When you implement the best inventory management system in Dubai, you immediately take your business operations to the next level. After all, no matter what stage your company’s growth is in, the most important thing you can do is manage your goods like an expert.
To learn more, read on for your essential guide to implementing an inventory management system in 2022.
What is inventory management?
Let’s say Adriana has a business selling picnic hampers filled with products from different suppliers. Each of these suppliers sells her the products in bulk which she then needs to divide, repackage, and include in the picnic hampers.
In order to keep track of these moving parts, Adriana creates a spreadsheet which she updates whenever she orders more products, creates a picnic hamper or makes a sale.
This spreadsheet is her inventory management system as it is what tells her how much product she currently has, when she has new shipments coming, if any food products are at risk of expiring, her current sales data, and much more.
In order to make well-informed decisions for her business, Adriana needs to know these factors; otherwise, she could very quickly end up with excess stock or insufficient products to make her picnic hampers – both of which would soon erode her bottom line.
Of course, inventory management will look different depending on the size of your company, the amount and type of stock you have, and the size and complexity of your supply chain. However, the one factor that remains the same across the board is that inventory management is necessary and will significantly help your business’s operations and bottom line.
Think of it this way; if you have too much money tied up in your inventory, then you are going to bring your company down. If you don’t spend enough, you will not have the right products, and you will lose customers. So, to strike the perfect balance, you need proper inventory management.
Why is an inventory management system important?
The importance of proper inventory management can’t be stressed enough. After all, how can you expect to run a successful business if you don’t know how much product you have in your inventory or where the product currently is?
Not knowing this information and not being able to refill your stock accurately is a surefire way of losing customers to your competition. You don’t want that!
Therefore, there are several significant reasons why an inventory management system is essential for your business, no matter what type of inventory you have.
For starters, the best inventory management system will render high visibility of all your items, as well as their locations (if applicable). This, in turn, reduces the chances of stock-outs as it provides you with the overview you need to ensure you replenish your stock on time.
For many businesses, physical inventory is the most considerable investment, making it crucial that you correctly handle this expense. How you manage your inventory will significantly affect whether you find success or failure. For this reason, one of the most important things you can do for your business is to understand how much value you have in your inventory at any given time.
Furthermore, the most effective inventory management system will accurately forecast how much inventory you require after analysing sales activity. This makes the numbers even more reliable and allows you to place orders accordingly to avoid overstock or stock-out. If your inventory involves perishable items, then your inventory management system can also account for expiration dates.
In other words, several factors go into successful inventory management. And, without an inventory management system, you are making your inventory management efforts much more complex than they need to be.
Who should have an inventory management system?
It doesn’t matter whether you are an ecommerce business or a brick and mortar outlet, a collection of chain stores, or a small business that you operate out of your guest bedroom; an inventory management system is necessary. In all these scenarios, you will benefit from the insights it brings into all aspects of your products.
Not to mention, the data will help you understand your customers better as well – another necessary factor in creating and maintaining a successful business.
What should you look for in an inventory management system?
Now that you know you need an inventory management system (or you have realised you need to upgrade your current software), it is time to start looking at the options on the market. While there is a wide array of choices, it is essential to note that they are not all designed the same, with some offering a lot more features than others.
For example, the best inventory management system in Dubai offers barcode scanning, which enables you to identify and track your products quickly and allows for instant product identification and labelling.
Additionally, you will benefit from stock notifications that alert you when you reach a set threshold for over-or under-stocking and stock returns handling, making managing returns more efficient.
Report generation is another integral feature as it enables you to go beyond the numbers to conduct analyses that will tell you more about which products do the best and various consumer trends.
In a similar vein, purchase order records allow you to generate reports of all your orders to identify quickly which goods are in demand, both perpetually and seasonally. These features will significantly help you to adjust to meet your customers’ needs.
Finally, material grouping is also a necessity for many businesses, as this feature allows you to divide your inventory into predefined categories. This can be extremely helpful, as you want to know details about specific types of product stock.
If you have multiple warehouses or places where inventory is stocked, you want an inventory management system that can integrate these various locations into one system.
Whether you already have an inventory management process or you need to create one, you still will require a system through which you can manage and maintain that process.
This is why an inventory management system is necessary, as this software tracks how you address inventory management for your business, making it easier for you to track your inventory and goods throughout your entire supply chain.
Reach out today for an RFID system demo and see how you can streamline and enhance your inventory management.
Are you looking to implement a new inventory management system? Why or why not? What challenges are you having with your current system? Which features do you think are the most important?
Let us know your plans and any further insights you may have in the comments below!