision making. Management can choose to replenish or stop orders based on this data.
An inventory system allows them to minimize errors. They can also determine losses, theft, and reconcile inventory records. They can arrange stock to sell on time and at the right price. Retail inventory software and systems streamline operations, reduce costs, and improve profitability.
Differences of having and not having retail inventory systems
There are considerable benefits to inventory software. To explain them better, here are comparisons between having this software and not.
For a business with retail stock management software, here are the pros:
- Track and control inventory
Monitor inventory across different channels. Record the type, batch date, quantity, cost, and location of stock correctly. Assign limits to maintain a healthy stock level. The system automatically notifies management to order more or stop purchasing a particular product.
- Accurate financial reporting
Financial statements are accurate and up to date. Record inventory value, receivables, payables, the cost of goods sold, and net income truthfully. All are important details in the business’s financial statements. Reconcile retail inventory software with the existing accounting system for integration.
- Staff accountability
Inventory management provides detailed records of all transactions by everyone. Trace losses, damage, theft, and errors quickly. Hold people accountable for reasonable claims based on transaction records. View when the stock was received, moved, renamed, and shipped by a particular individual. State-of-the-art retail inventory systems encourage staff to make accurate records and adjustments.
- Organize stock per batch
An efficient retail inventory management software organizes and moves stock based on batch date. This practice prevents back orders and stock underestimates. It greatly improves the cost of operations and increases sales.
- Automate inventory process
A streamlined retail inventory software saves time and prevents errors. Sequentially, it improves profitability. Communicate with suppliers for urgent stock replenishment. Keep customers happy by providing them with what they want, the moment they ask for it.
For a business without a working retail inventory software, here are the downsides:
- Logging errors and incorrect accounting
Outdated pen-and-paper inventory systems are prone to human errors. Examples of errors are accounting slide, omission, addition, etc. These mistakes result in inaccurate financial documents. These errors are damaging to a growing company because of false perception of profitability.
- Tedious recording
Manual inventory systems are demanding to update and keep. Flooding, fire, humidity, dust, and natural wear-and-tear can all destroy important inventory records. Besides, multi-channel businesses must create separate files for their online and traditional shops. Manual inventory increases the need to employ more staff. This translates to a higher cost of keeping stock.
- No accountability
No audit trail exists in an archaic system to record substantial and intentional errors. Therefore, it is prone to exploitation at the expense of honest employees and the company’s profitability.
- Higher risk for losses and back orders
With an outdated system, it is easy to miss old inventory that needs to sell immediately. Managing different channels is laborious. Also, an antiquated retail inventory system is impractical for a growing retail business. Focus more on core business and improving customer service instead of spending time and money on old inventory system.
Now that you know more about all the good reasons to have retail inventory software, why not talk to an expert about a system that would suit your requirements? Our expert will gladly assist.