Cloud Based Inventory Management | 3 mins read

6 Ways Cloud-Based Inventory Management Can Help Your Business

6 ways cloud based inventory management can help your business
Hanh Truong

By Hanh Truong

Whether a business is growing its brand, creating new lines of products, or simply maintaining stock to consistently meet its customers' demands, efficient inventory management needs to be implemented. Tracking stock gives business owners clear visibility into their movement of goods, as well as how to optimize their operations.

What traditionally used to be a laborious and time-consuming task can be streamlined with cloud-based inventory management systems. By using online tools, companies can save time and resources and reduce instances of human errors.

What is Cloud-Based Inventory Management?

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Cloud-based inventory management is the system of monitoring stock using online software. Many modern platforms provide features, such as order management, supplier communication, and theft prevention.

There are also specialized capabilities that can optimize specific business operations, such as food waste and cost tracking for restaurants.

Being cloud-based means that authorized users can access real-time data regarding their inventory, sales, and spending at any time and anywhere, as long as they are using an Internet-connected device.

This enables management teams to make quick adjustments to their inventory to keep up with demand and ensures they have a competitive advantage in their industry.

Benefits of Cloud-Based Inventory Management

Carrying optimal levels of the right inventory on hand is critical to a business's success. A cloud-based inventory management system will help owners maintain their stock and can also provide many more benefits.

1. Reduce Errors

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Inventory software has built-in algorithms that can solve complex calculations, collect large data sources, and transform metrics into valuable insights. This eliminates any room for human error since businesses will not have to depend on employees to perform these intricate tasks.

Additionally, staff members will be alerted if there are any mistakes in records, such as misplaced products or duplicated entries. Necessary adjustments can be made to ensure accuracy with product logs and reports.

2. Secure and Reliable Data

Since inventory data is stored online, businesses do not have to worry about manually backing up their information. Cloud-based solutions automatically save all updates to data that are made in the system.

Therefore, if one device is out of service, managers can access their latest metrics on another Internet-connected system.

3. Save Time and Money

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Many cloud systems can be easily integrated and do not need IT specialists to be installed. Also, most platforms are subscription-based and have add-on features that business owners can select for their specific operation, effectively reducing unnecessary spending.

And since cloud-based inventory management automates certain tasks, like data reporting, companies can save time and labor.

4. Scalability

As a business grows and more warehouses and store locations are added, executives will need to make sure that these sites and their new staff are equipped with the right system.

Cloud-based inventory software can make it easier for management to scale across their new locations since it can be effortlessly installed into new devices.

Common Capabilities of Cloud-Based Inventory Management

Depending on the software provider, there are many features that a cloud-based inventory management system can offer.

Software Functions

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  • Inventory Optimization - Management teams can access data regarding customer demand and sales to make informed decisions on what inventory products they need to stock and how many. This minimizes the chance of overstocking and understocking and guarantees that the company will meet shoppers' expectations.
  • Real-Time Alerts and Notifications - Alerts help businesses remain agile and ensures that they can respond quickly to time-sensitive events, such as low inventory levels and late delivery of goods.
  • Quick Reports - Reports are not only necessary to gain insight into employee and business performance, but executives also need to share them with shareholders, accountants, and government agencies. This capability ensures that accurate reports are generated with new data quickly.
  • Archive Historical Data - Having access to historical data about inventory allows business teams to have a better and broader view of their stock management and operations. This will help with trend identification and strategizing inventory control techniques.
  • Multiple Location Management - Companies that have more than one warehouse or store locations will be able to efficiently manage inventory if all their information from all sites is synced together in one system.

Hardware Features

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  • RFID Tags - Some inventory software providers offer radio frequency identification (RFID) tags, which is a system of using electromagnetic signals to identify products that have a specialized tag. This makes tracking and counting inventory easier and can allow for more robust data collection.
  • Barcode Scanners - Employees can scan a barcode and quickly locate the product they are looking for in the warehouse or storeroom. Scanners can also streamline inventory counts because when goods are scanned, stock levels can automatically be updated.
  • Custom Labels - Labels help with inventory tracking and ensures employees can identify products.

Inventory management tasks require time and careful planning, but with the right tools, such as cloud-based systems, businesses will be able to streamline these responsibilities and be more productive.