Gone are the days of tallying stock on a clipboard or painstakingly updating a spreadsheet.
Thanks to technological advancements, you can count on automated inventory management systems to enhance inventory control, accurately track items, and reduce human error.
Here’s how automated systems help retailers better manage products. We also have some tips on choosing the right software for your business. (Hint: It’s Fishbowl.)
Understanding automated inventory management systems
For companies eager to streamline the inventory process, an automated system is a must-have. This tool monitors product stock levels, decreasing the need for manual warehouse processes and stocktaking.
But the functionality doesn’t stop there. Automation can optimize several inventory management processes, from recording dropshipping orders to demand forecasting, reducing costs. Plus, it collects data across business’s pillars, giving you better insights about operational efficiency and productivity.
The key features of automated inventory management software
We’ve already touched on a few of the features automated systems offer, but let’s explore them in greater detail.
Automated order management
One of inventory software’s primary responsibilities is automating the ordering process. It allows warehouses to instantly detect low stock and generate purchase orders based on predetermined reorder points. These triggers maintain optimal inventory levels to prevent stockouts and overstocking.
The software also centralizes customer information, making it accessible to consumers and vendors for real-time order status visibility, enhancing customer service and vendor relationships. Order management also includes sales order fulfillment.
Automatic stock transfer
Most warehouses occasionally transfer inventory between facilities to optimize storage space, balance inventory levels, and meet reordering needs at different locations. Automated systems streamline this process by removing manual data entries and reducing logistical headaches by signaling the need for stock transfers. These systems can also incorporate warehouse management features that manage stock movements within and between warehouses.
QR code and barcode scanning capabilities
Inventory items usually come with a scannable barcode or QR code to help track and manage products. These features are critical to business operations since they expedite the stocking and replenishing process before inventory runs out. Make sure to choose software that can scan these codes to get an accurate account of products.
Inventory alerts
Automated inventory management software enables you to receive critical notifications about low stock, bulk orders, new shipments, and overstocking. These alerts will allow you to take immediate action and keep up with changing demands or circumstances.
eCommerce integration
An automated inventory management system can integrate with various eCommerce platforms and sales channels. These integrations help you keep up with customer demands across different platforms, whether it’s your own website or a marketplace like Amazon or eBay. By automatically syncing inventory levels, you reduce the risk of stockouts and overselling, ensuring a seamless shopping experience for your customers.
Real-time data reporting and forecasting
Inaccurate data reporting can be costly due to miscalculations and any resulting poor decisions. Inventory software gives you on-demand access to current data reporting, which provides insights into the status of your inventory. You can then use this information to improve the quality and accuracy of forecasting to ensure you’re maintaining the right inventory levels.
The benefits of automated inventory management
You’re probably already enjoying the advantages of automation in certain areas of your work. Here’s how it can benefit your inventory management system.
Real-time access to inventory analytics
No more waiting for manual reports or relying on outdated data. Automated inventory management gives you a live, up-to-the-minute view of your stock levels, sales trends, and other critical metrics. This access empowers you to make informed decisions quickly, spot emerging trends, and adjust strategies on the fly.
Better time management
Manual inventory processes are time-consuming and prone to errors. Automation eliminates tedious tasks like manual data entry, stock counting, and order processing, freeing up employees to focus on higher-value activities. When your team spends less time on paperwork and more on customer service, product development, or strategic planning, the result is a more productive and engaged workforce that drives business forward.
Industry competitiveness
Automated inventory management provides a competitive edge by optimizing your operations, reducing costs, and improving efficiency. By automating the reordering process, for example, you avoid stockouts, making sure customers always have access to the products they want. Your improved ability to meet demand will likely lead to increased customer satisfaction and loyalty for a stronger position in the market.
Fewer inventory miscalculations
Manual inventory management is inherently prone to human error. Miscounts, misplaced items, and data entry mistakes are all factors with costly consequences like overstocks or stockouts.
Automated systems eliminate the opportunity for mistakes, providing accurate, reliable data and ensuring that your inventory records are always correct. This translates to significant cost savings by reducing waste, preventing lost sales, and optimizing inventory levels. Less human error means better decisions, improved forecasting accuracy, and greater operational efficiency.
How to choose an automated inventory system
So you’re ready to move forward with automation. How do you decide which software solution to pick? The ideal automated system will depend on your specific business needs, but here are four factors to keep in mind when comparing solutions:
- Available features: The non-negotiable features you should look for are automated workflows, sensitive data protection, and the ability to track inventory levels in real time.
- Scalability: Choose software that can grow with your business so you’ll have an easier time fulfilling increasing demand and expanding your operations.
- User-friendly interface: A system that accommodates a variety of technical abilities will decrease training time and increase worker productivity.
- Support and training: Look for a provider with personalized training and good customer service to reduce confusion and help your team get the most out of the system.
Trends to watch for
Here are a few upcoming inventory management trends to keep an eye on.
Cloud technology
Cloud-based inventory management solutions are increasingly popular thanks to their accessibility, scalability, and cost-effectiveness. Cloud technology stores your data on remote servers instead of expensive on-premises hardware and software. The best cloud solutions also offer real-time data synchronization across multiple devices and even locations, enabling seamless collaboration across teams.
Consignment inventory
Consignment inventory is an innovative inventory management approach that benefits manufacturers and retailers. By allowing retailers to stock products without upfront payment, manufacturers can expand their reach and reduce inventory holding costs. For retailers, consignment inventory makes it possible to offer a wider variety of products without the financial risk of unsold inventory. The best software should support consignment tracking.
Machine learning and AI integration
Like other fields, the integration of machine learning and artificial intelligence (AI) is changing the inventory management landscape. AI-powered algorithms can analyze vast amounts of historical data, market trends, and customer behavior to predict demand and optimize inventory levels. This can lead to significant cost savings by reducing excess inventory and preventing stockouts.
AI can also automate routine tasks like reordering and data entry, freeing your employees up for more strategic initiatives.
Transform your inventory processes with Fishbowl
Automation used to be a luxury, but now it’s the norm. And staying competitive in a constantly changing world requires adapting and adopting innovation. Fishbowl’s all-in-one inventory management solution checks all the boxes, from must-have features and scalability to a user-friendly interface and outstanding support. The platform even integrates with QuickBooks to promote financial visibility.
Are you ready to automate your inventory management? Schedule a demo of Fishbowl, the intuitive, scalable, and user-friendly inventory management platform.