Last updated on December 4, 2018
Proper management of inventory is key to keeping a good level of cash flow going as well as maintaining profitability. You obviously want the parts to be available when you need them, but you don’t want such a stock pile of them that you are not likely to use them for the next several years either. Striking the right balance between having too much and running out often depends on using the right software for warehouse inventory management. Companies like Infotech Systems, Inc. can help. Packages can be developed that are especially designed for warehouse and distribution operations.
Some of the things you want to include in your inventory management software package include the ability to maintain inventory in a centralized warehouse while having the ability to distribute it to remote locations in a timely and efficient manner. Not only is it important to have the right inventory items on hand, but they must be in the right places at the right times as well. A good software program can help you to keep things flowing smoothly.
If you are involved in warehousing and distribution, there may be times when you deal with your own inventory as well as items that are on consignment. You will want a package that helps you to manage both. The use of consignment inventory is a great way to ensure that the right parts are available without the need to pay for them until they are used. This keeps the amount of inventory dollars at bay. When choosing your software, you will clearly want this management ability included in the package.
The ability to set up min/max inventory levels is critical. These levels will obviously not be the same for every inventory item. It will depend on usage history and replacement lead times. The minimum and maximum quantities may need to be adjusted periodically if conditions change or it was discovered that the levels were not set properly from the beginning.
Of course, no inventory management software program would be complete without the ability to run the necessary reports. One of the most important ones is an inventory value report. Inventory dollars is a key indicator for the performance of many businesses. Too much inventory means money is tied up that could otherwise be used for other things like building the business. Only when you have the ability to properly measure it will you be able to effectively manage it. The decision on which software package to go with should not be taken lightly. Careful consideration should be given regarding all the required elements before making a decision.