Your Guide for Inventory Management Success in 2022
If the last 2-years have taught us anything, it’s that none of us know what’s around the corner.
Every business that holds and sells inventory has experienced a tumultuous time. Whether it’s sudden lockdowns, supply delays, increased shipping costs, a surge in customer orders, or juggling staff shortages due to illness and the need to work from home – inventory-based businesses have been put through the ringer. And it has certainly become the ‘new normal’, right?
During this time, we have seen many businesses that have absolutely thrived. These companies have responded quickly to changing circumstances, and by putting the right systems in place, have capitalised on every opportunity that this time has delivered.
Whereas other businesses have become totally overwhelmed. Typically these companies have resisted change, clinging to the hope they could carry on as they always have with slow, inefficient manual processes that waste time and money.
2022 is the year to put yourself in the driver’s seat and prepare your business for its best year yet!
We have collated this handy guide to help more Australasian businesses to scale and grow.
It’s easier than you think – and now is the time!
How does a good Inventory Management system help?
Inventory Management software provides your business with the proper operational platform that you need to manage your purchasing processes, inward goods, stock management, manufacturing, and dispatch of your customer orders. Having these correct systems and processes in place gives you greater business stability.
The above processes can also be achieved using your accounting software, or excel spreadsheets, but there comes a point when you outgrow the capabilities of using these systems to manage your inventory business.
Using Inventory Software alongside your accounting system will allow you to breakthrough to a new level of business management. Giving you the possibility to:
- Allow you to effectively control your stock holding levels using smart min/max and forecasting functions.
- Manage customer backorders with ease.
- Manage your suppliers and purchasing processes with true, accurate Landed Costings with Multi-currency.
- Manage multiple warehouses rather than all your inventory being lumped into one listing.
- For the manufacturers out there, you can utilise the full manufacturing suite with Bill of Materials and Manufacturing Orders. Allowing for smart management of Work Order scheduling to instantly know your labour demands so you can manage staff and resourcing of your production team.
- Plus many more tools.
For most stock-based businesses the biggest impact on cashflow is stock holding. For example, if you carry $500,000 worth of stock at the moment and if you can reduce your stock holding by 10% by knowing slow moving stock or having greater understanding of your stock turnover rates, you can put $50,000 back into your businesses daily working capital.
These elements are all part of good inventory management software and sets a solid foundation for your business. This platform is the foundation for the operations of your business and can be added to as your business-needs grow. Good inventory management software will allow you to connect with other programs to drive even more efficiency and stability.
When you are selecting an Inventory Management solution for your business, you should factor in what smart solutions are available to be added alongside as futureproofing. While you may not need all of the available integrations on day one, you should have the comfort in knowing that you can add these if and when needed. Connecting your Inventory Management software to your accounting system is just the beginning.