Question 1

What is Inventory Control Software?

Accepted Answer

Inventory control software optimizes the economic order quantity (EOQ) of businesses. The EOQ is the optimal inventory a business should purchase to minimize the cost of ordering and holding. This type of software helps regulate inventory stored in the warehouse, understand how to maximize inventory layout, and ensure there’s enough product to sell at every point.   
 Inventory control software falls under the overarching category of inventory management, which also includes software that helps organize warehouses, scan barcodes, and print shipping labels. Inventory, or stock control solutions, automate the order fulfillment and shipping process, thus allowing vendors to instead focus on maximizing their inventory levels. 
 The ultimate goal of managing stock levels is to eliminate any inefficiencies that may incur economic costs on vendors or cause inconveniences for consumers. Effective stock control gives businesses a competitive advantage to streamline a speedy shipping process. For businesses with perishable inventory, managing inventory is particularly important to prevent spoilage with the implementation of a first-in, first-out policy. In addition, these solutions prevent the accumulation of dead stock (or unsellable inventory) and excessive amounts of a product that may not ever be sold. 
 What Types of Inventory Control Software Exist? 
 Barcode inventory systems 
 Barcode inventory systems update inventory levels in real time at the point of sale when workers scan an item. With barcode technology, inventory managers can eliminate time-consuming data errors that occur frequently with manual or paper systems for inventory counts. 
 Radio-frequency identification (RFID) inventory systems 
 RFID inventory systems use fixed tag readers for inventory tracking. Similar to barcode systems, RFID tags update inventory levels in real time when they are scanned. However, the difference between RFID and barcode systems is that with the former, multiple products can be counted simultaneously, while products can only be counted one at a time with barcode systems. While RFID technology systems might be pricier, they are dramatically faster than barcode scanning and can be very useful for managing large inventories.

Question 2

What are the Common Features of Inventory Control Softwares?

Accepted Answer

Below are key features of inventory control software that help replenish physical inventory in real time, eliminate inefficiencies, and optimize customer satisfaction:  
 Barcodes: Barcodes are an essential feature that can help maximize the efficiency of inventory management techniques. By labeling barcodes on every product, inventory managers can scan a product, which automatically categorizes the product and accounts for it in the inventory. The other option is manually counting each product, which is not only time consuming but can also result in human errors. 
 Automated ordering: Inventory management systems can automatically detect when a particular product is running low on stock and will instantly update the product quantity for the inventory. As a result, the software will prompt reordering of new stock. This can help businesses maintain the right inventory and respond to customer needs if a particular product is in high demand. 
 Order management: Retailers can manage all of their sales and purchases from within the software. This allows retailers to create packages and shipments, and can even send delivery updates to customers through the software. 
 Reporting: Inventory control software can provide businesses with reports on which products are the most profitable, how quickly workers are stocking products, and how often purchase orders are being fulfilled on time. These reports can point to any inefficiencies in the warehouse or supply chain. 
 Forecasting: Proper management of inventory levels helps forecast when products will be going out of stock and when there is an abundance. Proper forecasting metrics allow for efficient spending of a company’s resources. 
 Serial number tracking: Serial number tracking allows inventory managers to attach a code to each product and monitor its movement from the point of purchase up until the time of sale. If orders are delayed or a customer would like to find out where their shipment is, this feature can give them insight and reassurance that the shipment is on its way. 
 Product kitting: Product kitting is the process of bundling separate inventory items into one package. Inventory control software can help identify each item that needs to be packaged together to form the bundle and assign those packaged kits in a central location within the warehouse. This saves warehouse workers plenty of time by not having to walk around to different areas of the warehouse to package these items together. 
 Cloud-based inventory management: Cloud-based inventory management is a way of tracking inventory through a web browser. A stock system that can be managed through the cloud allows businesses to access inventory on any device. Real-time access to the amount of inventory enhances coordination among staff for quick and smart business decisions. 
 Internet of things (IoT) integrations: The connection of consumer devices with manufacturing machines helps supply chains excel. Inventory control software enables firms to generate insights, business intelligence, and cost-effective strategies. For example, IoT devices can be put on actual inventory or RFID labels. 
 Machine learning and artificial intelligence (AI): E-commerce chatbots share the availability of products to shoppers. These virtual agents use algorithms to inform customers of stock shortages and recommend other products based on their carts.

Question 3

What are the Benefits of Inventory Control Software?

Accepted Answer

Inventory control software improves the management of current inventory and eliminates any major inefficiencies in the supply chain. By accurately accounting for every product, businesses can lower costs, speed up fulfillment, and improve the overall production. 
 Optimize inventory levels at all times: Having excess stock costs companies a hefty sum. Warehouses can combat this issue by using inventory management software to only purchase products when they are in high demand. The alternative option is using manual labor to count each product and use conjecture on whether more stock should be ordered. 
 Track inventory numbers accurately: Real-time updates of inventory levels allow for more precise reports on available stock. Barcode scanning and RFID systems make this process seamless. 
 Fulfill orders on time to increase customer satisfaction: Issues such as inaccurate inventory records can cause higher lead times, which result in slower response to demand. Once this happens, stock inventory runs out and customers cannot place orders. This may cause customer disapproval and even a loss of business. Inventory control software will eliminate this issue by automatically alerting inventory managers when stock is running low, as well as automatically restocking these products. Therefore, shorter lead times will get more customers their products on time and increase overall customer approval. 
 Identify sales and losses by tracking sales patterns: Tracking stock is one of the best ways to keep track of sales patterns. This software provides an overview of which products are in high demand and which products are not selling as well. This will allow businesses to respond to customer demand by supplying more items that are frequently purchased and potentially discontinuing items that are hurting the business’ bottom line.

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