We all know that there are several ways to report and manage one’s inventory whether it is real-time, end of day, end of week or just some simple internal process that may work for your business. As your business grows the importance of real-time information is mission critical to success. We would like to provide the case that managing your inventory in real-time needs to be implemented so one can re-order product effectively to minimize out of stocks but also minimizing excess inventory.

We all know that there are several ways to report and manage one’s inventory whether it is real-time, end of day, end of week or just some simple internal process that may work for your business. As your business grows the importance of real-time information is mission critical to success. We would like to provide the case that managing your inventory in real-time needs to be implemented so one can re-order product effectively to minimize out of stocks but also minimizing excess inventory.

Real-time inventory management is the process of recording sales and purchases of inventory immediately through the use of software so that your company gains a complete picture of what’s occurring with inventory, enabling your organization to react quicker to supply chain needs.

The Benefits of Real-Time Inventory

As mentioned previously, the first benefit is that it allows your company to avoid out of stock and excess inventory more quickly than a periodic inventory management scenario. By updating all receipts and sales in real-time, you can tap into up-to-the-minute data, which will enable you to more effectively budget supply and demand for all products.

Which brings us to the second benefit: enhancing the customer experience. One of the worst-case scenarios is to have a ready, able and willing buyer, only to lose them because you don’t have adequate stock of a particular product. Not only does this impact your immediate sales but it also may have a negative impact on future sales.

 

Third, implementing a real-time inventory system will bring some benefits to your warehouse as well. Managing your inventory in real-time will require your warehouse to become more organized. Furthermore, it will also result in less overall recounts of inventory if managed correctly and will provide a way to track return products as well.

Fourth, real-time inventory will work wonders for your accounting and finance team as well. Knowing exactly how much inventory you need at the right times gives an accurate picture for the finance group. Just estimating where your inventory is could create a problem with profits and daily cash flow.

Just because you implement a real-time inventory system doesn’t mean you will work in a mistake free warehouse. Create a training process and educating employees correctly will have its rewards. Taking the giant leap forward into real-time inventory is daunting for growing companies. Taking the time and effort to implementing real-time inventory management system will improve your financial bottom line but also create business operational efficiencies.

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Let us show you how topShelf Cloud-Based Inventory Management Software can help you streamline processes, increase inventory visibility and accuracy while increasing your revenue.

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