Why should you embrace technology in inventory management?
- Increase economies of scale
- Improve efficiency
- Optimize time usage
One of the most important aspects of all businesses nowadays is the concept of digitization. This simply means making use of digital software and applications to further improve the inner processes of the company. This includes a lot of systems including inventory management. In the Philippines, there are a handful of businesses that have started with these and are getting ready to digitize a wide variety of processes.
When you’re a product-based company, inventory management is one of the most important and obvious parts of the business. It is also one of the most complicated, especially if you don’t make use of systems and automation. A lot of companies haven’t changed their inventory management schemes because of a very old saying “if it’s not broken, don’t fix it.” But that entails waiting for something to go wrong before doing something about it.
Smart companies will take the initiative and improve on what they can right away. And for most businesses related to retail, inventory management is one of, if not the most, important want to optimize as soon as possible.
Increase Economies of Sale
With the use of technology, particularly automation, your inventory processes will not be left behind as the company grows. Inventory management systems are able to scale with the growth of your company. This is because of the somewhat complex yet all-encompassing nature of many systems related to inventory management. This will also help in making the transition from a small business to a medium or large company a lot easier.
Keep in mind that business models are limited only by the minds and the technology that is present at the time. Manual entry of inventory is surely outdated and very labor intensive. Other administrative tasks that focus on unnecessary jobs are not scalable. If you still have these kinds of activities going on in your company, then you’re most probably not maximizing the concept of scalability.
As long as you’re wasting time on something that can be done faster by someone or something else, then your processes are unscalable. This is where advanced inventory management systems come in. These systems are great for taking over the more administrative and simple tasks, giving way for your employees to focus on more important jobs. Data analysis will also be a lot easier because a machine with superior logical capabilities will be doing it for the whole team!
By incorporating inventory management systems into your company, you’re introducing new tools and processes that will greatly improve the businesses efficiency. The typical company has a lot of efforts that go into inventory management in terms of time and money—both of which are valuable resources for any business.
Most things that are done manually are time-consuming, complicated and incredibly costly. It will also lead to more work for your labor force which can quickly lead to burnout. By using automation, you streamline these tasks and enable your business to complete them in a more efficient and effective manner.
By making use of technology to do most of your tasks, you decrease the chances of human error. Stop with the use of spreadsheet templates and manual entry. Oftentimes these practices are prone to human error that leads to over- or underselling. Even simply leaving a few changes unsaved due to neglect can lead to drastic problems in the whole inventory process.
The best thing that inventory management systems should have is the ability to integrate with other systems. In the Philippines, the point of sales system is used by both retail businesses and restaurants to further optimize their inventory tracking and processes.
Even inventory tracking is made easier and more effective with the use of inventory management systems. Manual tracking is very hard and time-consuming. Oftentimes it is always behind the times and inaccurate. With the use of inventory management systems and other forms of technology, you not only make the tracking of inventory more precise, but you’ll also be able to track them over a larger scale—from the manufacturing stage, all the way to the store shelves.
Optimize Time Usage
With systems more inclined to adapt to your business’ growth and systems and processes becoming more efficient and optimized, that only means you have more time and more people to do the important aspects of your business. Automation brings opportunities for your employees to grow and be responsible for more demanding work. At the same time, it also brings about more time, tools and processes that can lead to your company grow even more!
Many companies believe in their own processes which have brought them to where they are now. Although it’s their right to keep them and do what they can with them, it’s also their duty to find better, more improved ways to grow their company.
Technology is probably their best bet in further optimizing their processes and tasks. And yes, they have the right to stick with what they know, but if it’s true growth and improvements that they seek, then making use of the latest systems for inventory management in the Philippines is the best option!