How To Turn Your Automated Inventory Management System Into A Profitable Sales Solution Using Spocket
Table of Contents
An automated inventory system is one that automates critical aspects of the inventory management process. Top brick-and-mortar and eCommerce retailers use inventory automation to streamline distribution and supply chain management. These automations will allow you to save a significant amount of time and effort while increasing your income. We’ll go over why you need a warehouse management platform and why you need an integrated inventory management system.
What Are The Benefits Of Having An Automated Inventory Management System?
In addition to automating time-consuming tasks and streamlining workflow, an automated inventory management system can generate paperwork for work orders, delivery, and invoicing, lowering inventory management costs.
In the past, inventory was tracked using manual reporting systems and detailed spreadsheets.
Modern inventory management software was developed to handle these multifaceted back-office operations because obsolete inventory control systems couldn’t keep up with today’s growth across multiple channels.
An automated inventory management system is used by a retail business or a D2C company with advanced technologies to perform a variety of critical business operations, such as:
- Replenishment and purchase order automation
- Automatic delivery of customer orders
- Delegation of fulfilment tasks
- Inventory management of several warehouses
- Coordination of distribution networks with order and inventory data
- Inventory control across several channels
Manual Systems Vs. Wireless Technology Of Inventory Management Automation
Using e-commerce automation and data-driven software, brands can streamline their supply chain and take control of their physical and e-commerce retail operations. To gain a competitive advantage in today’s digital commerce ecosystem, brands can boost the profitability of both brick-and-mortar and e-commerce networks by optimising inventory allocation and order fulfilment strategies through inventory management automation.
Failure to implement an inventory management system could result in out-of-control costs and collapsing operations, from distributed order management to asset tracking and product identification. Regardless of what you sell or whether your goods are seasonal, perishable, or customisable, an automated inventory system could be all that stands between your brand and limitless growth.
What Is The Difference Between Effective Inventory Management Systems and Other Process Management Systems?
A low-cost cloud-based inventory management app for your company will analyse your sales data and inventory KPIs before recommending replenishment and channel allocation.
Skubana, a real-time inventory management software, can automate the reordering process by generating POs based on lead times, sales velocity, and other selling factors such as seasonality or exclusive promotions.
Efficient replenishment enables the company to maximise revenue potential, avoid overselling, and avoid payments from marketplaces for orders that cannot be filled due to inventory constraints.
Restocking And Vendor Connections Should Be Optimised
Consider how you handle vendor relationships and replenishment (whether with distributors or manufacturers). Could better data and automation aid in the improvement of time-consuming and manual tasks? If this is the case, you may want to consider purchasing new software products for your production cycles in order to keep your customers satisfied.
With a powerful workflow automation feature, automation can be used to help assess cost-effective delivery rates, generate documentation for both foreign and domestic orders, and enable replenishment by generating purchase orders once stock levels exceed a minimum threshold.
Purchase Orders Can Be Automated
The most significant difference between software options is the degree to which automation plays a role in purchasing orders. Good software makes it easier to export and cross-reference data in order to create POs. The reorder point (or Minimum Level) is calculated by advanced systems using historical sales data, vendor fulfilment data, real-time data, and inventory levels. When you reach the reorder stage, the system generates a PO with a suggested reorder quantity, and all you have to do is click the “send” button.
Curious about Spocket’s automation process for your business? Learn more here.
Order Control Can Be Streamlined
Waste reduction is an essential component of good business management. Aside from financial advantages, inventory management software can save your company time by automating manual tasks and redundancies such as order routing, ordering, and maintaining accurate inventory counts. The ability of an inventory management system to track orders throughout their entire post-purchase journey is a critical function.
When a sales channel places an order, Inventory Management Solutions (IMS) creates the packing mark, determines the delivery process, sends tracking information, and updates the warehouse’s available stock count. Once the order has been marked as “shipped,” it will automatically generate a tracking code and send it to the customer.
Inventory Management Framework Key features To Look For
When deciding on the best automated Inventory Management Solutions (IMS) for your company, it’s critical to understand each consumer’s point of view. The perspective and criteria of a warehouse manager will differ from those of a store manager or a producer. You’ll most likely find a number of app options that are identical in terms of ease of use, availability, and access to features and functions.
At the very least, the best inventory management solutions would include the following:
Capabilities for Automatic Reordering
Sales Monitoring Integrations
Effective Tracking With Your Warehouse Location
Mobile Barcode Scanning And Barcode Technology
Advanced Reporting On Sales Opportunities
Multi-Channel Inventory Management
Aside from the basics, there are a few advanced feature sets to keep in mind. Bin monitoring, inventory forecasting, and billing/invoicing automation may be beneficial to the majority of businesses.
Keep An Eye Out For These Customer Issues
Backordered items or lost sales opportunities necessitate the use of an automated inventory system that includes the throttling constraints, data fields, and features that high-growth brands require. You can stay ahead of the competition by implementing an integrated Inventory Management Solution (IMS). Automation of redundancies, manual activities, and even finance-related business processes with a zero-margin-of-error requirement is possible with smarter technologies.
The cost of a standalone system varies greatly depending on your company’s size, the number of orders, and the features you require. Small business owners who do not sell through multiple channels have a single warehouse with a limited number of SKUs, and order sizes of less than 500 per month do not require automation.
There are also some open-source, free solutions for a few additional features, such as cloud-based inventory management software. You must also consider the benefits of the project’s implementation in terms of growth, profitability, and consumer satisfaction.
Inventory management practises involve a variety of functions throughout production forecasts, which can have an impact on annual sales. As a result, optimal inventory tracking systems must be scalable, allowing businesses to quickly adapt to market changes and change their stocks. Spocket has a professional approach to inventory solutions to upscale your cash flow which will result in business growth once you reduce time-consuming tasks and increase sales figures.
With their barcode scanning capabilities, visibility tools, customer satisfaction software, and inventory accuracy, small to medium-sized businesses can rely on e-commerce and 3PL warehouses.