Small and large brands alike are increasingly relying on automated inventory management to help meet customer needs. Inventory management systems are nothing new, but the falling cost of entry means more accessibility than ever. There are several benefits to these systems that even the most minor e-commerce operations should know.
Reduced Risk of Human Error
Automated inventory management systems, by their very definition, reduce the risk of human error, which, even in small doses, can create irreparable damage to customer relations. If you’re in an exceptionally crowded marketplace where customers have many options, it’s even more critical to reduce the odds of a slip-up. Ultimately, leaning on automation to streamline essential tasks saves you the time, money, and headaches in fixing a human error. That’s worth the cost of admission alone.
Better Use of Your Team’s Time and Skills
Computers are far more accurate than people. They simply work faster. Your stock is updated and replenished — or not — in real-time without the need for a human being to count a single thing. What’s more, the system will offer you options for replenishment right when you’re notified that you’re running low on a particular item. This can cut your turnaround time significantly and reduce the risk of selling out of items in high demand, making it easier and faster for you to get your customers the goods they want and need.
The bottom line is that automation saves your team time. Your employees will no longer have to spend time on mind-numbing tasks instead of engaging and value-adding tasks. This makes better use of your payroll; it also makes it easier to attract and retain top talent.
Synchronized Inventory
When given the option to purchase from one retailer who has stock or another who doesn’t, the choice is clear. And worse, not being unable to fulfill an already placed order because your inventory tracking is out of sync (an increasingly common hiccup with the rise of omnichannel selling) is a sure way to start losing customers. With the right technology, every platform you sell on will be automatically updated, saving you money and helping to retain customers.
Maintaining Proper Stock Levels
You don’t have the money to tie up your stock in goods you don’t need. But, unfortunately, many e-commerce retailers are doing precisely this. The analytics and reports provided by automated inventory management can help you to maintain proper stock levels at all times because having too much stock can be as much of a problem as not having enough.
There is also increased visibility into your stock. Rather than a rough, possibly accurate estimate of what you have on hand at all times, automated inventory management makes sure you know exactly what you have on hand at any given moment.
Easier Vendor Management
Vendor management can be one of your biggest headaches in the world of e-commerce, but automated inventory management means that it doesn’t have to be. Inventory management systems don’t just manage your inventory. They also help you to manage your vendors in a much easier fashion. Balance sheets are generated, and the onboarding of new vendors becomes far easier.
You might think that automated inventory management is a considerable and unnecessary expense, but it’s become both more affordable and necessary in recent years. The question is less about whether or not you can afford to adopt one but whether you can afford not to. Your competitors may already be using automated inventory management and capitalizing on all the benefits outlined above. The good news is, you can join in. Contact Taylored Services today to learn how we can help.
James Pell is a freelance logistics journalist.
References: