Your guide to inventory control software
When you have too much inventory on stock, it eats up your cash reserves and it will make it difficult for you to run a smooth-flowing business. Inventory control software allows you to have a chance to build up stronger relationships with your customers as you have the ability to fill their orders faster and to keep just enough inventory on stock to fill the orders. Making products to order is a wonderful way to reduce your debts and cash flow woes since you aren't always waiting on your customers to pay their bills to have enough money to pay for raw goods and other supplies.
One thing to note is that inventory control software will be able to help you organize your inventory and to provide faster services to your customers. It is not going to actually reduce your inventory that is up to you. When you order too many products and they sit in your inventory, it will tie up your essential cash reserves and it can definitely hurt your company. Commonly you will need to slash your prices greatly just to try and move the inventory off the shelves. This often causes you to take a big loss per product and it doesn't even make ordering some of the products worthwhile.
To pick the right inventory control software, you have to be able to take a look at some of the things that are the problem with your inventory. Here are some tips to follow:
- First, you need to define what your inventory problem is. Do you have too many products on stock or do you find that the problem comes from mismanagement of the inventory as you have bottle-necking and issues with communication? Some of the inventory woes can be fixed just by walking the floor and working with your warehouse manager to fix problems you can see.
- Second, where are your inventory levels currently at? If your inventory levels are pretty high, you will constantly wait on your customers to make their payments so you have enough money to pay your staff and to order additional products. When you invest too much money into one product, how are you planning to guarantee that it is going to sell? What happens if this product sits on your inventory and some of your other products are starting to move off your inventory? How will you pay for the raw goods that are needed to produce these raw goods? Establish goals that will allow you to reduce your inventory.
- Third, look for software that will communicate with your vendors. When you can create set inventory levels, you will have a much easier time working with reorder points that are easier to manage and won't eat into your cash reserves. Suppliers often like to streamline deliveries so if you are reducing your inventory it can work against them with delivery time
How large is your organization? Are you hoping to purchase a smaller inventory program that will allow you to easily work with your inventory or are you planning to have an inventory only program? QuickBooks is a very popular program for small businesses because it will allow you to not only have inventory control but it gives you control over your financial records as well. The cost of QuickBooks compared to so many other inventory and finance programs is very affordable and it's hard not to invest in it. Take a look at the online version in addition to the desktop version if you are a smaller business and you are not needing a larger version to manage your books and your inventory.