What makes inventory management important in the Philippines?
- Dynamics of inventory management
- Benefits of effective inventory management
- Things you’ll avoid with an effective inventory management
Any industry that deals with a lot of merchandise require some sort of inventory management. In the Philippines, everywhere you go, you can find unique stores; in every other corner, you’ll find franchise stores. After every intersection, you’ll probably find a convenience store. Even though each store is different, they should all have their own inventory management system.
With that being said, working with an inventory is not a walk in the park. Almost nobody would willingly choose to do this work—leading to some businesses completely ignoring it. In the Philippines, point of sale systems are prioritized more than your typical inventory management efforts. Of course, the POS (point of sale) system is the phase when a customer hands over their payment for the goods or services that they bought from you. This is an essential part of all the sales and retail efforts that businesses do, but without proper inventory management, problems will almost surely arise, preventing you from having a flawless POS system.
The Dynamics of Inventory Management
An inventory management system is used to oversee all of your business’s inventory and stock items. Through this, you should be able to track and manage every single item on your inventory through its lifespan. Starting from the storage warehouse, you can keep track of an item’s journey all the way to a customer’s shopping cart.
Managing your inventory has gone through a lot of changes. It used to be done primarily on paper. With people listing items down manually and creating a main spreadsheet that lists each item, their amount, and how much they cost. With the help of technology, particularly MS Excel, it became a lot easier. Soon enough, businesses moved forward by relying on specific programs. Inventory management systems today are composed of highly versatile software that makes all the usual inventory activities easier.
An inventory management system should have a way to identify each item. Most of the time, they rely on barcodes. The system uses the barcodes to track down the items as they come and go. The usual software makes use of barcode scanners, but some systems are integrated into a smartphone application! Take note that an inventory management system needs a central hub which stores and analyzes all the data of your inventory. This database can also be used to generate reports and be connected to other software for different uses such as accounting.
An inventory management system will make a lot of your things easier for you, especially when your employees are well-trained and educated regarding inventory management.
Benefits of Effective Inventory Management
Many businesses in the Philippines have inventory management issues. Usually, this is because they don’t respect the work that is required for it to be effective. Making sure that you have effective inventory management can bring your business many benefits, and here are a few of them:
- Accurate Order Fulfillment – Particularly for e-commerce, effective inventory management, along with a good point of sale system in the Philippines, will ensure you won’t ship the wrong item when a customer orders for a brand. It will also prevent you from mistakenly showing that you don’t have an item in stock when in fact you have them.
- Customer Satisfaction – Being transparent with your customers is important. By being able to keep track of the status and whereabouts of your inventory, you’ll be able to tell your customers the right information pertaining to the item that they bought. In that regard, when they receive their item, they’ll get exactly what they want.
- Better Planning and Organization – Knowing what you have and when new stocks will arrive will help greatly for when you order new stock from storehouses. With that, you’ll have an easier time preparing your stock for the long run!
Things You’ll Avoid with an Inventory Management System
Along with the benefits that an inventory management system provides, another important part of it is what it helps prevent. Maintaining inventory is not as easy as it sounds. However, as long as you have a reliable inventory management system, you’ll easily avoid these problems:
- Stockouts – These happen when you run out of an item. In any case, this is one of the worst things that can happen to you—especially when the items that are out of stock is in demand. These prevent you from making money, and you can also lose your customers!
- Overstocking – The opposite of stockouts, this happens when you end up with too much of a single item. Take note that be it general merchandise or food (especially food), the longer it’s unsold, the higher the chances that you’ll have to write it off as obsolete inventory. Items can go out of style, lose their viability, or of course rot—making them automatically unsaleable and therefore lost money.
In the Philippines, there are still a few businesses that don’t see just how important inventory management is. Not only does it provide a number of benefits, it also prevents a number of work problems through easy solutions!