What is Inventory Management?
Inventory management is an efficient way to deal with sourcing, putting away, and selling inventory—both raw materials (parts) and finished goods (products). In business terms, inventory management implies the correct stock, at the correct levels, in the perfect spot, at the ideal time, and at the correct cost and price.
Small-to-medium businesses (SMBs) regularly use Excel, Google Sheets, or other manual tools to monitor inventory databases and settle on choices about orders.
Notwithstanding, realising when to reorder, the amount to order, where to store stock, and so on can immediately turn into a confusing experience. Subsequently, many developing businesses graduate to an inventory management software, app, or system with capacities past manual data sets and formulas.
With these systems, stock management methods stretch out past essential reordering and stock monitoring to include everything from end-to-end production and business management to lead time and demand estimating to measurements, reports, and even bookkeeping.
Importance of Stock Inventory Management
From the product viewpoint, inventory management’s significance lies in understanding what stock you have on hand, where it is in your warehouse(s), and how it’s coming in and out.
Clear visibility helps you:
- Lessen costs
- Upgrade satisfaction
- Give better client care
- Keep loss from robbery, decay, and returns
In a more extensive setting, inventory management likewise gives you a look into your monetary standing, client behaviours and inclinations, product and business openings, future trends, and more.
Advantages of Stock and Inventory Management Software
Inventory management practices can help you to save money and keep a precise stock check.
- Understand inventory levels across the business: Stock management systems can give a start to finish look into orders through all divisions, from deals to bookkeeping to satisfaction. Unified buying lessens duplication when renewing stock, and being able to buy in mass saves money. Further advantages proliferate when you incorporate your inventory software with bookkeeping and administrative centre cycles.
- Robotize manual tasks: Barcode and RFID examining can speed up stock-taking, receiving and satisfaction. Utilising software lessens blunders from manual entries and liberates staff from redundant undertakings.
- More noteworthy visibility with real-time data: The correct inventory management software will give you access to real-time data on all stock keeping units or SKUs in all offices. It will convey this information to all devices, regardless of where you are.
- Improve forecasting: Software that handles data assortment and examination can give insight into patterns and trends. And when you understand patterns, you can improve your stock forecasting.
- Information-driven decision making: Leverage the analytics capabilities of inventory management software to settle on information-based stock choices. Save money by decreasing inventory and carrying costs.
- Backing uninterrupted production: By anticipating both demand and lead time, you can guarantee production never encounters a lack.
- Blend multiple inventory locations: Get an outline of stock levels in the entirety of your warehouses, distribution centres as well as retail locations and suppliers.
- Enhance inventory: A hearty inventory management software system keeps up the correct blend of stock and quantities and at the best carrying costs. It’ll assist you with guaranteeing you never have too much or too little stock on hand.
- Scale inventory as your business grows: You can’t precisely follow 1,000 SKUs in 15 offices physically. Inventory management software can handle that task for you.
- Improve product visibility in recalls: Digital systems permit users to utilise lot number or serial number records to follow products by date and area.
How is myBillBook the perfect stock and inventory management software for you?
- You can upload a complete inventory of the stocks by transferring items from other accounting apps or with the use of excel sheets and images.
- As a stock management software, myBillBook has a feature for automated purchase orders so that if a particular stock is about to reach its lower limit, myBillBook places an order to maintain inventory.
- Our stock management system helps you save warehouse space by assessing the demand for the various stocks so that you can decide whether to repurchase stock that is low in demand.
- Get access to complete stock history as and when you want. Personalise your inventory by organising the stock by categories and adding item details.
Additional benefits you can enjoy with myBillBook
- Retail billing software gets started on creating GST and non-GST inclusive invoices (as per your preference) within seconds. All you need is:
- GSTIN of both parties (if applicable for the party)
- Billing and shipping address of the party
- Consecutive invoice numbers
- Date of issuance
- HSN code of items
- CGST/SGST/IGST on items (as applicable)
- It projects a professional and sophisticated image with professional-grade paper bills.
- You get regular notifications on the status of payables and receivables using our free accounting invoicing app,
- It provides 24×7 access to sale and purchase orders and allows you to monitor them till they’re delivered/received by relevant parties.
- You receive 10+ exclusive reports that ensure smooth functioning of the business, like:
- Sales summary
- Profit and loss reports
- Party statements
- Stock summary
- GSTR-1 (Sales) [paid feature]
- GSTR-2 (Purchase) [paid feature]
- GSTR-3B [paid feature]
- Protect your data with daily automated backup and sync your mobile app with your desktop software. This way, you can access all your records on the go through your mobile phone.
Create purchase vouchers, payment receipts, quotations (estimates/sale orders), purchase orders, sale returns, purchase returns, delivery challans, and expense vouchers from your mobiles.
Read more articles related to the above article
Valuation Of Inventory Guide
Guide To Invoice
Guide To Inventory Control
Inventory Turnover Ratio
Guide To Bookkeeping
Debit Note Guide