Benefits of using a cloud-based inventory management systemUsing this information, as well as predicting adequate commodity levels, a company can determine, for example, the best time to bring new products to market. Data analysis also allows the company to know the best-selling merchandise as well as the availability of products in the warehouse. Moreover, it analyzes aspects that are important to the company, such as market seasonality and holidays that greatly affect sales.
Inventory management is one of the most tedious and time consuming aspects of running a business. Its repetitive nature can lead to costly human error, so it is critical that companies can achieve cost, space and time efficiencies in order to remain competitive. Adopting cloud-based inventory management is one way to achieve this. The concept involves moving software or hardware from an internal server or computer to a third party data center.
How does cloud-based inventory management work?
Cloud-based inventory management is software that provides companies with the ability to monitor and maintain their inventory levels online. Traditionally, companies do this manually via pen and paper or Excel. While this setup can work for small businesses, larger operations will find it increasingly difficult to set aside time for tracking.
Cloud inventory works by creating a central record of each asset. These records will also be automatically updated for each step in your fulfillment order; From order creation to shipping, all without the need for human input.
Benefits of a cloud-based inventory management system
A cloud-based inventory management system aims to reduce cost, increase capital efficiency, and improve customer satisfaction, which comes along with operational efficiency, cost savings, and many other benefits to the supply chain, which we learn about below.
1. Security and accessibility
By switching to cloud-based inventory management, you can be confident that your data is secure behind a wall of data protection measures and solutions and at the same time instantly accessible to the people who need it. This kind of interaction between security and accessibility is not possible with traditional asset tracking strategies.
2. Accuracy and error reduction
Because our cloud-based inventory tracking software integrates with other software you probably already use in your business, it will be much easier to spot and track errors between departments and accounting errors. The cloud-based inventory software can also use barcode scanning to track inventory, which makes it highly accurate compared to traditional manual counting of your assets. Combined, these features mean that cloud-based inventory software is likely to be more accurate and help you catch errors faster than traditional asset tracking.
3. Real time updates
Integration with other software (including accounting and point-of-sale software) means you can track your inventory in real time, as your asset count will update with each new transaction or purchase order. With real-time updates to your inventory, you can stay one step ahead of item shortages and eliminate waste as it happens.
4. Easy installation and ease of use
Cloud-based inventory management facilitates logistics software installation: the WMS provider is tasked with configuring workstations and scanning devices to communicate directly with the cloud server.
The only thing that the company that contracts the software needs is that you have an internet connection with low latency and sufficient bandwidth on each of the devices on which the software will be used. This way, the IT department does not have to spend time configuring the computers. In addition, WMS execution and data storage are transferred to external servers, so the company does not have to bother with purchasing and maintaining the equipment that runs the software.
5. See inventory in real time
Cloud-based inventory management enables inventory levels in the warehouse to be updated in real time. As a result, the business always knows how much product they have on hand. Updating inventory is very simple: new products are entered into the system by scanning their barcodes.
6. Data analysis facilitates inventory management
Data analysis is particularly useful for optimal inventory management, as it facilitates improved decision making and effective demand planning. Cloud-based inventory management software analyzes all warehouse operations and generates reports that enhance future decision-making.