Why Robust Inventory Management System is Important for Retailers

Inventory Management

Last Updated on 2021-06-21

Inventory management is the foundation of any successful retail business. A robust inventory management system helps ensure satisfied and happy customers, reduce costs, and increase profit margins by minimizing out-of-stock, reducing shrinkage, simplifying processes, and improving forecasting. To implement an ideal inventory management system in your retail business, barcode technology plays an important role. 

Best Practices for Inventory Tracking Systems

The importance of inventory tracking can be understood from the example that for every $1 they sell, US retailers are sitting on $1.43 in inventory. Another report also states that 43% of small businesses still don’t use an inventory tracking system at all or are using obsolete manual methods.

If you are planning on implementing an inventory tracking system or making the most out of the existing one you are using, here are some best practices.

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Technology is the key

If you still don’t have a barcoding system, consider getting one. Prior to implementation, consider which type of barcodes would work best for your business. The barcode type depends on the amount of data you need from it. There are 1D barcodes and 2D barcodes, and the latter can store more significant amounts of data and a more extensive character set than 1D barcodes. 

Also, consider physical aspects, such as the labels’ durability, their placement on the products, and the material used.

Try before you buy

Whether you are deploying your barcoding system or implementing mPOS, try before you buy. Test your devices to confirm scanning accuracy and performance for all barcodes. Can they support scanning for a large variety of barcodes that could be used for differing assets or products? Finally, confirm data accuracy and make any updates before deployment. 

Traceability – why it is important 

Often used interchangeably, inventory tracking and traceability are actually very different. While inventory tracking refers to the record-keeping of products, traceability is specific to operator performance. 

Inventory traceability is critical for operational metrics, such as compliance with safe practices, uptime, throughput, and more. Today, the bare minimum requirements may be fulfilled by simply tracking the shipment of finished goods or receipt of raw materials. Still, the importance of traceability increases substantially when each movement and value-adding activity is entwined in an end-to-end historical chain. The increasing demand for inventory accuracy is another critical aspect that has emphasized a need for enhanced inventory traceability. 

Considerations on Mobile Inventory Management 

Today, 96% of all adult Americans own a mobile phone, a study suggests. Hence, it becomes essential for vendors to provide their workforce the features and services that work on mobile devices. And, mobile inventory management is one of them. If you are planning to implement mobile inventory management, consider the following:

Usage of Mobile Devices and the Cost Factor 

Apart from giving the power of mobility to your workforce, a mobile inventory management tool is more economical than the traditional one. The mobile inventory management application can be accessed directly from employees’ smartphones (or business smartphones) without the cost of expensive handheld scanners.

It is Different from Traditional Inventory Management

Traditional inventory management systems rely on workstations and PCs, with a store employee being present at the workstation to track inventory. With a mobile inventory management system, an employee can access the inventory details even from the warehouse, enabling a more productive environment. 

Another difference is the way orders are placed in both systems. While the traditional method involves placing an order using calls, the mobile inventory management tool allows inventory managers to place an order using the mobile app whenever stock is low. 

Don’t Miss Out on the Typical Features

While you choose a mobile inventory management system for your business, confirm real-time inventory data functionality availability to allow all authorized users to quickly access all the databases, irrespective of their location. To keep errors at bay, implement an inventory management system that has integrated a commercial barcode scanning SDK. There is no need to perform tasks manually as all the processes can be carried with barcode scanning. Other essential features that need to be included are location tracking and document capture with a mobile camera.

Try the Dynamsoft Barcode Reader SDK

Find out how Dynamsoft Barcode Reader SDK, an enterprise-grade barcode scanning SDK, strengthen your inventory management system by downloading its free 30-Day trial. With our SDK, you can create high-speed and reliable barcode scanner software to meet your business needs. Contact us to know more.

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