Online inventory management system

Online Inventory
Management System

Contact Us: M: +91 9611 171 345
Online Inventory Management System
Copyright Reserved @ 2019 SalesBabu Business Solutions Pvt Ltd. Website:
www.salesbabu.com Email: sales@salesbabu.com
As inventory management system has become more of a necessity for businesses
and it is being widely used in a variety of industries from manufacturing to utilities,
healthcare, education, government, and more.
These material management software have come a long way when it comes to the
history of using the inventory system. Inventory in the earlier days was managed by a
system known as cardex system. These cards were read and updated once an
inventory was moved from a location. Apart from these cards, books or registers
were maintained to note these transactions and reports manually.
This system was quite basic and time consuming for the employees and had led to
many human errors and product losses.
A new revolution was created with new online inventory management system
software where intelligent applications manage the inventory, help in analysis,
categorization and to a large extend reduce human errors, product damage and
theft.

Contact Us: M: +91 9611 171 345
Challenges of Inventory Management Systems
Inventory management systems is a great tool to improve your business productivity and
process eﬃciency when implemented properly. Most of the challenges associated with
inventory management systems are seen when the best practices are not followed and the
organisation still rely on manual documentation and inconsistent storage layouts to
maintain their stock entries.
A good inventory management system uses automated software approaches to reduce
human error and eliminate manual workloads which can cause some of the below issues:-
● Having mismanaged stock count and unorganised process to follow stock upkeep.
● Out of stock cases where demand supply is disturbed and customer relationship is
damaged.
● Manual documentation errors which causes incorrect product and vendors tagging,
incorrect no. of spare parts and many such issues.
● Human resource wastage due to repetitive manual ways of inventory management
and warehouse look after for product tagging and rotation.

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Beneﬁts of an Inventory management system
Increased sales
A good inventory management system will keep a track of products, vendors, spare parts,
stock availability and many other details in a cloud based centralised database. This
database are accessible by every stakeholder in real time. Once the sales and marketing
team have clear knowledge about how much of an item is in stock, where it is, and
consequently, how fast it can be delivered to the customer, they will be in a much stronger
position to make a better sales deals and customer service level.
Sales and marketing team can provide a clear picture of the products delivered using
Challans and product GRNs to keep visibility for the closing sales and negotiate eﬀectively
for better business deals.

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continues...
Reduction of costs
Another beneﬁt of having an online inventory management system is
saving on inventory costs. Inventory maintenance and upkeep costs a
lot of money to companies. Many traditional business incurs huge
losses due to damage of products, wear and tear due to climate,
expiry and other manual mishandling. Other extensive expenditures
are cost due to warehouse rent, staﬀ maintenance, security,
transportation and other product handling reasons.
The key to minimizing these costs is to have an adequate amount of
stock in our warehouse which strikes a balance between the over
stocking and understock cases. The stock holding cost can be
reduced by maintaining an appropriate amount of stock which can
reduce our transportation cost considerably by avoiding reordering of
same products repetitively. A good inventory management system
helps to understand your sales market trends and keep a track of
product ware and tear history to provide better forecasting data for
appropriate product ordering.
Also, with proper rotation of goods by maintaining order history and
delivery dates, we can considerably reduce our wastage ratio and
improve business revenue.

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continues...
Flexibility
The key advantage of a good inventory management system is the
ability to be ﬂexible and adapt to situations as they arise. Every
business in the economic market whether its medicine, transport,
education or other will have its risk and unpredictability involved.
Similarly, inventory management businesses have some unpredictable
situations like as incorrect shipments, warehouse accidents,
manufacturing issues and theft which cannot be avoided and create a
major hit on business cost.
With an inventory control system, we can generate numerous metrics
which can help us to be more prepared for these situations by
analyzing and solve a problem as soon as it occurs.

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continues...
Demand Forecasting
Demand forecasting is a fundamental key to planning what and when
to order so you allocate resources wisely and get the most out of our
purchases. Analysis and metrics report in inventory management
system help to plan our product storage based on the demand of
products, customer preference and many other details which can
organise our demand and sales supply chain.
Warehouse Management
Online Warehouse inventory management system help to manage
inter warehouse transfers, generate reports for products and raw
material in each warehouse, analysis on product stock level and other
product details at our ﬁngertips which is very useful to manage our
regular warehouse work.

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continues...
On-Time Delivery
On time delivery is the most important feature of inventory
management software systems. With online and retail marketing on
the rise, customers are looking for inventory systems which not only
organise their daily inventory jobs but also help in on time delivery to
its customers.
With these cloud inventory systems, every stakeholder are always
aware of the current status of the product in our stocks and the
timeline of each delivery. These details help the sales team to provide
a realistic outlook on the delivery status and work toward how to
provide on time delivery to its customers.
On time delivery is also very important to create an environment of
trust and long term relationships with our customers to improve our
business revenue.

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continues...
Customer retention
Customer retention is very critical in the modern marketplace, where
consumers have more and more options for changing to quick
inventory solutions.
With proper analysis on the customer details, required products,
vendor delivery commitments, and other information, we can have
accurate forecasts for future stock levels, and prevent product
stock-outs that can cause customers to go elsewhere.
Also, analysing our customer buying trends and other sales data, we
can understand what our customers want and would be needing in the
near future. We can create successful sales and marketing strategies
to cater to their needs by buying a proper amount of stocks to balance
our sales.
Other methods of retaining our customers are through various receipt
like Good Receipt note(GRN) and delivery challans to track product
delivery and the no. of products delivered. These receipts act as proof
of delivery and return acknowledgement forms help to create
transparency with our customers. With the proper mode of
communication over feedbacks and concerns, inventory management
software help to create a better customer relationship with our
customers and continue our business inﬂow.

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Best Practices for Inventory Management
Systems
We do understand that a good inventory management system can
improve the productivity of a business and clearly manage all its
inventory limitations, but only if you set it up with some basic essentials
during inventory management for your products including:
● Proper location names for warehouses.
● Easy-to-read labels for the warehouses and products.
● Unique item identiﬁcation numbers
● Units of measure for every product.
● A software solution that eﬀectively monitors and tracks activity for
the inventory management.
● Clear, company-wide policies and processes for inventory
implementation.
● Trained team to support these policies and software
implementations.

Contact Us: M: +91 9611 171 345
Conclusion
The team of people who work with your stock and use your inventory
system on a regular basis are the most critical part of establishing a
pretty good inventory management system. A well trained set of
resources are always an asset for the business. We should understand
that if you or the people you work with, aren’t consistent about the way
inventory is handled and the way inventory management system
works, it won’t matter what software you use, you will only experience
frustration and failure in your business.

Contact Us: M: +91 9611 171 345
Thank you for Visiting Us
Our Address
SalesBabu Business Solutions Pvt. Ltd.
No.38/11, 3rd Cross, G Block, Sahakarnagar, Bangalore – 560092
Tel: +91 9611 171 345 ,
Mobile: +91 9341 323 571
E-mail: sales@salesbabu.com
Website: www.salesbabu.com

Online inventory management system

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