Manufacturers use inventory management software to automate the tracking of their inventory assets, including receiving and shipping as well as work in progress. Inventory Management Software allows the manufacturers to select the costing methods that will help to stabilize costs for accounting purposes. Many of today’s inventory management systems allow companies to track products using barcodes. By scanning these barcodes, manufacturers can check quantity in stock, locate product, update quantities in a cycle count, reorder product, receive product, and much more.
Here are 5 reasons why you should implement automated inventory software to track your inventory procedures:
- Costing: Inventory represents one of the largest investments a manufacturing company will make, along with the labor costs. It helps companies keep cost low by minimizing the amount of necessary parts and products they keep on hand. It also helps a company from losing sales by not having enough products on hand when a customer calls.
- Increased Efficiency: Inventory management software allows for the automation of many inventory-related tasks which increases a business efficiency and possible increased profitability.
- Updated Data: Real time data on inventory conditions and levels allows company employees to access the software through a mobile device, laptop or PC to check on current inventory status.
- Data Security: By setting up restricted user rights companies can allow many employees to assist in inventory management. Employers can give employees access to allow them to receive products, make orders, transfer products and do other related tasks. This can speed up the inventory management process and the accuracy of the inventory stock status.
- Warehouse Organization: Inventory management software can allow you to track inventory at multiple locations. You can see how much inventory you have at each warehouse and have the ability to drill down and see where those items are located by row, shelf and bin.
For more information about implementing an automated inventory system in your business, call LSL CPAs at (714) 672-0022.
