5 Benefits of Using Inventory Management Software
Discover some of the benefits of using inventory management software, including helping companies reduce carrying costs.
Food manufacturers storing raw materials, packaging, batches, and finished products can rely on inventory management software to maintain profitability and operational efficiency.
Tasks such as managing stock levels are crucial for organizations of all sizes that sell products. Implementing inventory management software streamlines operations in food manufacturing facilities, ensuring smoother processes and activities.
Here's more about inventory management software and the advantages of using it.
What is inventory management software?
Inventory management software is a system that stores data about a company's raw materials, packaging, batches, and finished products, possibly across multiple facilities. The software records specific product information, including lot code, quantity, location, and expiration date if relevant.
Inventory management systems also enable users to carry out the following processes:
Tracking inventory levels
Tracking product movement throughout the facility
Determining whether all needed items are available for production
5 benefits of using inventory management software
Some of the advantages of using inventory management software include the following:
1. Reduces stock outs
Inventory management software is particularly helpful for food manufacturers that require sufficient raw materials and packaging to produce and ship finished goods. To start a production run, employees must confirm inventory levels to ensure that all needed materials are available, and lack of inventory results in production delays.
Inventory management software allows you to set low inventory alerts, enabling your team to proactively restock so materials will be available when needed.
2. Improves QA
Inventory management software makes it easier for a company's QA department to carry out their tasks.
The system stores data like lot traceability, which can help employees find certain components or finished products in a recall situation. The information will help limit recall scope, which may potentially save the business or help win new retail contracts.
3. Reduces costs
Inventory management software can help save companies money in various ways.
Eliminating the need for a data clerk for data re-entry and reducing the headcount needed to conduct traceability, reduces payroll costs. In addition, leveraging tools such as FIFO or FEFO to help optimize inventory and traceability reporting help costs associated with throwing away more product than needed.
Ensuring real-time visibility into stock levels also helps reduce carrying costs from carrying too much product and higher supplier costs from constantly re-ordering smaller quantities due to frequent stock outs.
Companies without this capability must hire additional employees to physically walk through the facility and conduct manual inventory counts.
4. Increases efficiency
Inventory management software can help companies make operations more efficient. For example, many modern inventory systems are available for use on mobile devices, enabling users to capture and share data from the floor. This eliminates the need for paper forms and double data entry.
In addition, inventory management software helps users locate products quickly in a facility, avoiding delays during the shipping process. It also enables the sales team to check inventory levels on specific items without having to contact warehouse staff about product availability, saving employees time.
5. Improves customer service
Customer service suffers if a customer places an order and an employee must then inform them that the product is not available. Inventory management software gives users real-time visibility into stock levels, ensuring product information on the company website is up-to-date.
If you need assistance, schedule a free consultation for guidance tailored to your business needs, helping to improve inventory control.
