By understanding exactly how inventory management system works can help you improve your performance metrics and decrease your inventory expenses! Read this article and discover more!
Over the past few years, the VMI programs or vendor managed inventory programs have been attracting a huge popularity. The reason for this was the connection they support. They have proven competence to lower inventory costs at both distribution and production level while making sure one-shelf availability for sellers and retailers.
However, the hardware required to organize a cooperative relationship between the supply chain business partners was expensive for a lot of companies. This resulted in overall rejection. The advent of inventory management software has renewed the interest in this highly effective and collaborative system.
Understanding how the inventory management system works can help you take a complete advantaged of its features and recognize how it can improve your business performance metrics and decrease your inventory expenses.
(Read more about: 4 Ways to better manage your food service recipe & inventory software)
The inventory management system works as a cooperative tool between retailers and supplier. Unlike its previous versions, this new cloud-based system allows real-time transmissions so that you can receive inventory data such as point-of-sale and other information immediately. This type of visibility established prosecutable information that lets you adjust your shipping and production operations according to your needs. The inventory management system helps your business realize:
- Lowered administrative costs
- Improved fill rates
- Eliminated overstock, out-of-stock, and phantom inventories
- Increased on-shelf availability
Because this system is equipped with efficient reporting capabilities, you are armed with planning information and decision making information. The inventory sales and daily sales can be transmitted between retailers and suppliers so that everyone is on the same page when it comes to inventory amounts and locations. This leads to improved supply chain activity which results in better and improved customer service.
Since a wide portion of the assets are represented by inventory, the intelligent forecasting helps decrease stock levels for lowered cash flow. The automated order generation makes sure that on-shelf availability is kept and users see relevant information via user-friendly dashboards. The entire software integrates processes and operations while lowering the cost and time required for supply chain management.
The inventory management system also provides data security and safety through cloud-based storage. The retailers and distributors who implement the inventory management software experience impressive returns that result in long-term savings.
— Orderhive (@Orderhive) 15 de mayo de 2017