Trading comprises wholesale, warehousing, and retail management, including inventory management. Managing the stock is very important in all these aspects of Trading. A trader will maintain a stock of fast-moving goods and reduce the stock of goods that are rarely in demand. Freshness becomes more important for perishable goods as they can get stale within a few hours or days. A competent Retail Inventory Management System is important, particularly for perishable goods.
Without a reliable Inventory Management System, maintaining the stock of perishable items becomes very difficult, and it may even result in a huge loss. Considering wholesale or a chain of retail stores dealing in perishable or non-perishable goods. Their entire stock may be spread over multiple locations. So, when customers enquire about an item, the store manager needs a Retail Management System to find it. In the long run, that will cause companies to lose considerable business despite retaining the stock of items in demand.
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Inventory Management – Key to successful wholesale and retail management
Large wholesalers and retailers need robust Multi-Warehouse Inventory Software to manage large stock increases over multiple warehouses across various locations. These locations may be within the same country and sometimes on different continents. One example is an online e-Commerce solution with customers from around the globe. It must maintain a warehouse at some of the most popular, customer-centric locations. The such establishment is only possible if the organization runs a robust and reliable inventory management system that keeps track of real-time inventory. The warehouse will make sure that the customer only sees what is available. Out-of-stock items are distinct and show only if the customer specifically queries the same.
If customers order items unavailable in the nearest warehouse but available in another, they can still complete the order with the customer’s agreement. Cloud computing and the availability of real-time data in a competent Inventory Software System is the only way to tackle such situations, which are common in trading. Stock replenishment is automatic, and high-demand products will not run out of stock. This is done with a competent Retail Management system integrated with purchasing and accounting modules.
Also read: Using ERP for Automated Trading System Business in Singapore
Features of a perfect Inventory System for Trading Industry
The trading industry cannot take any risk when it comes to maintaining the stock in case of wholesale and retail. The following features are essential to a robust Inventory Management System for trading industry:
Stock management
It essentially involves keeping track of the current stock of items at various locations and in transit. The system will cross-check against theft, damage, or waste of value and the amount of stock and verify them periodically. This feature gives the real-time stock level of all items the organization needs and alerts the management when the fast-moving products go below the required stock level or reach the re-order level. It also includes options for generating GRN.
Supplier management
It maintains the supplier records, the stock they supply, the credit limit permit, and the time taken to replenish stock. The system keeps track of payments to the supplier and alerts the purchase manager near the payment date. It also keeps track of the payments made to them.
Customer management
It keeps track of the customers, their order frequency, frequently ordered items, permits credit limits, generates credit notes, etc. Customer management is particularly important in the Retail Inventory System, as the retailers deal with more customers directly than the wholesalers. The wholesalers also consider customer management crucial as their customers deal with large volumes and stock value.
Enquiry management / order management
It accepts customer inquiries in the case of wholesale as well as retail and checks for the corresponding stock availability in the system. It alerts the supervisor or sales manager regarding the demand and provides information on current stock levels and where it is available within the organization.
Also read: What is ERP System Inventory Management and Its Benefits
Automated Stock Replenishment
The optimal stock values require to be set in the Inventory software. The business validations are also selected based on the values set by the management. Re-order quantity is manually set against each item in stock which is the base value for stock management. Before or when an item runs out, the system alerts the purchase manager to replenish the supply. It could also send an automated purchase order, which is sent to the supplier once accepted.
Budgeting Stock Requirements
This forecasts the stock requirements for the forthcoming months or a year base on past and current sales and purchase data. Budgeting or forecasting stock is very important in the Wholesale business as each order will deal with large volumes of stock. The wholesale Inventory System keeps track of stock acquired from each supplier, including the time taken for replenishment and the frequency of re-order. The system predicts future purchasing patterns to maintain optimal stock levels. To do that, it uses data and demand or actual demand and sales of each item in Inventory. This important feature helps management decisions and sustains retail and wholesale businesses.
Conclusion
As important as these basic features are for a perfect or competent Inventory Management System for the trading industry, real-time integration with Accounting, Warehousing, and Sales modules is equally important to keep the system running flawlessly. With the best ERP for trading businesses, management can integrate reports on purchase costs, sales costs, current inventory levels, and optimal inventory levels needed to sustain the trading establishment and achieve maximum profitability. Cloud computing elevates the Inventory System by providing real-time stock details remotely to authorized users in other locations, unlocking limitless opportunities for success in the global market.
HashMicro provides an integrated ERP system that can fulfill your need for an Inventory Management System, HRM Software, Warehouse, Accounting System, and others. Our ERP system simplifies and streamlines all your company’s processes through a centralized system. You can start your partnership with HashMicro by doing a free demo. See HashMico’s ERP System pricing scheme here.
