Inventory management software for eCommerce and Omni-Channel retailers, often a component of WMS, or warehouse management software, helps retailers keep track of important inventory quantities, locations, and granular product cost data. The right inventory management software helps make sense of the complexities associated with tracking product inventory quantities, locations, and costs, given the dynamic and ever-changing nature of product inventory. Intelligent WMS software can keep tight tabs on inventory across multiple warehouses and across multiple “lots” or groups of inventory received at different times, even if they were invoiced at different costs. Retailers with the right warehouse and inventory management tools beat their competition on their ability to scale operations with elasticity, reduce errors and losses associated with manual inventory reconciliation, and grow revenue and profits through operational superiority.
To get a more practical understanding of how a good inventory management system is critical to driving success for eCommerce or Omni-Channel retailers, consider the following scenario:
eCommerce Retailer Without Inventory Management Software:
No Inventory Accountability
Lack of warehouse management software means inability to create an audit trail, leading to inaccurate financial reporting with respect to basic reports like cost of goods on hand, pending receivables, etc.
Inventory Theft Risk
Inventory may go “missing” without any recourse available to the retailer. The greater the value and quantity of the inventory in question, the more significant the cost and risk associated with not having proper warehouse management software.
Losses Due to Inventory Error
Inventory errors are bound to happen with manual warehouse management, and the frequency of loss only increases with greater revenue volume. Issues stemming from oversold inventory and under-represented inventory become a daily operational nuisance.
Expensive and Inefficient Manual Processes
Manual processes to update inventory quantities, locations, and receivables result in extraneous resources being wastefully deployed to address issues that can be systemically addressed by warehouse management software.
eCommerce Retailer With Inventory Management Software:
Full Inventory Accountability
Track inventory costs, locations, quantities and leverage a full audit trail to hold employees who come into contact with inventory accountable for maintaining inventory accuracy.
Reduced Theft Risk
Systematically reduce or eliminate internal theft risk with granular tracking of each unit of inventory: when it was received, when it was last moved and to where, which employee last touched the inventory, and more.
Sustainable Revenue Growth
Exact inventory means reduced order cancellations due to products being oversold, and more orders being placed as inventory availability is accurately represented. When inventory is reliable, customers are kept happy, leading to repeat sales, referrals, and sustainable revenue growth.
Warehouse Process Automation
iOS App for Managing Warehouse and Inventory Activity
Ditch the bulky handhelds of yester-year in exchange for sleek, iPod touch warehouse management devices that are hooked up to a rugged Linea Pro Case with built-in barcode scanner and magnetic strip reader. Software and firmware updates happen on the fly, and as more functionality gets added to the warehouse management software, the features are seamlessly updated on your mobile warehouse devices. A built-in barcode scanner in the iPod sled allows warehouse employees to easily move, transfer, receive, and count inventory.
Seamless 3rd Party Integrations
Integrate your warehouse and inventory management software with logistics and storage partners, and send/receive data about your inventory in real-time. Seamlessly integrate with 3PLs (3rd party logistics), drop-shippers, and expand your business operations without having to deal with the fuss and complication of numerous software systems and countless manual data updates and uploads.
Financial Reporting Accuracy
Accurate warehouse and inventory data, specifically pertaining to inventory quantities and granular costs, lead to accurate financial reporting. Properly accounting for inventory and cost of goods is a critical piece of the operations puzzle for every retailer.