There are several reasons why inventory management is crucial to your business, for more information beyond the resources listed here you can visit partech.com.
The first reason is that it can increase the efficiency of the company. If employees are more efficient, then the health of the business will be a lot better. Without the right inventory management program, you will be paying your employees to spend a lot of time going through files, manually writing reports, sending out the spreadsheets, and visiting the warehouse for confirmation. This can be a large waste of resources, both time and money.
The second reason is that you will have the ability to know exactly where your inventory is located in the warehouse. If you have more than one location wastage is reduced even further. When your inventory is accurately managed, it will help the company avoid any problems in locating the inventory like tracking down a product for a customer.
The third reason is an increased sale close rate. This is because you will be able to properly manage the inventory that you have in your business. Accurate records on inventory numbers and location will help avoid embarrassing errors when quoting and directing customers.
The fourth reason is that you will always be able to meet your delivery dates. A company will quickly gain a poor reputation if they are unable to deliver items to their customers on time. This might happen because there is a lack of knowledge about where the items are between the store and the warehouse. However, this is avoidable with a proper inventory management system.
The fifth reason is that it will make the process of re-ordering your products a lot easier. Copying purchase orders into word documents can create a number of errors and time wastage. With a good inventory management system, copying data such as spec, description, item numbers etc, from recent purchase orders is easy and will help ensure there are no errors.
These reasons show why an inventory management system is crucial to your business.