Traditional inventory management is one of the most boring and time-consuming aspects of business management and its recurrent nature can lead to expensive human errors, It is critical that companies be able to achieve cost, location and time effectiveness so that they remain competitive To achieve this, these companies must adopt cloud-based inventory management, Which is one of the ways to achieve its successes in running its business instead of managing routine inventory and to highlight the importance of cloud-based inventory management and its working mechanism, continue reading the rest of the article.

What is cloud-based inventory management?

Cloud-based inventory management is a software that provides companies with the ability to monitor and maintain their own inventory levels online. Traditionally, companies do it manually via pen and paper or Excel software, and while this setup can work with small businesses, larger processes will find it increasingly difficult to dedicate time to tracking.

How does cloud-based inventory management work?

Cloud-based inventory management works by creating a central record for each asset, to automatically update these records for each step in your execution order; From order creation to shipping, all without the need for human inputs, here is a brief overview of how it works:

1. Storage of data on the cloud

Remote servers store inventory data so that it can be accessed online. You can check your inventory from anywhere without having to be in your store or office.

2. Real-time updates

Whenever someone buys a product, returns an item or arrives a new inventory, the system updates immediately. Real-time updates keep your stock levels accurate, so you always know what you have.

3. Integration with other tools

Cloud-based inventory management systems relate to other tools they use, such as point-of-sale systems, online markets and shipping services, and these integrations simplify retail operations, making product sales and order execution easier.

4. Automated order

When inventory levels drop, the system alerts you or even places orders with suppliers. This ensures that common products do not run out and satisfy customers.

5. Easy access from multiple devices

Cloud-based inventory management logins and manages your inventory whether you're using a smartphone, tablet or computer.

Benefits of cloud-based inventory management system

The cloud-based inventory management system aims to reduce cost, increase capital efficiency and improve customer satisfaction, along with a range of other benefits, we recognize below:

1. Security and accessibility

Switching to cloud-based inventory management allows you to trust that your data is safe behind a wall of data protection measures and solutions and at the same time immediately accessible to people who need it, while this kind of interaction between security and accessibility is not possible with traditional asset tracking strategies.

2. Accuracy and error reduction

Since cloud-based inventory management software integrates with other software you may already be using in your business, it will be much easier to detect and track errors between sections and accounting errors, cloud-based inventory management software can also use barcode scanning to track inventory, making it very accurate compared to the traditional manual account of your assets.

These features mean that cloud-based inventory management software is likely to be more accurate and help you detect errors faster than traditional asset tracking.

3. Real-time updates

The integration of inventory management software with other software (including accounting software and point of sale) means that you can track your inventory in real time, as your asset count will be updated with each new transaction or purchase order, and through real-time updates on your inventory, you can stay ahead of the shortage of items and waste disposal as they occur.

4. Easy installation and ease of use

Cloud-based inventory management facilitates the installation of logistics software. The WMS provider is tasked with configuring workstations and scanners to communicate directly with the cloud server. The only thing a company contracting the software needs is to have a low-time internet connection and sufficient bandwidth in each of the devices in which the software will be used.

The said method exempts the IT department from spending time configuring computers. In addition, WMS execution and data storage are transferred to external servers, so the company does not have to pay attention to purchasing and maintaining equipment that operates the software.

5. See inventory in real time

Cloud-based inventory management allows warehouse stock levels to be updated in real time, as a result, work always knows how much product it has available, and stock updating is very simple, as new products are introduced 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 creates reports that enhance future decision-making.

Using this information as well as predicting adequate commodity levels, for example, the best time to introduce new products to the market, data analysis also allows the company to know the most sold goods as well as the availability of products in the warehouse, moreover, it analyses important aspects of the company, such as market seasonality and holidays that significantly affect sales.

Conclusion:

Cloud-based inventory management systems offer great advantages compared to traditional methods, thanks to the cloud entrepreneurs can build businesses that can be more scalable, can be more experimental, and can be more driven by usage.

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reference:

1.<<POS Systems for Small Business>>، kaleidoscot
2.<<POS Meaning – Definition of Point of Sale System>>, miamiherald