Key Benefits of Implementing Smart Inventory Management for Your Business

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The best way to make your inventory management smart is to use an inventory management system. An inventory management system is a type of business software that companies can use to transparently map all flows of goods and business processes in logistics and scheduling. In this way, the software can automate numerous work processes and thus simplify them considerably. 

What must an inventory management system be able to do? 

To transparently map and efficiently manage all material and goods flow in a company, a modern inventory management system must be structured as follows: 

  • The basis of inventory management software is always a database. This has the task of managing all transactions and master data. 
  • All of the company’s essential data sets are fed into the database. This includes, among other things, customer, goods and supplier data or bills of materials, i.e. the master data. 
  • The so-called transaction data is then related to the master data. These are the goods or, for example, monetary transactions. All movement data is recorded as part of separate data sets.

Thanks to their efficient components, inventory management systems enable companies to access current data in all areas. 

Key benefits of implementing an inventory management system 

An inventory management system can become a success factor for your company. The following reasons for introducing a corresponding software solution: 

  • All products can be recorded. 
  • Inventory levels are known at all times
  • The software ensures comprehensive warehouse management. 
  • Efficient picking possible 
  • Companies can carry out immediate data evaluations 
  • Bookings can be made in the system using the cash register system or e-shop interface. 
  • Some inventory management systems can manage several warehouses at once. 

Thanks to these many valuable properties, the range can be optimized according to customer requirements. Inventory management systems can not only simplify and automate numerous work processes in your company many times over. You also benefit from significant time and cost savings. 

Many inventory management systems are also provided with many practical additional features, which optimally support you in planning and controlling your materials management:

  • Customer and supplier data management
  • Integrated online banking
  • Integrated cash book
  • Open item management
  • Data exchange interfaces (e.g., DATEV)
  • Dashboards with current sales overviews
  • Online shop interfaces
  • Integrated time tracking

If you decide to use a modern inventory management system, you will benefit from an efficient tool to efficiently plan and control important business processes in the area of ​​materials management in your company.

Inventory Management System vs ERP: What Are The Differences? 

Inventory management systems are often equated with programs in Enterprise Resource Planning (ERP). But that is not entirely correct. Their range of modules and functions can relatively clearly distinguish both types of business software. 

An inventory management system is generally understood as a combination of at least two modules: 

  • Purchase and sale with warehouse financial accounting. 

An ERP system, on the other hand, contains software modules and functions in the following areas: 

  • Inventory management, 
  • Production planning and control (PPS), 
  • Personnel management or human resources (HR), 
  • Finance and Controlling 
  • Sales. 

While inventory management systems are primarily focused on the planning and control of material and goods flows and warehousing, ERP systems can take complete corporate resource planning into their own hands. 

ERP software can be of great help in various operational processes and fulfil various tasks. Since the solutions are being expanded by more and more modules and functionalities in ongoing digitization, ERP systems can now optimally cover numerous business areas. Most solutions on the ERP market are modular, making them highly customizable to the unique needs and requirements of each business.