When it comes to managing inventory, the key to success is using the best inventory management system that fits with the scale, direction, and goals of your business.
As you look for the best inventory management solution, your company should look for one that can help you improve your bottom line while keeping your inventory balanced to prevent stockouts and overstocking.
But with so many variables to consider, how do you find the right inventory management solution? How do you determine what you need?
These are all great questions, so let’s look at the most important steps that you should take to find the right inventory management solution for your business today!
Step One: Understanding Your Inventory Needs
The first step in finding the right inventory management system is to build your distribution and tracking network around your products and goods. To do this, you need to look at your inventory to decide how much product is needed so you can meet the needs of the market. This will determine how much inventory you should carry at any given time.
The perfect inventory level is just enough that you do not have to spend extra money to maintain it, but not so little that you can’t fill orders.
After you’ve decided what you need, it is time to find the inventory system that will work for you. All too often, companies choose to hire someone to take care of inventory, but that’s not enough. Without a sound system, people can make mistakes and these mistakes can result in lost product and revenue.
Step Two: Understand Your Challenges
Before you begin to look at systems and prices, it is essential that you understand what you need your inventory system to do. As you work through your inventory needs manually, keep track of the struggles and questions you have so you can see how different system will help address the needs of your company.
When you understand what you cannot do on your own, you will have a better understanding of any workflow challenges the inventory system can manage for you. Another factor to consider is that inventory management systems usually take 3-12 months to implement, so your business will need to adjust your process to meet the future needs of your company as the system is implemented.
Step Three: Set A Budget
As soon as you understand what you need in an inventory management system, you will be able to set a budget for the system of your choice. Some inventory management systems are free, but others can cost thousands of dollars along with a range of monthly fees to keep the system active.
Each system will have different capabilities, and often times the more expensive solutions will have more functionalities so they will scale better than other options. The inventory system you buy should help you manage your current inventory challenges along with future obstacles. Once you choose a system that fits your budget you will also need to consider ongoing JDE Managed Services to keep your system working as efficiently as possible.
Step Four: Decide How To Integrate Your Systems
When you have a business of any size, integrating your apps and systems can be a difficult endeavor but having a streamlined approach can help your business scale in the long run. If your business is using a CRM or other type of software, the new inventory management system should integrate smoothly with what you already have and vice versa.
If the systems do not talk to each other, then you and your employees will have challenges connecting the data between different departments. When departments are unable to coordinate inventory and orders efficiently, orders often fall behind, resulting in unhappy customers and lost sales.
Step Five: Decide Who Will Access The System
Part of the process to find an inventory management system for your company involves deciding who will use the system in your organization. Some inventory management systems have fees based on the number of users who access it, so your leadership team will need to define required users before purchasing a license.
Along with employees, some businesses let their suppliers use the inventory system. By giving suppliers access, they can immediately see if you need inventory.
Sometimes, customers are also given access to inventory systems, especially if the business only has a few large customers who need to have immediate access to the business’s inventory.
You will have to determine who you want to have access to the inventory management system to ensure you purchase the correct number of licenses.
Grow Your Business With An Inventory Management System
While the decision about tracking might not seem important, it could become problematic if you wait too long and find that scanners and tags do not integrate with the inventory management system. You might find that it is less expensive to buy everything you need at one time in a bundle rather than wait and pay piece-by-piece.
Before you invest in any inventory system, it is essential to understand all of your options. Knowing how you want to track your inventory, what can be integrated, and who will work with the system can help your company provide the best product within your budget.