Automated Inventory Control | 4 mins read

What Automated Inventory Control Can Do For Your Business

what automated inventory control can do for your business
Chloe Henderson

By Chloe Henderson

Nearly every business function is transitioning to the digital platform, including inventory management, making it difficult to operate using traditional tracking strategies.

While manual methods may suffice temporarily for small businesses with limited inventory, it cannot withstand the data influx that comes with expansion. Therefore, organizations should implement anautomated inventory control system to better manage their product data and administrative tasks.

What is Automated Inventory Control?

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Automated inventory management uses software to streamline the various operations needed to source, store, and distribute stock, including-

  • Filing replenishment and purchase orders
  • Delivering customer orders
  • Assigning order fulfillment operations
  • Tracking inventory across sites
  • Incorporating inventory and sales data from each channel
  • Managing products throughout sales channels

Management systems can also generate reports on specific inventory, invoices, and work orders, significantly reducing the manual labor needed for administrative tasks.

By automating inventory control, companies can minimize management and supply costs, as software eliminates the need for traditional paperwork. Originally, inventory management was documented using spreadsheets, pens, and paper. This created another replenishment need and made it easy to misplace reports. With software, businesses can ensure they do not lose vital documents by establishing a digital, organized filing system.

3 Reasons to Automate Inventory Control

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Given the fast-paced work environment that modern businesses are in, traditional tracking methods are no longer sufficient to keep up with inventory needs. Aside from remaining competitive, switching to automated inventory control solutions enable companies to-

Maximize Scalability

Manually writing down quantities on a spreadsheet is time-consuming and inefficient. In order for a company to expand, they need cloud-based inventory management systems that can monitor operations across multiple sites simultaneously.

Automated inventory systems streamline data exchange, communication between departments, and clerical work. With software, businesses no longer have to email or call employees to exchange notes and inventory information. Companies also do not have to worry about missing orders after operating hours, as management solutions work around the clock aggregating real-time data.

Instead, businesses can focus on more extensive tasks that require their skills and expertise, while the management software orchestrates repetitive inventory procedures.

With automated solutions, the more information, the better, as software can use historical and current data to improve its algorithms and analyses. On the other hand, collecting more physical documents becomes overwhelming and makes it difficult to manually extract the most critical information.

Minimize Human Error

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Manual tracking methods often lead to increased human errors, such as miscounts, miscalculations, and even misreading someone's handwriting. This can lead to costly inventory errors, such as over or understocking products.

With traditional inventory control, an employee must manually consolidate data each day and update systems. However, this can pose a problem if managers place a purchase order before records are updated.

With automated inventory control, companies can improve their-

  • Visibility
Software tools collect real-time inventory data from established systems, expanding the company's visibility on sales and usage. This enables managers to improve their ordering strategies to reduce the risk of stockouts, backorders, and excess products.

By eliminating manual tracking methods, companies do not have to worry about reconciling discrepancies due to lost paperwork or human error.

  • Tracking
Businesses without inventory software may find it challenging to differentiate returned and transferred products from sales. This can lead to inaccurate inventory counts, orders, and financial reports.
Inventory systems note transfers, returns, and exchanges across all locations so management can easily track products throughout the supply chain.

Save Time

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The time spent on overseeing repetitive tasks, such as aggregating inventory data from several locations and systems, can quickly add up. This can require even more time as a business expands, increasing labor and management expenses.

Software systems have the ability to collect and share more data in a shorter period of time than several employees using manual techniques. This enables organizations to make quick data-driven decisions at any time.

By automating standard processes, employees can dedicate their time and expertise to larger, more demanding tasks. Businesses can then improve their customer service and expansion efforts.

Why Businesses Should Forget Manual Inventory Control Methods

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Inventory tracking software makes counting, asset tracking, and locating products easy and straightforward. With software, employees no longer have to rummage through stacks of paper and call around to warehouses trying to find stock and exchange information.

Instead, businesses can integrate tools, such as barcode scanners, to automate data entries. This information is uploaded to the centralized interface, where employees, regardless of their location, can access it through the cloud. By replacing manual data logging with the best inventory practices, companies can streamline counts and improve data accuracy.

Software not only reduces human error, but it also pinpoints anomalies by generating trends from historical and real-time data. If the system detects an error or issue, it alerts users that they must take action. This enables organizations to resolve problems immediately, avoiding long-term repercussions.

By consolidating all inventory information, management solutions can generate detailed reports on various elements, such as profit margins, turnover rates, and stock levels.