Inventory Software Steps That Will Maximize Your Inventory Investment While Reducing Your Expenses

You might not think that your business needs to use inventory software, and maybe this is true if you are in the very beginning stages of running a business.

However, once you were truly up and running you would be doing yourself a terrible disservice if you were not putting in place a good inventory management system that would allow you to maximize the way you were doing things.

When a business first gets started or if it is still quite small the business is going to go through a lot of cash. This is usually the make or break time for a lot of businesses.

If they are unable to use cash the right way then they are not going to survive very long. It is getting tougher and tougher to stay in business if one is not able to have cash on hand when they need it.

Seeing as how you are going to need cash on hand all the time you cannot afford to have cash tied up at all. This is going to happen no matter what you do, but there are some areas where you can prevent such problems.

Inventory would be one of them. Using the right inventory management system is just the first step. Making sure you have the right software in place to run it efficiently is the next step.

Your goal is going to be carrying only as much inventory as needed based on customer demand. You might decide to carry a little bit extra for the purpose of bigger discounts from suppliers or to hedge against fluctuations in customer demand.

In any case the goal is going to be finding that sweet spot. You do not want too much, but you also will not want too little.

When things are done thins way it means you will not have to worry about having cash tied up in inventory. Now why is this important. You want to be able to use this money in other areas of the business.

This is really important for any business that is just getting started and having cash on hand will allow you to be prepared for unexpected things.

Inventory software also allows a business to reduce negative cash flow, because it is going to allow a business to keep down inventories.

At least it will allow a business to keep them right where they need to be. Excess inventories can mean doom for certain business, especially if they are not able to eventually move it.

What inventory software is really all about will surprise you because many businesses fail to understand how logistics software can really benefit their organization long term.

For instance, say you want to set up an inventory management system that is not going to consume a lot of your time right? Well if this is the case you cannot have a system that is overly dependent on other people.

You want to know that any and all information you need to ensure your system is effective can be quickly obtained by you.

Even if you have to rely on others you still want to know what information they will need in order to ensure they bring you back the information you need to input into the software.

Inventory software will help you along in this regard. It is designed to help you answer important questions and make needed changes.

It is made so that you are able to control your inventory the way it needs to be so you keep your costs down. In such a competitive business environment you need this.

The investment you might have to make in logistics software is nothing compared to the long term value you will get by using this program daily.

TL Logistics Management Software is Essential to Cutting Shipping Costs

When companies grow large enough, they typically purchase their own shipping fleet and have a logistics department that manages their shipping process from a variety of vantage points. But for small to midsize companies that don’t have a shipping fleet or an in-house logistics team, carrying out and managing their shipping process means outsourcing their transportation logistics or trying to choose the right shipping options on their own. In most cases, these companies trust a third party logistics (3PL) provider to provide the best TL shipping solutions for their unique distribution needs. However, to save money and have more control over the shipping process, more and more companies are turning to truckload logistics software-also referred to as TL logistics management software. In addition to allowing small to midsize companies to become their own logistics provider, freight logistics software helps them save money with respect to the following areas of the shipping process: freight management, transportation execution and freight payment and audit.

Freight Management

Freight management amounts to managing each means freight distribution, including but not limited to: small parcel, less than truckload (LTL), full truckload (FTL), rail and sea. While large companies employ logistics professionals or construct internal freight councils, small companies typically either outsource freight management or defer to purchasing personnel or shipping or warehouse managers. By implementing TL logistics management software, companies realize more shipping options than they do from outsourcing to a 3PL provider. Because 3PL providers only use carriers that they can make the most money with, your shipping options with 3PL providers are limited to what makes the best sense for 3PL providers and not necessarily for your company.

Transportation Execution

Traditionally, transportation systems are designed for tendering outbound shipments, meaning that they aren’t designed for managing inbound and third party shipments. In addition, parcel carriers have compliance requirements that cause shippers to use a separate system for parcel processing, leading to higher freight costs. Ultimately, shippers have a difficult time keeping their freight from being tendered outside of their original pricing agreements and end up overpaying for freight transportation. To remedy this situation, TL logistics management software allows companies to enforce internal and external compliance throughout the shipping process with regard to the carrier pricing agreement.

Freight Payment and Audit

TL logistics management software allows you to combine your freight payment and pre-audit data, which gives you limitless reporting options concerning your freight spend. With the combined information uploaded to the software application’s dashboard to give you almost real time visibility of your freight spend, you can to monitor freight KPI’s on a daily basis to further control shipping costs as KPI’s change. The freight payment and auditing capabilities of truckload logistics software also allow you to receive more of your freight bills through EDI, which serves to lower your pre-audit costs.

Inventory Software Will Allow You To Maximize Costumer Service – Follow These Steps To For Success

The last thing any business wants to do is take on any expensive they feel they are not going to need. This is one of the primary reasons why a lot of business, especially those that are just starting or are smaller, will decide to go without an effective inventory management system that is implemented by means of inventory software.

These businesses will try to do things the hard way. The hard way equals a business having to invest more time, which of course is going to mean more money.

In order to convince you of how beneficial it would be for you business to have inventory software, we need to discuss the overall value it is going to provide you with moving forward.

The one aspect we can focus on is the lifeblood of your business, and that is going to be making sure your customers are satisfied. Now you might have a good product or products.

You might have friendly staff who answer the problems of customers. You might run a pretty efficient business. However, without inventory software you are not doing all you can to make sure you are maximizing customer service.

Why do you think this is? Well, without the right tools at your disposal to make inventory management more efficient you are going to run into problems such as inaccurate customer forecasts.

This means you are going to underestimate or overestimate the amount of software you need. How much do you believe this is going to cost you in the long run? Then you have issues such as various changes that can happen to original customer orders.

When this happens it can throw everything into a tail spin. Let’s not forget the overall lack of account management your business might have.

All of these things combined make for poor customer service performance in regards to on time delivery, not suppliers and not purchasing. What do you believe is going to happen because of this?

You are likely going to end up carrying a lot of excess inventory or not enough. This is going to lead to inventory write offs.

You are going to end up having higher product costs, which is going to mean lower profit margins for you. Inventory software is going to enable you to solve all of these problems without hassle.

There are many reasons why inventory software will help you make more profits at the end of the day. For instance, right now you probably have a good idea of how many sales you can expect to get for a given product at a given time of the year.

You might have taken the time to put this information together and it has worked out well for you. However, without inventory software there is a chance you are opening yourself up to a huge forecast error.

You want the individual product sales forecast for your business to be as accurate as possible. The more accurate the product sales forecasting is the smaller the forecast error will be.

This means you are not going to need that much inventory to make sure that you are able to maintain a specific level of costumer service. There are other benefits as well.

Your most likely use machines in your business if you carry a lot of inventory. Not carrying excess inventory means you will not have to worry about over using machines you might have when it comes to producing products.

You will not build products before they are needed, and as a result you are not going to have to commit capacity of your machines too early.

Inventory software which is another term for logistics software, is a tool no business can afford to be without if they want to run a sound inventory management program.