For trading companies, the movement of goods to and from the warehouse is needed. Therefore, inventory management is needed with the support of warehouse applications that are useful for optimizing the movement of goods.
In more detail, warehouse management is useful for identifying all inventory transactions and stock quantities more quickly and accurately, even in real-time.
Warehouse management is also useful for optimizing the storage location for goods and can carry out the distribution of goods properly.
To make warehouse management run better, goods trading sector companies need software in the form of applications that allow company performance to be more efficient.
Below will be explained in more detail the challenges of trading companies in managing inventory to using the inventory feature in the software.
Difficulty Trading Companies Managing Inventory
Amidst the fast pace of consumption, trading companies are often overwhelmed to meet consumer needs. As a result, the company lags behind its competitors. Here are several challenges for trading companies in managing inventory or inventory of goods:
Goods Expiration Period
If a company handles items with an expiration date, such as food or cosmetics, they can rot or become unusable if they are not sold on time. A broken product means that the company’s investment is wasted and of course no profit has emerged.
The expiration date isn’t the only way a product has become damaged. Deadstock is an item that cannot be sold for several other reasons, such as out of date or a product that is no longer relevant. Often an item is declared “dead” after being stored on the shelf for 12 months.
Expensive Storage Costs
Warehousing costs fluctuate, based on how much the company keeps over a certain period. If a store has too many products at once or ends up with products that are difficult to sell, storage costs will naturally go up.
Location of Messy Items
The placement of items that are not by their place not only makes the warehouse look chaotic but also reduces the quality of customer service because the search for goods in the warehouse takes longer.
The problem of the location of goods generally gets worse over time and there is neglect. As new items continue to add and space is running low, the problems will also pile up.
Demand for Goods Up and Down
There are so many factors that cause the demand for good goods to fall. If there is a global financial problem that results in a decrease in people’s purchasing power, the inventory of goods in warehouses is no longer sold and makes the company lose money.
Inefficient Warehouse Layout
Each industry has its own way of arranging the layout of goods in the warehouse. Not necessarily a warehouse layout that is suitable for a retail business can be used in manufacturing or rental business warehouse.
The warehouse layout that is not by the type of industry often results in obstruction of the traffic of goods entering and leaving the warehouse. In the end, customer service will be disrupted.
The warehouse inventory application is a web-based application for managing and recording goods in and out of each warehouse in one company. Warehouse inventory application features include live inventory calculations, tracking product sales, and importing bulk inventory data.
An essential warehouse application owned by a trading company for managing merchandise inventory which is idle assets or assets waiting to be issued or sold.
Benefits and Purpose of Warehouse Application
One of the biggest challenges with running a trading business is the need to manage inventory effectively. The problem is that as the business grows, this challenge increases.
To be able to increase sales with various sales channels so that the business grows, the use of warehouse applications is a fundamental requirement for a company. Here are some of the benefits of using a warehouse application.
1. Balance Settings
The first advantage of using the software is that it helps to manage balances easier. In the warehouse application, there will be a special feature that contains a recap or report from company finances.
Thus, balance management becomes easier. For example, making sure the stock or quantity of goods and so on becomes more organized so that you don’t have to worry about lacking balances and so on. This will make the company’s finances healthier.
2. Accurate and Efficient
One of the most basic benefits of inventory tracking is that it reduces the amount of inventory a company must have while increasing order accuracy. By reducing the inventory stored, companies can save a lot of money and effort.
Some companies that use warehouse applications can actually close one or more warehouse locations thus saving money. Also, warehouse applications are useful for tracking inventory levels carefully, including recording what items and how many are needed shortly. Adopting some of these strategies can increase a company’s ROI.
Using software that manages stock automatically makes it very easy for companies to do regular recapitulation or bookkeeping. Why? Because usually, the application is integrated directly with recording financial statements.
In other words, if there is an entry or release of an item, it will be immediately detected in the report so that the stock will be updated automatically. No need to make manual changes anymore so you don’t waste time. The reports made are more accurate and neat.
3. Cut Costs
Fewer errors mean fewer resources spent fixing them. Higher accuracy equals less error which also means less expenditure on damage control.
Organizing also reduces the money spent on storing unnecessary items. Since the system identifies the exact quantity of a particular product, the warehouse manager can rest easy knowing important things to update automatically.
This opens up space for a wider range of products and reduces money spent on storing goods. Integrating automation into the inventory management process also saves a lot of time and money. Fewer hands are needed to pick up, pack, and prepare items for shipment when technology systems are put to good use.
4. Increase Visibility and Data Planning
The features in the warehouse application allow easy data transfer. In conjunction with a central data warehouse, companies can build their data assets to more closely analyze what’s going on in the business.
Using this information, companies can answer questions such as where goods are going and what customers are being served.
In today’s high-tech business world, business intelligence is the key. This allows companies to fine-tune their marketing processes and reach, ultimately increasing conversions and driving profits. So while warehouse management is very helpful on the production side, it is also useful on the marketing side.
5. Preventing Excess Stock
Maintaining a balanced inventory level is a daunting task an inventory manager has to deal with daily. Leaving inventory levels running without routine checks can quickly lead to necessary over or understock.
One bad scenario is that you don’t order enough products so they run out of stock and result in angry customers. Having too much inventory and not being able to move it takes up warehouse space.
The guidance software can step in to prevent the occurrence of this dreaded event that could destroy the entire supply chain.
6. Coordination of Several Locations
Warehouse application allows a company to consolidate the many warehouses it has. In the same way, this system can help a company to manage multiple locations effectively.
If a company has 10 or more warehouses, inventory tracking software can be applied to each warehouse to provide better big picture analysis for making long-term decisions.
7. Saving time
Businesses are always looking for ways to save time and reduce labor costs. The warehouse application can be used to scan item codes so that you no longer need to use manual processes such as typing in product numbers or box numbers one by one.
Thus, companies can save time scanning item codes and excess time can be filled by doing other jobs.