How can inventory management software help reduce costs?

| 7/2/2021
How can inventory management software help reduce costs

Inventory management software oversees the buying, storing, and selling of your products.

It can help improve accuracy and automation.

Increasing market share while reducing costs – it’s a delicate balancing act for your business. By helping you maintain just the right amount of stock to balance customer demand and cash flow, an efficient inventory management system can help with cost savings.

Inventory management software is an effective solution that allows you to streamline your processes while reducing costs. We’ll explore the benefits further in this article.

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Managing inventory can be a challenge.

We know there are many moving parts and frequent unexpected changes in the efficient management of inventory. Whether it’s numerous products, lots of suppliers, or multiple locations, it can be complicated overseeing your inventory operations.

As your business grows, it becomes more critical to have the inventory management tools to efficiently and accurately oversee the many active components. Effective inventory management software makes it possible for your business to buy, store efficiently, and sell stock and products essential to your growth.

What is inventory management software?

Inventory management software is a business application system to oversee the buying, storing, and selling of your products. This software can track everything related to inventory: raw material or finished goods, purchasing, product sales, ongoing inventory, different production processes, and more.

Inventory management software aims to maintain the correct stock, at the proper levels, in the right locations, to meet customer demand and reduce costs for your business.

The benefits of inventory management software

If you’re looking at reducing inventory management costs, intelligent and efficient inventory management software can help you. Here are some key benefits you can expect:

Accuracy. The software helps to improve inventory and order accuracy. Fewer errors mean less time spent by valuable employee resources to fix them.

Cost savings. Optimum inventory levels reduce costs since you’ll spend less money storing stock that is surplus to demand. On the other hand, it will also be easier to avoid items being out of stock.

Automation. Automation allows you to order stock when inventory falls below a pre-defined level automatically. This process saves your employees time and saves your business money.

Visibility. A clear dashboard can tell a visual story of inventory management and gain deeper insights into your business's growth. In real-time, you’ll see: where inventory is going, who your biggest customers are, what products are most popular, and what improvements are needed to drive future cost savings.

Productivity. A streamlined software increases productivity as your employees can focus on other projects and activities.

Customer retention. On-time orders make for happy customers who provide repeat business, positive product reviews, and promotion of your products.

Dedicated software vs. ERP solution

Inventory management solutions fall into two main categories: dedicated inventory management software, or enterprise resource planning (ERP) software that integrates its inventory management component with finances, logistics, operations, and more.

A dedicated inventory management software allows you the opportunity to get very granular inventory management tools.

An ERP system incorporates all the benefits of inventory management software while also allowing cost reductions across your entire business. The added advantage of an ERP allows you to manage everything in one place.

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If you’re wondering, “What is the best inventory management software for small businesses?” – we have some thoughts.

Our team of specialists will be happy to walk you through how NetSuite Inventory Management ERP software can help you save time and money, with additional benefits across your entire business.

Give us a call any time.

Contact us

Simon Riley
Simon Riley
Principal, Finance
Steven Parker
Steven Parker
Managing Director, Consulting
Alejandro Alvarez
Alejandro Alvarez
Principal, Consulting