Keeping your supply chain intact is crucially possible with inventory management. Having such an automated system keeps proper stock of products that need to be sold, distributed, and delivered to the end customer. And with bigger distribution scales, maintaining the process gets a lot harder. Business owners can maximize revenue and profits by using premium inventory management software, and here are six key benefits of this platform.

Low chance of error
With inventory management software, resource allocation is impossible without taking stock of inventory first. And accurate stock can only be assessed when a system is employed. Inventory management software accounts for all items in your warehouse and can provide real-time information. Companies can avoid spending unnecessarily on overheads needed for procuring and storage of excess stock. It also eliminates clutter and improves clarity on business requirements for better expense tracking.

Forecasting solutions
Premium software comes with forecasting tools that can help predict the profitability of certain products. Forecasting is usually based on the data points collected from point-of-sale systems, inclusive of factors and contingencies that may affect current sales. This way, the company can avoid hoarding unnecessary raw materials in the hopes of selling products that may not generate a profitable demand. You can greatly minimize losses incurred with proper stock management and boost profitability by inventorying the products that bring in more revenue.

Easy automation
Automation involves the use of software to repeat certain manual tasks. Good inventory management software can help eliminate laborious and time-consuming processes like physical data entry. Robotic scanners automatically check and update the correct information to categorize inventory directly into the software. There is a low scope of error as the programs run on specific algorithms that are designed to manage stock taking. Automation also improves speed thus freeing up the employee to focus on more hands-on tasks.

Control over sales
Inventory management software can allow integration with third-party e-commerce platforms that receive and process orders. It is possible to adjust stock levels in real-time and process sales only when the product is showing in the inventory. The software also automatically adjusts numbers and excludes those items out of stock. Companies can then place an order to replenish their inventory without overspending or overselling.

Improved business negotiations
Knowing exact stock levels also helps business owners to negotiate a better price for ordering what’s needed. For example, if your current stock of display monitors is 700 units and a customer requires 850, your warehouse manager can negotiate a price only for the additional 150 units from the supplier. The supplier also knows that there is an opportunity for more sales by giving you a good price. Competitors may offer lower rates to entice repeat orders, so your existing supplier will not hesitate to negotiate. This would not be possible to achieve had if your warehouse manager has no idea of immediate current stock.

Better product visibility and traceability
Sometimes, sold goods may be recalled due to a defect or may be returned by customers. E-commerce companies offer customers a time window to return products and even avail themselves of a full refund. Inventory management software can keep track of goods returned and replaced in real time with integrations enabled for such e-commerce sites. Automated ticketing systems and receipts will also keep accurate track of changes in stock valuation thereafter. This process helps improve customer satisfaction as the turnaround time for addressing grievances is greatly reduced with inventory tracking.