The Advantages of Using Inventory Management Software in Distribution

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Last November we suggested "Strategies for Improving Inventory Management in Distribution/Wholesaling", and this past March we identified the "5 Steps for Improving Demand Planning and Forecasting". This post will discuss why it's necessary, and how to achieve this using inventory management software.

Distribution companies understand how inventory software simplifies the process of managing and tracking stock to improve efficiencies while reducing carrying costs. There is no doubt that the ability to effectively manage inventory levels and track goods throughout the supply chain is critical for distributors of all types and sizes.

But true inventory management software solutions provides much more value to the organization.

Consider these advantages when evaluating inventory software:

* Complete supply chain visibility – when fully optimized, inventory software provides the entire operation with insight and actionable information regarding both inbound and outbound product flows - as well as the added ability to drill down into details if needed.
* Quality management – the nature of durable and non-durable goods is that issues and errors do occur.  Shipments can be delayed, fill rates can lag, packages can be broken.  Inventory software identifies and tracks the various issues that could occur, and through reports and analytics, provides guidance regarding the factors impacting quality.
* Forecasting and planning – inventory management software not only manages "optimal" stock levels at the warehouse, but can also predict your future capacity requirements.  Through insights provided by the software, you may identify the viability of opening multiple regional warehouses located near key customers to increase efficiencies and improve service levels - the right software can help you make that decision.
* Cost management – any product sitting on the shelf is a liability that picks away at your business' profitability.  By managing your stock requirements in real-time and increasing inventory turns, your business can make the most out of existing shelf space to improve margins.
* Efficiency and customer service – optimizing your inventory processes can reduce the amount of time to replenish stock, process shipments, and serve your customers (i.e. "pick, pack, and ship").  All of these efficiency improvements are recognizes without sacrificing quality or increasing head count.
* Scale – as your business grows you will need software that grows with you.  Inventory management software ensures growth without adding a significant amount of hardware or system expenses.  If you enter new markets, introduce new products, or expand your customer base – the right inventory management software solution keeps pace with your business.

It is easy to underestimate the power and value of inventory software products.  For years the solutions provided limited capabilities, and were cumbersome and complex to use.  Many distributors shied away from evaluating inventory software for fear that the new solution would add a layer of complexity to the organization, and recognized benefits would be delayed. Today, however, inventory management software solutions integrate seamlessly with legacy products and into existing business processes. Although some business processes may be fairly involved, providers with demonstrated success developing and integrating inventory management software can simplify the process and translate the most complex requirements into supply chain solutions that deliver immediate results and long-term ROI. Isn't it time to take a look at your current processes and consider integrating or replacing your current inventory management software?

by Green Beacon Solutions

8 thoughts on “The Advantages of Using Inventory Management Software in Distribution”

  1. Hello, Great piece of information over here.
    I completely agree with you. From my point of view, speed is essential in having good customer service. Inventory management software makes your company move faster by improving your warehouse's layout. Inventory management software leads to saved time, saved money and happier customer. It is the powerful tool that your business take advantage of.

  2. For any business, management plays a very important role. The broad management section has this inventory part that creates better prospect for the business and needs to be managed with utmost care and expertise. The time was gone when you do the inventory tasks via old machines. Various softwares & Mobile devices replace old machines drastically for inventory management that run an entire inventory control process smoothly.

  3. Good inventory management software will provide integrated statistical details to identify the current level and preplan for future.

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