Inventory Maintenance Software: Efficient Solutions, Benefits, And Types

What Software Systems Are Used To Maintain Inventory?

There are different types of inventory software systems tailored to specific business needs. Here’s a breakdown:

Cloud-Based Inventory Systems

Cloud-based systems offer real-time data syncing, allowing companies to manage their inventory remotely. This is particularly useful for businesses with multiple warehouses or retail locations.

ERP-Integrated Solutions

Enterprise Resource Planning (ERP) software often comes with integrated inventory management tools. This all-in-one solution provides better insight into inventory levels and how they relate to other parts of the business. Besides, automating ERP has helped in coordination between departments like sales, finance, and logistics.

Standalone Applications

These are software systems designed solely for inventory management. They are often used by smaller businesses that don’t require complex ERP systems. Standalone solutions are user-friendly and come with core functionalities like stock tracking, reordering alerts, and inventory reports.

One standout in the market is Ekklavya Solutions, a leader in the field for over 30 years. Our Assets, Inventory & Maintenance Solution (eAIMS) offers a comprehensive platform for managing everything from asset procurement to stock management.

Features:

Budget and fund allotment & utilization tracking

Rate contracts and scrap management

Employee and vendor portals

Dynamic dashboards with query analyzers and standard reports

Digital signing of purchase orders and related documents

Benefits Of Inventory Maintenance Software

Inventory maintenance software brings a lot of benefits to a company. Here are the top 7 benefits:

1.Prevents Stockouts and Overstocking- Automated alerts help you avoid running out of stock or over-ordering.

2.Facilitates Demand Forecasting- Studies indicate that retail businesses lose around $1 Trillion, i.e. 4% of sales annually, due to stockouts. Inventory software helps with accurate demand forecasting, reducing lost sales.

3.Enhances Accuracy: Reduces human error by automating stock counts and updates.

4.Saves Time: Automates routine tasks like reordering, saving time for other business priorities.

5.Boosts Efficiency: Streamlines the entire inventory process, from procurement to tracking.

6.Increases Cash Flow: Keeps deadstock low and restocks fast-moving items, improving cash flow.

7.Reduces Costs: Minimizes costs related to storage, stockouts, and overstock by optimizing stock levels.

How Is Maintenance Inventory Software Different From Inventory Management Software?

As discussed in the beginning, an automated ERP system is different from the traditional ERP system.

Thus, maintenance inventory software focuses on managing maintenance parts and equipment. On the other hand, general inventory management software manages the whole inventory stock.

What Are The Main Types Of Inventory Maintenance?

The four types of inventory that businesses need to manage are:

Raw Materials

MRO (Maintenance, Repair and Operations)

Work-In-Progress

Finished Goods

Best Practices For Managing Different Inventory Types Using Software

Invest in fast-moving inventory items

Fast-moving inventory is the one that is quickly sold in a short period. For example - fruits and eggs. Though these high-moving goods account for less percentage of overall inventory, they bring high revenue. Hence, always invest money in them as they are suitable for maintaining liquidity.

Limit Slow-Moving Goods

If you have slow-moving goods, then try to avoid or limit their purchase. They take time to sell out and block your money. Always invest your money in the inventory that sells out.

Automate Reordering

Set automated reorder points in your inventory management software. It will alarm you on stockouts and ensure you never run out of critical items.

Use Historical Data for Forecasting

Gartner's research indicates that 45% of organizations faced inventory-related challenges due to fluctuating demand. This study highlights how forecasting and research are essential. A best practice would be leveraging historical data from your inventory software to forecast demand and prevent stockouts or overstocks.

Implement Barcode Scanning

Using barcode scanning technology alongside your inventory software streamlines the process of adding and removing stock, ensuring data accuracy.

How Is Benchmarking Used To Set Inventory Standards For Success?

Benchmarking is the process of comparing your business performance metrics with industry standards or best practices. When it comes to inventory management, benchmarking is used to set performance standards that help you track how well you manage stock, resources, and operations. Knowing this information can help you -

Outweigh your competitors

Make smarter decisions on stock levels

Manage stock storage as per benchmark standards.

To start benchmarking in inventory management, you need to set up key performance indicators (KPIs) within your inventory software. These include:

Order accuracy: How often is the correct amount of stock delivered on time?

Inventory turnover: How quickly does stock sell and get replaced?

Stockout frequency: How often do you run out of stock?

Once you have these criteria in place, the software can track them regularly.

Benefits Of Benchmarking

Using benchmarking, businesses can make well-informed decisions, improve efficiency, and set clear, measurable goals. It’s a practical way to track performance and stay competitive in your industry.

1. Identifies Inefficiencies

One major benefit of benchmarking is it shows where you're falling behind. According to a survey by APQC, organizations that actively benchmark achieve 50% faster improvements in performance compared to those that do not.

2. Helps in Setting Realistic Targets

Benchmarking also helps you set realistic goals. Instead of guessing, you can base your targets on what’s achievable in your industry. For instance, if top companies in your sector maintain 85% order accuracy, you can aim for the same rather than set an unrealistic 100%.

3. Leads to Innovation and Continuous Improvement

Organizations using benchmarking are more likely to foster a culture of continuous improvement and innovation. This is because benchmarking aims for excellence, resulting in innovation, improvement and sustainability.

4. Improve Decision-Making

Benchmarking gives you real data to work with. So you're not just guessing what to improve. You can refine your inventory strategies to enhance your market position.

5. Stay Competitive

Benchmarking keeps you in the loop about what the best businesses are doing. It highlights your competitors' strengths and weaknesses so that you can keep up with them or even outdo them.

In short, benchmarking is like having a map—it tells you where you are and where you need to go. It helps you make better choices, save time, and keep up with the best in your industry.

Wrapping Up

Irrespective of your business type, size or complexity, you must implement reliable inventory maintenance software.

If you want something similar, invest in our eAIMS (Assets, Inventory Mantainence Software). Fill out the form on our website to request a FREE consultation call today!