Every big industry supplying products and goods to the vendors have a recorded database of their goods and products they develop & own. Big industries like Coca-Cola, Lays, and some brands like fashion brands who have more than one type of product they develop own database management system which enables them to have an idea of what product requirement they have and what product type is in demand and all the other stats.
This System is often known as the Inventory Management system. Or in other words, the Inventory Management System helps in managing goods and products moving in and out of the company. The Inventory Management system covers everything from the start like the product’s production, it warehousing, shipping, and other details. From the product’s growth to every movement its details are kept stored in the System.
For Example, we take an industry such as the Health care Industry. In this industry, it’s mostly required that an inventory management system should be created so that there is data available for all of the healthcare products and equipment.
It is fully functional and well-designed inventory management system software, which enables a user to get the up-to-date information on what is in the stock, where the stock is located, for how much it can be sold, and till when it can last.
To have knowledge of the stock it can help the company on a very large scale. This type of information can help in the ruling out the risks. Risks like overstocking, or getting out of stock, which can greatly increase the company scalability and profitability.
Benefits of Inventory Management System
It helps in accurate planning; a good inventory management system allows you to plan for the future. A close watch on stocks of all kinds of products can be made and also, it helps in managing and re-ordering them accordingly.
Managing the goods and products at different locations is quite difficult. It also gets quite difficult to manage the product and send the right product to the right customer.
Improved Sales & Productivity:
By keeping the complete track of all the stocks. A company can prevent to lose its customers & can also reduce the risk of making common errors like counting or having an in-calculated number of products. But, with the help of Inventory Management Software, you can easily meet the delivery requirements.
Well, overstocking is a very bad option for the company business and another bad option is keeping a short amount of stock. Well with Inventory Management System you can keep track of all your stock and can also re-order whenever necessary.
Well-organized Stock Operations:
Inventory Management software helps you keep track of all the products in stock. It helps one to save a lot of time and effort. Rather doing it manually by rushing to the stock location and checking each and every stock by your own is very hectic.
A company can maintain its customers by maintaining its product delivery, quality, and services. Well delivering the product on time and providing them a service they need makes them happy. Well with the amazing tracking system every customer can track their product shipment and they don’t have to face the notice of product unavailability.
Features of the Inventory Management System
This feature helps you to streamline your inventory with the help of significant inventory details like cost, availability, etc. It enables you to create alternatives for every item’s based on their attributes and can manage them systematically.
This feature allows tracking the products stored in your warehouse or store via its barcode, RFI (radio frequency identification), its lot tracking number or its serial number.
Inventory Management System provides you a list of products with their quantities that are needed for stock. This can be programmed into the management software and will alert the manager about the stock requirement or reordering point.
Raw Material Tracking:
This feature helps if there is enough raw material for launching new jobs in the production process.
This feature enables a user to have a precise evaluation of stocks in production using tools like cost layering, measurements, overheads allocation, disclosures.
This feature in your company helps you to re-order the supplies based upon your re-order points. When the stock is about to reach its minimum level, automatic purchase orders are generated so that you remain on the top of your inventory all time.
This feature allows an inventory manager to scan the product by the barcodes. This type of exchange of electronic data can also be done through Smartphones which also eliminates the needs to buy the expensive hardware.
There are many companies which have more than one warehouse as its storage locations. These warehouses can be tracked and managed to keep a check upon the total stock quantity available for the business.
Order Picking Support:
This feature enables to collect all the ordered and shipped articles in the stated quantity to satisfy the customer delivery.
This feature in the company software allows assigning and managing as many images possible for every product. Also, a default image can also be set so it will be a default product image when the product is selected.
This is a third party feature integrated such as transport analyzer, and trackers which bring transparency to the movement of goods and material.
Serial Number Tracking:
This feature helps to track and manage thousands of serial numbers, which are permanently recorded into the system from the time they are received to the time they are issued.
Shelf & Bin Tracking:
This feature helps the inventory managers to get the exact location of a particular product present in the warehouse without a delay.
Inventory alerts can be made or created and sent to you via E-Mails or SMS when the inventory levels fall below the point set by you.
This feature enables you to decide the right amount of stock in your inventory so that there is no instance where you go overstocked or out of stock.
Real-Time Stock Tracking:
This feature helps to track the real-time stock or inventory between more than one warehouse.
Types of Inventory Management Software
Manually Managed Systems:
The name itself suggests that these systems are managed where even the most complicated calculations are performed with the help of user input formulas. This type of software is good for a startup or for small scale businesses and enterprises that primarily deals with paper-based stock management. It also allows with the tracking and ordering of the restricted number of goods. Where there are calculations made manually there are always chances of error and inaccuracies in management.
Barcode Scanning System:
These are the most robust and efficient software as they follow the business enterprise to track and manage hundreds of items and extracts the data directly from the point of sale System. Once the stock reaches the warehouses it automatically gets updated, thus the managers have access to the up-to-date data about the stocks. Hence the barcode technology made it simple to track the movement of stocks or inventory from one warehouse to another and from warehouse to customer.
Radio Frequency Systems:
RFID which stands for advanced radio frequency identification has stepped up the game on an altogether new level. This system is specially built for businesses where thousands of items move in and out every day. The tech behinds the RFID can be categorized into two parts which are active and passive technology.
Developing the Inventory Management System
A warehouse management software design is a crucial part of all the retail business and manufacturing business. It’s impossible to create or develop reliable and robust software that efficiently controls and manages the inventory, ensuring that no goods are lost due to theft or getting spoilage. Factors to be taken care of when you are developing software like this are:
- Planning & Concept Building
- Requirement & Analysis
- Wire-framing & Designing
- Development & Implementation
- Deployment and Integration of Modules
The Cost to Develop an Inventory Management Software
The cost to develop retail inventory management software depends on the numbers of different types of features integrated into it. You should be having a basic knowledge of business requires you have. It’s you who need to decide that whether your business will profit from a basic introductory system or you need a fully functional inventory management system integrated with ERP software. Fully having the knowledge of your need will help you in setting up a realistic budget for your system.
Depending upon the various panels, features, technology, and functionalities, the cost of software like Inventory Management System is in the range $15000 – $30,000 if you want to develop it from scratch.
If we talk about the location wise cost, the cost of developing software like Inventory Management System in North America is around $200/h while it costs $25/h in India. The cost that we have discussed varies depending on the experience of a developer you hire.
If you are looking for a technology partner for building software like this then Endive Software is the best option for you. Hire our experienced developers helps you to build a software like Inventory Management System.