Most businesses consider their inventory to be their most valuable asset - both on the balance sheet and in terms of its role in keeping the business going. Managing inventory well is a complex task, but it is also one that can help your business be more profitable and deliver more value to your customers. Here are five signs that you may benefit from a cloud-based Inventory management system.

There are frequent stockouts

Running out of stock is a big no-no for many small businesses. When you don't have something, you can't sell it, and that means a loss of revenue and possibly a damaged brand reputation. When this happens, your business may benefit from using online inventory management to automatically track inventory levels and place orders when they fall dangerously low. The same applies if you have unnecessarily high stock levels in your warehouse. Poor stock control undermines the operations and logistics of your business.

Managing customer orders is a drag

We all know that when you acquire a customer, it is equally important to keep them happy and shop with your company. This becomes increasingly difficult as your business grows. Automatic email updates from your inventory management system can assist in this process. An order can be updated when it has been processed, shipped, and arrived at its destination eliminating the need for manual updates.

Manual counting is too prevalent

Counting by hand can sometimes provide a telling, albeit time-consuming, an indication of stock levels. Nevertheless, there is a trap that can be very easy to fall into if too many manual stocktakes are conducted. The process often wastes time and is prone to human error.

Inventory management software can track your inventory stock in real-time, from the moment you place the order with your supplier to the moment it reaches the customer. Having accurate stock levels reduces the need to check your stock levels frequently.

Clipboards and spreadsheets cannot be scaled

Often, new businesses find that a spreadsheet is sufficient for their requirements and fail to see the benefits of investing in an online inventory management system. While this may be true in the early stages of a business, spreadsheets are not scalable and sustainable. Manual inventory management is feasible if the business has five products and a handful of local customers. What happens when the business expands to twenty-five products available in New Zealand and Australia?

In the future, what worked before may not always work. When you own a small business, a key indicator of success is your ability to identify weaknesses in logistics and resolve problems before they occur. If your business begins to expand, this in itself is a key sign that you should examine the suitability of your current inventory. Consider upgrading to a more comprehensive online inventory management system.

A dashboard is essential

Many inventory management programs offer a fully customizable, visual dashboard. A dashboard can be a game-changer for your business, providing you with insights at a glance. You can be sure to receive up-to-date information since they automatically update.

Managing a small business is becoming increasingly complex in today's increasingly complex world. How we track, store, and manage our data is becoming increasingly important. Investing in online inventory management software will ensure that the logistical side of your business is prepared for the future. If you recognize any of these signs in your own business, it may be time to upgrade your inventory management software!

Author's Bio: 

Arnaldo is an American writer for various digital news publications. After being in the eCommerce industry for more than 15 years, Arnaldo has a good understanding of what it takes to make an eCommerce business successful. He also likes to cover newsworthy events related to business management software, customer relationship management (CRM), and Quoting software