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What is Inventory Management and How to Track Your Inventory Effectively

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Basant Kumar
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Business is all about inventory. You can only start a business when you have enough stock to offer sales. 

No matter what the size of your Wholesale business and retail busines , you need to manage and track your inventory. Without proper inventory management, you cannot hope to succeed in your venture. 

The concept of inventory management has been there since the very beginnings. Initially, the stocks were managed manually but with technological advancement, inventory management tools have taken over the task. 

Let’s understand what inventory management is and why companies need to manage their stocks.

What is Inventory Management? 

The methods used to monitor and keep track of the stocks is termed as Inventory management. It’s a systematic approach that manages the complete flow of merchandise from sourcing to shipping and everything in between. 

It’s important to integrate a structured method to manage your stocks in order to ensure that your business is on the right track. 

Why is Inventory Management Important?

Inventory management is the measure of how well your venture is proceeding.

Inventory management is imperative to gain comprehensive insights into every detail of your inventory, understand your customers’ needs, and meet their expectations. Monitoring your stocks helps reduce overhead and up-front costs significantly and maximizes your business potential. 

It helps you run your business smoothly, keep your customers satisfied, analyze the company’s performance, saves time, and grows your business.

How to track your stocks?

Effective stock management influences business performance strongly. 

There are many ways and tools to track your merchandise. However, the two major types of inventory tracking methods are;

  1. Manual Stock Management 
  2. Automated Inventory Tracking

Manual Stock Management 

Manual inventory tracking was in practice before the dawn of technology. It’s not in use these days because it’s time-consuming and needs considerable manpower. This method can only be applied for tracking small inventories. 

Manual tracking involves some excel spreadsheets and control sheets. The inventory data is added into the sheets and the documents are updated every time a sales or purchase activity is done.

Manual inventory tracking is an option for a small business or a startup. But it is recommended to automate inventory management from the very beginning even if you have a small business. 

Automated Inventory Tracking

The digital revolution has changed the course of inventory management completely. Numerous inventory management tools are available in the market that have dynamic properties. These tools are scalable and provide support when your business expands.

Here is a brief guide on how to track your stocks effectively.

Choose the right tool for your business

Inventory size varies from business to business. Every business faces different challenges and has different requirements. Understand your business demands and choose the right tool for your inventory management. Explore your market and investigate different tools to make the final decision. 

Make sure to invest in a system that allows customization, so that you can alter the tool according to your business requirements. Consider a tool that supports business scalability. 

Analyze trends and reports regularly

A key feature of inventory management systems is data analysis and reports generations. These detailed reports provide an in-depth evaluation of business performance and help in making more structured business decisions. 

You should examine the inventory reports weekly or monthly to understand data trends and other metrics. 

Make use of inventory forecasting and restocking

Inventory management minimizes manual efforts and automates business processes. Stocks forecasting and automatic restocking are two of the most beneficial features of inventory management tools. 

Inventory management tools help you predict the products that are in demand or low in company stocks based on real-time data. This helps the company to order and manufacture according to the requirement and meet customer’s expectations effectively.

Data security and backups

Automated inventory management is typically cloud-based. They allow you to save your data and access it from anywhere in the world. You don’t need to worry about any data loss as multiple backup options are available in case of any issues. 

Bonus Point

Are you looking for a cloud-based inventory management system that checks all the boxes of being the best choice?

SeeBiz Inventory Management System offers both inventory and warehouse management tools that can be scaled according to your business requirements. SeeBiz IMS offers extensive business solutions, including the below-mentioned features and much more,

  • Inventory management
  • Inventory control
  • Order fulfillment
  • Order processing
  • Packaging and shipping process
  • Real-time inventory valuation
  • Purchase order tracking
  • Barcode scanning
  • Accounting integration
  • Invoicing and billing 

Final words:

Inventory is the asset of your business. You need to manage your inventory in the best possible way in order to make your mark in the business world. Acknowledge the importance of effective inventory management and take practical measures to flourish. 

Manage your stocks effectively and go forward!

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