Are you planning to start a new venture? If you’ve set your foot in the world of business, and still don’t have any idea about managing the flow of goods in your system; well, this article has got you covered!

What is Inventory Management?

Inventory management is defined as having the right products at the right place & time. As simple as it may sound, without proper planning and organization, you are not very far from falling into a soup of problems that will hinder the process of your hard-earned business.

It’s a chain where each one in the pyramid right from the sourcing department to the retailers has equal roles to play.

Manufacturing companies, marketing, and sales, all prefer more inventory. Deciphering problems in warehouse management by increasing the storage area and possessing knowledge about the number of warehouses in a particular area will also demand more inventory.

Let’s see this with a simple example.

A customer comes to a retail shop to buy a particular item. It isn’t available there, so the manager sends an employee to the warehouse to check. If there’s still no stock there, they need to contact the manufacturing unit that has to eventually contact the sourcing department for the supply of raw materials.

Due to mismanagement of the retailer, there’s a line of problems created which could be easily solved if the retailer had invested time and money in a reliable inventory management solution.

3 Main Reasons You Need Inventory Management

Saves time

Having a clear knowledge of the number of supplies at a given moment cuts off unnecessary running of employees here and there to check the warehouses. Instead, they can invest this time in some other fruitful tasks.

Saves money

Buying bulk of goods that have good demand is beneficial as it cuts down the overall cost to the company. Moreover, there’s no obstruction of cash flow from the customer.

Customer satisfaction

Market trends are ever-changing and if you can provide what the customer wants, not only do you retain a customer but also satisfy their need. There are various methods you can put into practice. Preparing spreadsheets, ABC analysis, bulk shipment, demand forecasting, drop shipping, and six sigma to name a few.

Do you think this is too much to handle?

If you want someone you can trust for warehouse management solutions, Utopia has your back.

We are among few companies with CMMI Level 3 certification and have a team of in-house software developers who can cater custom warehouse management solutions for your business. Right from the stock count, stock supply, and customer satisfaction, you’ll get everything here!