The Necessity of Cloud Based Inventory Management
If your company deals with hundreds or thousands of pieces of equipment and inventory across multiple locations, you may struggle to keep an accurate track of your assets if you aren’t using a cloud based inventory management system.
Inefficiencies in inventory management lead to lost resources and cost companies thousands of dollars. It’s estimated that downtime costs could range between $140,000 to $5 million an hour. You can prevent this crippling scenario with a high-quality management program.
Key Takeaways
- Inventory management systems prevent costly shipping delays, stock shortages, and lost resources.
- Moving to a cloud-based system expands operations through any-time remote connectivity and secure data storage.
- Implementing cloud-based software is more cost-effective than a comparative on-premise option.
A secure remote server makes it easier for management to access important information in real-time even when away from the warehouse or office. In addition to cost savings, working with Watkyn to develop custom cloud-based inventory software can improve your customer satisfaction and enhance operational efficiency.
The Problems Solved by Cloud Based Inventory Management Software
Although there will always be challenges working with inventory or the supply chain, some of the issues are deep-rooted and need a comprehensive solution to address. Failing to address these problems will cost your company money and efficiency, and this can increase your risk of losing customers along the way.
Expired Stock
When your company deals with stock items labeled with expiration dates, it’s vital to move date-sensitive products first. Expired or spoiled stock means lost profits. With cloud-based management, you can access real-time information to follow the life-cycles of your stock items. You can organize more efficiently and prioritize the items closest to their expiration date.
Empty Stock
Customers don’t want to wait on their orders, and you can’t afford to fall behind your competition. Without an inventory or supply chain management system, you will likely either struggle to predict demand or store too much inventory and have dead stock. A predictive system can follow the market trend and help preserve your working capital without missing the mark on consumer demand.
Excessive Stock
The roller coaster of demand can lead to unpredictable warehousing expenses for excessive stock. Dead stock could divert funds needed to store new inventory, and storage costs could rise dramatically as you attempt to make space for all your inventory. A smart inventory system supports effective business forecasting and storage needs.
The Benefits Gained Using Cloud Based Inventory Management Software
When the goal of a customized software application is to address the weak links in your company’s inventory processes, you will notice positive changes when the system is in use. Here are the greatest gains associated with a cloud based management software.
Convenient Installation and Access
Working with a cloud server provides an easier installation process. Rather than having to install hardware across all devices and ensure security, cloud based practices rely on logistics software that is configured to the various workstations and connected to an RF scanner.
These devices then communicate directly to the cloud server. The company needs an internet connection and enough bandwidth to cover the usage requirements for the devices.
Cost Reduction
The costs of the hardware to store the management system or to maintain or update the licenses for each application generally exceed the expense of a subscription-based software model. This model also reduces costs concerning the operators, as remote access to the platform eliminates the need to travel to a location and check stock or availability.
In addition, it limits the involvement of the company’s IT team. This reduces labor costs associated with database integrity, backups, and regular maintenance.
Adaptability and Scalability
As your business grows and changes, a cloud based inventory management software should adapt and scale to your new needs. You can either reduce or expand the functionalities of your program as necessary, such as during seasonal demand. You can also add or remove user licenses without having to re-address hardware or equipment.
Quality Data Analysis
You can optimize your inventory management practices through informed decision-making. Accurate and real-time information provides data analysis specific to your company’s performance and consumer trends. A thorough analysis of all your warehouse and inventory operations with detailed reporting enables accurate goods level predictions, seasonal impact forecasting, and assessments of product availability.
Real-Time Inventory Visibility
Rather than wondering about your stock for order fulfillment and traveling to a warehouse location, cloud based software updates and presents stock levels in real-time for instant access from an internet-connected device. Barcode scanning into the system updates the inventory levels and reports on where the items are located. This visibility can avoid stockouts and guide product replenishment.
Maximum Security
Safeguarding your data is a priority when working with consumer information, your financials, and inventory levels. On-site hardware could be prone to physical damage or remote cybersecurity threats, making it difficult to prevent the theft or disappearance of information.
On-site hardware also requires continual maintenance, updates, and backups to prevent errors or data loss. With a cloud-based solution, all data is located on off-premise, external servers and subject to automated backups. Stock updates or other information occurs instantly, preventing ordering errors or duplication concerns.
Omnichannel Strategy Support
When your company uses an omnichannel strategy, inventory management is a critical component of successful operations. An omnichannel strategy relies on multiple channels to sell products.
If you utilize a cellphone app, website, and brick-and-mortar store to market your goods, you need an inventory management system that can account for each of these transactions. Cloud-based systems can account for the various channels and use custom solutions to connect each with the warehouse.
Design Your Cloud Based Inventory Management System
Your business can use cloud based inventory management to optimize inventory and warehousing processes. You can efficiently manage stock levels, prevent loss from expired goods, and lower operational costs. Using a cloud-based system can improve customer satisfaction and employee productivity, but only when the software addresses the unique needs of your business.
Watkyn specializes in custom applications and can help design a management system to support your company’s goals and integrate with your current processes. Contact our team to find out more.
