Inventory Management is about knowing what you have in stock, and where it is located. Now a days, most small businesses implement some sort of inventory management in their operations, but unless it's integrated with your back-office systems, an inventory management system alone will not be that effective with optimizing your inventory. Another important task for any inventory management system is to ensure the asset value on your organizations financial reports match.
To optimize inventory management, leading companies integrate their inventory software directly with back-office and accounting systems. This integration allows your organization to optimize your operation, assisting in streamlining the human element in inventory management, while also removing the burden on the purchasing manager to always keep your best selling products in stock. Inventory Management software provides a competitive edge, and is a must for any ecommerce or product intensive business. A well implemented Inventory Management System will be smart enough to plan when to purchase in an effective way, eliminating uncertainty and minimizing labor costs by trimming down on the human element tied to manual reconciliation.
Determining the right inventory management solution for your business and a strategy for integrating it with your back office systems requires a competent and well thought out strategy, usually it is a good idea to hire an IT Consultant or purchase implementation services from the company you are purchasing the solution from.
To achieve maximum benefits, your integrated solution must be dynamic or real-time, customizable, easily reconcilable and built to scale.
Here are three key benefits to integrating your inventory management software with your accounting and back-office systems:
Optimizing inventory to meet product availability and ROI goals
Saving money from unexperienced purchasing decisions
Stating inventory accurately in financial reports
There are of course other benefits to integrate your inventory and back office systems, these three can provide a significant impact to your organizations bottom line.