Lower Your Costs by Using Inventory Tracking Software
Importance of Inventory Tracking Software
Inventory tracking software has been designed and developed to help organizations achieve a good amount of cost savings while facilitating a perfect balance between faster product availability and lower carrying costs. Inventory is one of the vital balance sheet items as it ties up a substantial amount of capital and sits in the warehouse waiting to be sold. Most companies spend 60% of their margins to cover the cost of items sold. Shipping and inventory are the major areas where 40% of the net sales are spent on. So its best we use a good tracking software.
With the right and relevant inventory management tools, companies can eliminate these issues and experience real-time inventory visibility, automatically reorder points, demand planning, and great procurement. These tools enable companies to effectively eliminate the emotional aspects of inventory management by providing warehouse staff with real data and insights. They encourage supplier relationship management and facilitate a more streamlined and authentic inventory management approach.
How does inventory tracking software help wholesale distributors?
Inventory management tools that are perfectly converged will transform the individual wins directly into cost savings. Wholesale distributors who make use of these tools and solutions are experiencing decreased inventory carrying costs. So let’s see how they are achieving this:
Inventory tracking software makes use of real-time visibility
If a company exactly knows the stock at any given point in time, it can eliminate the chances of a black hole, which is common in manual inventory management. Inventory tracking software takes the guesswork out of the process and helps companies optimize their supply chains while watching out the product movement. This way, business efficiency is elevated and inventory carrying costs are decreased, leading to customer satisfaction.
They leverage demand planning
Amazing foresight is essential for effective inventory management. Companies should have an idea of what their customers want, and where they will need to delivered. With effective inventory control software that integrated with demand planning, businesses can predict demand for certain products at particular points in the supply chain. This way, companies can ensure better inventory levels, an optimized website, and lower carrying costs.
They set automatic reorder points
In this fast-paced competitive world, businesses can’t stay without needed inventory. Inventory management tools include automatic reorder points that facilitate automatically generating purchase orders when the company hits the ‘reorder point’ on a given product or raw materials. This way, companies can experience consistent inventory levels, lower over-ordering, and reduced safety stock levels. These elements are equal to major cost savings in the long run.
It helps avoid out-of-stock
Today, customers expect their orders to delivered the next day or within two days. So, companies are trying their level best to avoid out-of-stock circumstances. With the right inventory control software, companies can avoid the guesswork and enjoy more control over their business operations. This results in eliminating the ‘stockout’ label that manufacturers, distributors, and retailers scared of, and helps generate repeat customers, and saves money and time.
It ensures sufficient stock on hand
An efficient inventory tracking software will move between locations, receive products to the warehouse, tack sales and stock levels, and provide excellent control over inventory replenishment. The inventory tracking software ensures ample stock on hand for companies to accomplish any anticipated orders while maintaining minimum excess stock and enhancing the organizational bottom line.
FAQs
Q. What is the role of inventory tracking?
Ans: Inventory tracking involves inventory management tools and methods that help check how raw materials or end products are moving through the supply chain. The purpose of inventory tracking is to facilitate the right inventory levels to meet customer demands.
Q. What are the different methods of tracking inventory?
Ans: Companies that maintain an efficient supplier relationship management system can track real-time stock levels. Inventory is tracked using methods like, First-in-First-out costing, Last-in-Last-out costing, and weighted average costing.
Q. How an inventory tracking software work?
Ans: Inventory management tools use barcodes to assign numbers to the products they sell. Many data points can linked to the number, such as the supplier, product dimensions, variable data, weight, and the available stock in the particular item.
Q. Is inventory tracking necessary?
Ans: Inventory tracking is essential for every seller to identify the exact location of their products and the time when the shipments will arrive. Inventory tracking is significant in managing inventory turnover as well.
Summary
Tracko is known for offering high-quality inventory tracking software at unbeatable price rates. Track your inventory and make daily business operations seamless and effortless. Choose from different packages and price rates and track your inventory in a breeze. Visit our website, go through different packages, and pick the most suitable inventory management tools for your business. We are here to provide you with the right software based on your needs and preferences.
