Inventory Management Automation: Benefits & Tips

Inventory management involves so many different, everchanging parts, which is why inventory management automation is so useful for those in the business. The best inventory management software combines technologies to streamline the tasks involved in everything from forecasting inventory to monitoring stock levels. 

We’re going to look at how an automated inventory management system can help your business be more efficient, productive, and accurate.

Coming Up

What Is Inventory Management Automation?

What are the Problems with Manual Inventory Management?

How Does Inventory Management Automation Work?

What are the Benefits of Inventory Management Automation?

What Issues Can Inventory Management Automation Solve?

How to Choose an Inventory Management Automation Tool?

What are Trends in Inventory Management Automation?

Wrap Up

What Is Inventory Management Automation?

Inventory management automation software leverages a digital version of inventory on hand to properly control and oversee its movement. 

The process begins with the creation of a “digital twin”of the inventory, which tends to happen by scanning the barcode on the physical items and tracking its movement from manufacturing to sale. 

Along with the digital library of goods, automated inventory systems use technologies like cloud computing and robotics for fulfillment and tracking.

What are the Problems with Manual Inventory Management?

Manual inventory management is filled with time-consuming delays and is also error-prone. 

With manual inventory management, employees are expected to keep track of stock, supply chain activity, financial data, and sales. That’s a lot of moving parts. It’s also impossible to keep track of in real-time. 

When it comes to inventory and sales, it’s beneficial to have financial automation software that connects with your existing systems. 

SolveXia is a complementary finance automation software that integrates with your tech stack to help you automate key finance functions related to your sales and activities, such as: rebates, accounts payable, and reconciliation to ensure everything is properly recorded and up-to-date. 

A solution like SolveXia offers a robust automation platform that removes the need for spreadsheet-driven data and disconnected systems. 

How Does Inventory Management Automation Work?

Inventory management automation works by connecting digital systems and providing real-time updates so that business leaders can make informed decisions regarding their inventory. 

Most warehouse inventory management software will integrate with your point-of-sale software (POS), order management tools, and finance automation software to provide a clear overview of how your products are moving from warehouse to retailer to customer. 

When products are running low on stock, inventory automation software will alert you to reorder inventory, or it may be set up to automatically make that purchase order on your behalf. 

Additionally, with data and analytics at your fingertips, you can assess how goods are selling, predict profits, and even forecast what items are in demand versus what items are underselling. 

As a result, you are better able to forecast cash flow, handle risk management, optimize outcomes, and best service customers’ needs. 

What are the Benefits of Inventory Management Automation?

The days of relying on spreadsheets for tracking are gone. While spreadsheets are impressive, they leave a lot to be desired, especially in terms of communication, collaboration, and speed. 

An inventory automation software connects all your data and systems, is accessible, and updated in real-time, so you always can rely on having the most relevant and accurate information at hand. 

By automating your inventory management, you gain plenty of advantages, including: 

1. Improved Efficiency

With employees freed up from being bogged down with their heads in spreadsheets, they have more time to focus on high-level responsibilities. This leads to increased efficiency overall. 

2. Enhanced Accuracy 

Along with improved efficiency, inventory management automation also boosts data accuracy. Manual data entry is error-prone, no matter how type A or meticulous a person may be. 

Plus, since the systems can be updated in real-time, you have a more accurate look at current inventory without having to risk looking at an old spreadsheet. With automation software like SolveXia, you can complete processes 100x faster with 90% fewer errors. 

3. Lower Costs 

Warehouse carrying costs add up, especially when you’re holding onto inventory for longer than expected periods. When you have data to accurately forecast demand, you can buy just enough stock to satisfy your customers, rather than holding surplus inventory. This is a major cost savings! 

4. Better Decision-Making Capabilities 

With the latest inventory updates, you’re better able to make decisions right when you have to about what to reorder or what you no longer need to purchase. It’s also possible to automate the buying process with an automated inventory management system that can be set to reorder once inventory hits a predetermined level. 

5. Scaling and Agility 

With an automated software at work, you can scale the business and meet the growing demands of higher transactions with ease. 

What Issues Can Inventory Management Automation Solve?

An automated inventory automation management system can optimize your supply chain, logistics, and overall finances. 

You can use inventory management automation to streamline and access: 

1. Inventory Data 

You can leverage inventory management automation software to create and manage SKUs, understand what inventory is performing most successfully, and review what items take longer to move than others. 

2. Demand Forecasting

Rather than wasting extra money on purchase orders and warehousing, these tools can perform demand forecasting so you know how much to buy and of what. With close tracking of inventory, you always know when to restock and how to handle future orders before the time comes. 

3. Safety Stock 

Automatic reordering for a safety stock setting means that you never have to be “out of stock” again. Not only is this good for business and profiting, but it’s also better for customer relationships. You can always satisfy a customer’s demand with this setting. 

4. Cash Flow Management 

Being able to understand how your inventory moves and using a connected automated finance software like SolveXia also improves your cash flow management. This leads to better decision making for the business overall, as well as positions you well to cover your expenses. 

How to Choose an Inventory Management Automation Tool?

Searching for the best inventory management software requires that you know what features to look for in the first place. 

There are many options to choose from, so along your consideration process, keep an eye out for the following features: 

1. Automated Reordering

Having a popular out-of-stock item isn’t desirable. You can protect your business against this situation with automated reordering technology. Thi way, you will receive stock notifications and upkeep vendor relations by always having the right volume of items ready to sell. 

2. E-Commerce Integration 

E-commerce integration is critical as it connects your data from your online store, including your CRM and POS systems. 

3. Alerts and Notifications 

Top-notch inventory automated management tools will update you with alerts and notifications regarding inventory. Alerts can be set for low inventory, shipping delays, and overstocks, for example. So, you’ll never have to guess or go digging to find out what’s the latest. 

4. Stock Transfer

For businesses that have inventory spread across locations and warehouses, automated stock transfers make it easy for distributors to locate where to pick up the stock. 

5. Order Management 

With automated order dispatch, you will know about any inefficiencies or order issues right away. Order management streamlines the entire process from scanning barcodes to printing shipping labels to delivering the product to the end customer. 

6. Reporting 

Let’s not forget about reporting functionality! Reports are what allow stakeholders and business leaders to visualize the supply chain management and inventory picture. Look for software that utilizes real-time data to generate customizable reports. 

What are Trends in Inventory Management Automation?

Automation across the board is no longer a trend, it’s a must-have solution for businesses that want to remain competitive. From finance automation to inventory management, digital transformation is reshaping how businesses service customers and employees alike. 

In terms of trends within inventory management automation, you can expect to see:

• 5G: 5G wireless technology adds speed for remote warehouses to automate efficiently. 
• Data analysis: Data analytics is increasingly vital for companies to make use of insights and predict future expectations. 

Wrap Up

Inventory management automation helps to reduce chaos and streamline key processes for businesses. It frees up your team’s time to focus on high-level responsibilities and improves access to data to derive important insights. 

A finance automation tool like SolveXia is a must-have solution that complements your inventory management goals and adds extra benefits for your entire business. You can also use SolveXia to keep track of rebates, accounts payable, revenue management, and execute reconciliations.