If your business tracks what it buys and counts what it stocks, then it’s already practicing a little bit of inventory management. In this article, we’ll dive into the basics of what inventory management really is, how you can easily implement it, and how simple tools like inventory management software can help you save time, money, and stress.
Inventory Management Definition
Inventory management is the process of ordering, organizing, storing, and utilizing your business’s inventory. Whether your business stocks raw materials or finished goods, inventory management is a key component of keeping your company running smoothly.
Effective inventory management involves tracking, planning, and analysis to ensure the right items are available in the right quantities at the right time. It is the ongoing process of minimizing costs and maximizing efficiency while meeting customer demands and maintaining profitability. Effective inventory management is vital for businesses seeking to maintain a competitive edge and achieve sustainable growth.
No matter what size or type of business you run, the goals of inventory management are simple:
- Keep track of your inventory (including assets like equipment and tools and consumable inventory like supplies and materials)
- Know what you’ve got in stock, how much there is, and where its located
- Know when and how much inventory to re-order
- Understand what items are used most and help drive the biggest profits
- Understand what items aren’t used often or don’t generate much revenue
- Make more informed business decisions based on your inventory data—not guesswork
- Ultimately: grow and scale your business
If your business stocks more than just a dozen or so things, it can be a challenge to keep track of everything using a sheet of paper or a spreadsheet. Many businesses turn to inventory management software to help them get a handle on inventory quickly and efficiently.
How inventory management software can help
The easiest way to keep track of inventory is by using inventory management software. Inventory software is a much more convenient and scalable solution than tracking inventory on a spreadsheet. While spreadsheets might sound like an easy solution, they are often difficult for an entire team to maintain in real time, are inaccessible on most mobile devices, and do not have the complex capabilities of inventory software (such as barcoding, photos, reporting, and so on). What’s more, spreadsheets are subject to human error—did every member of your team remember to update the sheet? Is the information outdated? Is it even accurate?
Experience the simplest inventory management software.
Sortly inventory management software lets you track inventory levels and locations in real time, from any device, in any location. You can organize, track, manage, and update your inventory all in one place—it’s so easy and intuitive that your whole team can get up and running in just a few minutes. You can actually save time and costs on inventory thanks to features like built-in barcode scanning, low stock alerts, and customizable inventory folders. Sortly also gives you custom inventory reporting using your usage data, allowing you to gain insights and make better decisions about your business. Sortly enables you to work more efficiently, plan for jobs better, and serve your customers to their highest satisfaction.
If your company would benefit from improved inventory management, try Sortly free for 14 days.