The role of entire inventory management has undergone a sea change on the back of seamless utility provided by the inventory management system software. The inventory management system software not just eliminates the bottlenecks present in the complete integration of accounts, production, and the inventory management department but it aims to enhance the efficiency of inter-connected functions as well.
The inventory management software is designed by aninventory management software company taking into account the size of the business, the number of warehouses it manages, and the different kinds of inventories it deals in. Let us take a look into the role of inventory management software in a scenario where businesses operate across continents in today’s world:
Recording receipts to exhibit the stock level in the management information system
Actually, when the inventory is received at the warehouse of the company, the inventory management department is required to make stock replenishment vouchers to document the receipt of inventories at the warehouse. The stock replenishment voucher creation takes the process of recording and reflection of receipt of inventory through the inventory management software forward.
Documenting different stages of inventory issues
Inventory issued to the production line of the company does form a significant aspect of inventory management. Whenever the stock is issued or returned, it has to be recorded under different movement types for which the inventory management software company provides a necessary option in the inventory management software adequately.
Recording the issues under different movement types is not the only issue taken care of by an inventory management software but there are also certain documentary formalities are to be done that are also recorded or given effect to by means of an inventory management software like creation production issue memo at the time of goods being sent to the production line or creation of outward gate pass at the time finished goods are given necessary clearance from the warehouse.
Another striking aspect of inventory management software is the generation of different periodical reports that provide tremendous utility to the planning or accounts department either. The planning and accounts department can use the inputs received from the inventory reports to frame forward-looking inventory management policies or make informed judgments in the wake of optimizing the company’s resources. The aspect of the creation of inventory reports is an added feature of inventory management software, something that has totally been missing in traditional inventory management and was much needed to address the emerging challenges in the overall business environment.
Providing inputs for procurement planning
The stock reports, aging analysis among other things are a few of several issues that the planning and budgeting team does require seamlessly in a real-time environment and through an easily navigable platform to streamline the overall planning and budgeting process and take forward the inventory replenishment to a next level. The review of stock level reports helps the planning team to place proper and just stock orders in a bid to achieve managerial efficiency.
Thus, the perusal of the above points clearly throws light on the evolution of the inventory management department largely driven by the installation of inventory management software made by the inventory management software company and that starts taking place when management decides to achieve a full-scale integration of their inventory management department with the other departments.