Advantages and Disadvantages of Inventory Management Software-converted

Advantages and Disadvantages of Inventory Management
Software
Inventory management is one of the main tasks that should be
performed by any business that is into the selling of different kinds of
products. Any company that specializes in inventory management will
tell you how it is a central factor in offering BOM cost reduction services
to their end-users. These days computerized inventory management
software systems are used for simplifying and streamlining the process
of inventory management. Features like POS software, procurement
support, bar codes, and accurate warehouse tracking can really make it
a lot easier for the business houses to always stay well informed when it
comes to their business inventory. With services like MRO data
enrichment and sourcing cost savings alternatives. However, just like
anything else, the inventory management software systems come with
their own range of benefits and shortcomings and you should be aware
of that before you go ahead and invest in some specific software.
Here are the advantages and disadvantages of inventory management
software that you should know about.
Advantages
High efficiency in automated reordering as well as in-stock information
By using inventory management software, your employees and
customers can learn within seconds if an item or product is in stock or
not. Since inventory details are synced with the sales, the system always
maintains a detailed track of everything that is in stock. Such efforts can
effectively flag all reordering needs so that your company can offer
superior services to customers. Once the inventory drops below a certain
mark, the software can guide vendors to place new orders as well as
track their deliveries so that your company can let the customers know
when they can expect the new products to become available.
Smooth integration with all accounting activities
Most of the inventory management platforms these days can be
integrated easily with accounting software for the purpose of tracking
the inflow and outflow of your financial resources. You can conveniently
transfer all the inventory assets and costs between the programs easily
so that you do not have to maintain extra bookkeeping expenses.
Additionally, you can also have your financial statements prepared easily
by sharing data between your inventory management software and
bookkeeping software.
Forecasting and Planning
With the help of the inventory management software, you get to have a
powerful data collection system to perform forecasting for your business
and create strategic planning reports. Forecasting future product
popularity trends can help you to run your business efficiently. This can
not only help you to grow your business and place orders for inventory
in an intelligent manner and make the most use of financial resources.
Disadvantages
System crashes
A major problem that frequently bugs users when they are dealing with
inventory management software is that they have a tendency to crash
down which can lead to loss of valuable data in many cases. Crashes can
happen because of power outages, corrupted hard drives or other
technical problems. Hence it is necessary to perform data back up on a
regular basis.
Hacks and security breaches
When inventory information is maintained in software, it can be
infiltrated by the hacked. Loss of financial information and bank details
can be a critical problem. Hence it is essential to make use of anti-virus
software and firewalls.
Fewer physical audits
Automation of your inventory management can mean no more physical
inventory audits since they are time-consuming. However, physical
audits are necessary to make sure that the data is reliable and that there
are no instances of internal thefts or that no one is manipulating the
inventory system software. Such audits can definitely help to boost the
operational efficiency of your company.