Many retail business owners dread hearing the word; inventory, because stock inventory management is very closely related to calculations, a lot of calculations! Maybe it does not matter if there are not too many items in the warehouse. However, for those who stocked thousands of items in their warehouse management system, the stocktaking process will definitely take a lot of time and energy.
This is what makes stock inventory management very crucial for every company. Just like cash flow, if managed properly, inventory can grow your business, and vice versa can break your business when you neglected it.
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Stock inventory management definition
Stock inventory management is an activity carried out by a company to record information about the company’s stocked goods. Such information is for example the weight, dimensions, amounts, and item location.
The main purpose is to minimize the costs incurred for storing goods in the warehouse. Costs can be minimized by knowing when it’s time to replenish items or buy materials to make your merchandise.
Why stock inventory management is important for business
Good inventory management will maintain your merchandise availability. On the other hand, if you don’t manage your inventory properly it will make you lose money. You will lose potential sales because the item your customer is looking for is not available. You also waste money because you bought too many items.
That’s why you need the inventory management system to help you automate the inventory management process, and save money that you have to spend. Here are 3 benefits of using an inventory management system:
Avoid spoilage
If your business focuses on selling items that have expiration dates such as food, there is a real chance the food will go bad and you can’t sell it to your customer. An inventory management system will help you manage your inventory so that you can avoid spoilage completely.
Avoid dead stock
Deadstock is similar to spoilage, though it’s not completely the same. You have to throw away an expired item because it is not edible or can be used anymore. You can’t sell deadstock merchandise because it’s already out of trend, out of style, or simply becomes irrelevant. To avoid these you can implement an inventory management system in your company.
Use Supply Chain Management Software to get detailed visibility and analysis of your products and materials, and to keep track of market changes.
Save on warehouse costs
If you don’t own warehouses to store your items, then you have to rent one. The cost you have to spend on warehouse rental varies depending on how many items you have. The more items stored, the more costs you have to spend. It can help you save your warehouse rental costs.
Conclusion
Good inventory management not only protects you from the losses mentioned above but also has the potential to increase your company’s cash flow. When you use an inventory management system, you will know exactly how much of your inventory is available. This allows you to order goods from suppliers at the appropriate time, allowing your sales to continue uninterrupted. With HashMicro’s Complete Inventory Management Software, you can streamline stock management, monitor stock transfer processes, and estimate all types of inventory needs. Click here to try the free demo today!
