1. It increases efficiency
Staff efficiency can greatly increase the overall health of the store. Without organized inventory management, a lot of time is wasted locating files, emails etc. On the other hand implementation of a good inventory management system leaves personnel with time to focus on more valuable tasks and information about store operations will be easily accessible.
2. Inventory visibility
An organization with multiple locations incurs costs and delays when store personnel have to keep calling each other to find that one piece of inventory, or to confirm that it is actually there. Accurate inventory management will eliminate any issues with inventory location, including being unable to track down that one item a customer wants.
3. Avoids loss in sales
Inaccurate inventory management can lead to lost sales. There are plenty of ways things can go wrong, such a store personnel telling a customer an item is out of stock, only to discover it is in stock later, or vice versa. If you‘re confident in your inventory management system, these types of lapse will become few and far between, and only because of human entry.
4. Easily meet delivery dates
You also don‘t want to make the customer wait for you to receive a shipment from the supplier simply because you didn‘t know when the supplier shipped fresh inventory to your location. With accurate inventory management, you will be able to track your inventory precisely, even if it‘s en route to the store.
5. Easily change vendor order frequency when needed
The flip side of not having enough inventory is having too much. Storage can be expensive for some organizations, and the last thing you want to do is dispose of just because you over-ordered a specific item. Keeping track of exactly how much you have of everything along with how much you have on order can allow you to change your order frequency with the supplier in a timely manner so that you don‘t have too much of a good thing.
6. Easier reorder
Speaking of ordering from the vendor, if you are still using a manual system, you are likely recreating purchase orders from word documents. While that system works, it does lead to more potential errors including entering the wrong item number, describing item specifications incorrectly, or miscalculating currency exchanges. Proper inventory management would also allow you to copy recent purchase orders and select specific item numbers and specs from a dropdown so order errors can become a problem of the past.