What Is Inventory Management Software? How Can It Help Your Business Grow?

If you own a business that must maintain inventory, then you already know what a huge asset it is. Inventory can be the materials for your products, the products that are in the stage of being made, or the completed products. They are the way your company creates revenue and without it, you would be out of business.

If you know the importance of your inventory and you are not currently using inventory management software, then how do you keep up with it all? Additionally, how well are you keeping up with inventory?

Poor inventory management is a major reason why small businesses fail. In fact, according to the SBA, it is one of eight top reasons for small business failure. This fact alone makes inventory management software an essential part of successful businesses.

What Is Inventory Management Software?

Inventory management software is a program you can utilize within your company to track, organize, and manage various inventory components. This includes inventory levels, product sales, purchases of materials, and any other production processes you may have. Without inventory management software, you are forced to maintain all of this date with physical paper and there is a lot of room for human error.

With inventory management software, the use of barcodes or even radio-frequency identification, commonly referred to as RFID, can track shipments as they arrive, where they are in transit and even with they leave your facility. This type of system allows you to free up more time for other business uses and makes tracking a very basic part of your business. Adding this one simple system can allow your business to grown substantially over the years.

How Can Inventory Management Software Help Your Business Become Bigger and Better?

GrowMap has previously published content that emphasizes how important systems can be to improving your business and inventory management.  Choosing the best solutions to manage your inventory are no exception. To become better as a business, you need a better way to manage the business.

According to an analysis by Management Science:

65 percent of 370,000 inventory counts from 37 retail stores were inaccurate. Click To Tweet

This inaccuracy of inventory counts can lead to more error which can result in stock outs, lower response to demand, and much more. Your inventory turnover ratio can improve with inventory management software because you will better know how much inventory you have and run a lower risk of under or overstocking.

You will begin to see a better ROI for your business in multiple areas. Some of these areas include inventory management, better use of warehouse space, maximizing labor of employees, making your customers happier, and reducing wear and tear on your fixed assets.

Bottom line: you are better off with an inventory management system if you manage inventory for your business. Many businesses are scared of incorporating inventory management software because of the cost of switching. However, if you take a look at the money you are losing from not managing your inventory efficiently, how can you afford to not have inventory management software?