Cloud–based inventory management is the monitoring and maintenance of a business’s inventory levels using online software, to streamline the process, and eradicate challenges that arise from traditional inventory management methods.
It seamlessly integrates multiple aspects of a business process by providing instant stock level updates to help realize its demand forecast and avoid stockout issues. More importantly, a cloud-based inventory management software, reduces human errors, zeroes down the risk of duplication, missed orders, or any incorrect information, thus saving them time and resources of a business unit.
Manual vs. Automated Inventory Management
Small businesses often turn to manual options like Excel, to manage inventory for their business.
46% of small to medium-sized businesses still use pen and paper for stock tracking!
While manual tracking alternatives may suffice for a startup, as a business and its inventory grow, it can become quite a challenge that can ruin a budget if the business fails to deal with them.
DID YOU KNOW?
Companies in the U.S. hold $1.43 in inventory for each $1 they create, thanks to poor inventory management!
In today’s competitive markets, no company can afford to throw money away with such tight margins. A company has to invest in a more organized system to beat these challenges. Hence, the need for a dedicated inventory management system.
Benefits of using a cloud-based inventory management system
The world has experienced a dynamic shift in business technology. The business world has experienced tremendous growth in e-commerce, and consumers are choosing to shop online instead of getting to physical stores. Hence, it’s crucial that companies realize cost-effectiveness, logistics, and time utility to stay competitive. The adoption of cloud-based inventory management is a means to accomplish this effectively.
A cloud-based inventory management system is meant to scale back costs, increase capital efficiency and improve customer satisfaction, which comes alongside operational efficiency, cost-saving, and lots of other benefits to the supply chain.
Let’s look at some of the benefits of employing a cloud-based inventory management system:
- Convenient inventory update: The cloud-based inventory management software framework can be accessed from any place with an internet connection. This means that if you run multiple businesses in several locations, you do not need to make inquiries through the phone, as the updates made are going to be evident all across. Besides, the cloud is accessible from any operating system.
- Improved visibility: With cloud-based inventory management software in situ, the business owner can keep track of the inventory and stock movement across all channels. It helps reduce out-of-stock incidences.
- Improved customer service: Excellent customer service is an important pillar of any business’s success. Cloud-based inventory management enhances customer service to a great extent. It avails the right levels of stock to customers, serves available customers, recognizes loyal customers, and has shipping options to the customer’s premises.
- Automation: The approach allows checking inventory for quick and informed decisions in a business organization. It also automates the supply chain, for example, the execution of an order can be done without necessarily involving human labor.
5. Safety and security: A cloud-based inventory management system enables and ensures the security of valuable information of a business. Constant up-gradation of software ensures security against any kind of unauthorized access and data manipulation resulting in erroneous report generation of demand forecast, current inventory level, etc. since any changes made are saved in real-time.
6. Cost-effective: Employing cloud-based software for inventory management not only saves a huge chunk of time, but also a considerable amount of cost. It further saves organizations from manual errors and inaccuracies in processes. The real-time sync helps keep things in order, and everyone on the same page. The automation also helps save extra dollars which would have otherwise been spent on hiring personnel.
7. Real-time visibility: Effective cloud-based inventory management system enables ready to relay real-time processing, i.e., Order execution, selling process, and dispatch of the products to customers.
Records are as good as data input into a system. Improper data input results in inadequate report generation. A fully automated inventory system may result in reduced physical inventory audits. However, it is important to continue to do regular physical audits to identify losses such as spoilage or breakage.
Considering the present-day business scenario, a cloud-based inventory management system is advisable across ecommerce businesses, regardless of their size – smoothening operations across all departments, resulting in persistent growth.
In conclusion, introducing cloud-based inventory management software to your business will result in an exponential growth of the same, once the initial hurdles are taken care of, and streamlined operations.