Why is Inventory Management System Important for Jewellery Business?
Having an eye on the inventory management system is essential for any business. You have to keep checking your product stocks to ensure that the inventory is kept optimal. It includes the data of how much you have sold a particular item or a set of items and how much of the same unit you have to refill to meet the current demand.
Earlier, this task was done in pen and paper, but that is way too complicated and time taking. Losing data or human errors are very much usual in that process.
For small businesses, using excel was an option, but once you have hundreds and thousands of products and multiple selling channels, it gets more and more complicated with time.
What is Inventory Management System?
The inventory management system is a crucial business process where the business can track every product movement. It’s a cyclic order that starts when a product enters the store until its sale and restock. This means demand forecasting, product ordering, the supply of the product, warehouse calculations, and customer fulfilment solutions comes under the inventory management system.
What mistakes can be made without the Inventory Module?
There are a bunch of examples, which businesses usually make without the presence of an Inventory module. Some of those are mentioned below:
1. Lack of control over product catalogue :
When offering a hundred different products, you must categorize them. It helps you find a particular product easily. You can check our product JewelFlow which comes with the inventory module as well as digital cataloguing feature.
2. No track on supply chain :
Without having a proper record, you can’t refill the products and fail to meet the demand. This can break your business apart.
3. Wrong measurement of Total Cost of Ownership (TCO) :
Without proper inventory management, you buy products at the cheapest cost from the suppliers, but then comes the additional charges. With the tool, you can measure the purchase price, supply time, minimum order quantity, service and reliability of the supplier, payment lead time, uncertainty of your sales forecast, the life span of your products, and more.
4. A human can make mistakes:
We humans can make mistakes, and that is very usual. Sometimes we miss out on things; sometimes, we forget to place an order for refilling, sometimes there are missing items. But having an effective inventory management system decreases the chances of human errors, and you can track everything live in simple steps. Learn more about this unique feature of JewelFlow here.
5. Overselling a product twice:
When you control stock details manually and have both online and offline presence, it becomes challenging. You may have only one piece of a particular item and receive an order for that item from both online and in-store. With the right inventory management system, this will never take place.
Why Do You Need an Inventory Management System?
1. It improves the accuracy of inventory and order tracking:
It helps you understand precisely how much stock you need & at what time. Also, helps to prevent product shortage and allows you to keep just enough inventory without having too much in the warehouse/store.
2. Reduce the storage & waste cost
Usually, most inventory management software comes with primary economic order quantity (EOQ) calculations. EOQ helps you determine the most cost-efficient method for ordering new items by weighing the costs of storing versus the cost of ordering your products.
3. Maximize the sales
While you are keeping only the products required in your store, it increases the chances of getting out of stock as well; this increases the likelihood of losing sales. Having a sound inventory management system means you will get alerted on a low stock to re-order them just on time.
4. Forecast the market trend and demand
While having a track of each product stock, you can quickly determine the market trend based on a sales volume of a particular product or a set of products. This will keep you connected to your audience as well as keep you ahead in the competition.
5. It helps in improving the productivity
With software and the bar code scanning feature, you don’t have to make an entry for every time an item gets sold. This decreases the processing time as well as possible human errors. This saves much time for your employees so that they can focus more on other productive areas.
6. Builds up the loyal customer base
An inventory management system helps you build a pathway to creating a loyal and repeat customer base. Once you fulfil the customer demand within a short time, they can easily connect with your products and services. It doesn’t end here; they become your organic brand ambassadors and recommend your store to others.
7. Balance your multiple channel sales
You might have a physical store and an online store or branded app selling simultaneously. Having an inventory module saves you from overselling. In JewelFlow, there is an additional feature that enables you to see each product’s livestock count. It is a continuous process that synchronizes both your online and offline selling activity to have the least chance of overselling.
3 things you shall check before choosing your Inventory Management System in 2021.
Before starting off with any Inventory management system in the market, always ask yourself 3 questions.
1. Why are you looking for it?
The primary purpose of having inventory management is, it is going to make your business data-driven and structured. It will help you predict, analyze, stock, sell and grow.
2. Whom shall you choose?
When you are opting for a service, it becomes a part of your business. Always check if the software has reliability, who are their existing clients, have they prepared the inventory management system for your industry earlier, how much they know about your industry, and the other benefits and services they will provide you?
If you are thinking of all the above questions, Triologic is your answer. With over 10 years of thumping experience in the Jewellery industry and serving more than 300 global clients, we provide inventory management 2.0 specially crafted for the Jewellery businesses.
3. What insights you can get using inventory management?
An efficient Inventory management system helps you organize your business so that you can focus on your productivity. It shall always enable you to keep an eye on the optimal stock so that you never get over-stocked or under-stocked. Also, it helps you play with the numbers. With good inventory management, you can control your stock amount in different categories, and it will also give you market trend insights.
Inventory management keeps you ahead of the competition and empowers you to keep a tight hold on market share. We recommend JewelFlow as a 360° solution for the jewellers. Follow us to know more about the inventory related problems and its solutions.