Choosing or switching to an inventory management system is no easy choice. There are many factors you should consider before making this decision, as it can be very hard to switch once you decide.
Getting acquainted with a new inventory management system is tough for the entire company. It is likely that employees will have to be trained and their adjustment period must be accounted for. The equipment and how the stock is handled may face changes as well.
This can be time-consuming and after all this work, it would be extremely frustrating to realise that you aren’t happy with the inventory management system you have settled with. You don’t want to fall into this situation, so here are some factors to consider before you choose!
Depending on how your business currently operates, there are a number of things you could be looking for when it comes to software integration. Adopting an inventory management system that is compatible with your existing software can save you a lot of trouble.
For example, it would be troublesome and time-consuming to have to change your accounting network, so choosing something that is compatible may be a good choice.
This can be dependent on the size of your business. It may be recommended for large, expanding companies to change their networks, whereas steadily growing small-medium businesses may find it more beneficial to stay with their current setup.
Depending on your individual company, your levels of need for mobility and tracking may be different. However, it doesn’t hurt to have an inventory management system that is reliable and which you can trust to accurately depict the location of your stock.
If you are reliant on knowing exactly where your stock is and it is essential for your business to be able to keep track of it, it is worth choosing software that has advanced stock lookup. This will allow you to search up products by using their multiple attributes, and seeing which stage of transportation they are in.
Reporting is an important part of your system as this feature provides a clear and concise summary of the movement of your stock. This can be helpful in making business decisions and understanding how the products are performing.
Aside from knowing where stock is, reporting provides a summary that can paint a picture of your business performance. This includes sales by item, location, and customer with margin analysis. These financial summaries can be really useful in making executive decisions and considering the direction of the company.
Having efficient processes for shipping can save time and reduces the amount of spoilage. Choosing an inventory management system with an integrated rule-based method can encourage this.
You should always consider if the company you are choosing is one that will continue to innovate and progress. This can inform you whether they will update in the future and make changes that benefit you and encourage more efficient and effective processes.
Some inventory management systems will be able to integrate with e-commerce websites. This can be extremely beneficial to you as it makes the coordination between your sales and your stock much smoother.
Having an integrated system can make it less likely for mistakes to occur, due to the connection between the networks. This can be extremely useful and allow for a more efficient, cohesive workplace flow.
Choosing an inventory management system is not an easy decision so it’s important to consider these factors before making your final choice. Make sure you think about how these factors are relevant to your company in particular.