The right warehouse inventory management software can spell the difference between effective and ineffective vendor management. As a discipline, inventory management focuses on ensuring that you have the right products in the right quantities at the right time to offer to customers.
Effective inventory management can thus avoid stockouts, overstocking, and unsold products. A warehouse inventory management software is essentially a program that automates inventory management to help streamline operations, optimize supply chains, and thereby effectively manage vendors and suppliers.
Among the benefits of having inventory management software for vendor management are:
Automating manual tasks
A warehouse inventory management software can help you simplify vendor management by automating tedious manual functions such as:
- Billing
- Procurement
- Reconciliation
- Supplier communications
Having a centralized repository
Warehouse inventory management software also provides a centralized platform so you can organize your contacts, vendor agreements, contracts, and negotiations. You can stay on top of everything and make management a breeze during the entire vendor lifecycle.
Real-time reporting and analysis
Compared to manual inventory management, using specialized software makes it much easier to mine data and manage different areas of vendor management to identify areas for improvement. This covers anything from sourcing to procurement, invoice reconciliation, contract management, and vendor performance.
Mitigating risks
Effective and consistent monitoring and management can also help you identify risks when working with vendors. This provides an opportunity to quickly address potential issues before they arise, eventually leading to better customer satisfaction and a healthier bottom line.
When organizing your inventory, the first step is always setting up information about your stocks and suppliers in a reliable system, such as your warehouse inventory management software. You can also use manual tracking, like spreadsheets or even pen and paper, to keep track of products and vendors.
As you scale, however, you’ll find that it’s much more efficient to invest in reliable management software so that nothing falls through the cracks. A trusty inventory management software will also have a vendor management system that allows you to search for vendors and products in a central directory that you and your staff can access in real-time.
Set aside time to file your vendors’ information in your warehouse inventory management system, as you will find this handy later on, and it will be much easier to search for the information you need. Include the following information in your records:
- Vendor name
- Contact person
- Phone
- Website
- Billing information
- Payment terms
- Order volume
- Showroom contact or line representative
- Shipping times
- Fulfilment terms
- Top products from the vendor
Even with a well-oiled business model, issues can still arise, and you might find yourself in a position where you need to fulfil an order ASAP. Having a good relationship with your vendors can make or break important business deals and customer relationships, so investing in a strong relationship with your vendors is always important.
Consistency can go a long way in business relationships, so stick with the same suppliers whenever possible, arrange meetings during trade shows or at the office for a quick in-person alignment, and make it a point to pay your invoices on time.
If you are interested in learning how Fishbowl’s flexible inventory management solution can help your business now, you can book a demo