What Is Real-Time Inventory Management? What are it’s Benefits?

Real-time management inventory management

Getting information in real-time has now become one of the pre-requisites to keep business flourishing and to safeguard it from any potential disaster. Bringing more on-time inventory management reports helps in managing inventory, re-ordering products and avoiding over-stocking or stock-outs. Nowadays, it is recommended to deploy an inventory control software that gives data for every sale and purchase.

Inventory Management

What is real-time inventory management?

Real-time inventory management is an automated process that tracks every sale and purchase of the products undertaken by the firm. It gives a complete picture of inventory’s status; its happenings and helps the management to react quickly to supply chain needs. Instead of conducting periodic (cyclic counting) appraisal of stock, real-time recording of transactions that include outbound orders, the costs associated and incoming of new stock. The inventory management software chosen by the small business or firm should also serve as the backbone to all these operations.

Benefits of real-time inventory management:

Most inventory management software like ZapERP and others provide real-time analytics and have the power to radically change the face of how inventory and business are conducted. Listed below are some of the benefits of real-time inventory management.

It eliminates the risk of lesser inventory levels:

When customers place an order for a product, they expect delivery at the shortest time possible along with the availability of the product. An automated system would alert the management to reducing inventory levels and indicate re-stocking. This step will help the business in retaining customers and maintain optimum inventory levels.

Anywhere, anytime:

The option of cloud lets the user access the inventory data anywhere and at any time. Cloud access even comes with security that protects sensitive data from misuse and theft. Cloud-based systems come with real-time updates of every sale or purchase thereby helping the management track the high and low sellers. It eliminates the alternate cyclic counting method.

Reduces cost:

Maintaining inventory and conducting periodical checks is an expensive course of action. Manual errors, misappropriation, and negligence are also rampant. However, an automated system will put a stop to all these practices, and at the same time, it will reduce the cost involved in employing manual labor. Real-time updates enable quicker action and save the amount of time needed to assess the actual levels of inventory.

Knowledge:

Real-time inventory system not only helps in tracking stock levels, but it also lets the management sales and purchase patterns, finding out the most popular products, singling out the seasonal demand products and the slow-moving products, the frequency of stocking and so on. With the help of these reports, it will be easy for the management to take decisions to maintain the profitability factor.

Add-ons:

Other than the above-listed benefits, the inventory management software also comes with additional add-ons like accounting and customer relationship management, cloud-based apps, integration with third-party apps and so on that are needed for the modern world of today.

The primary benefit of implementing an inventory management software is to get accurate real-time stock levels and execute immediate action to correct any situation as they arise. A good inventory software will empower the business with actionable data and reports that assist in auditing, taxation, maintaining quality standards and compliance. The reports will provide the business with rich insights enabling business managers to take the right course of action.

Click here to know more about ZapERP inventory.

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