Over the years, many business tools have been introduced in the market. Inventory Management System (IMS) is one of the most useful tools, especially for small and medium-sized businesses. You might be thinking about using IMS or already have it, but find it difficult to operate. If that is the case, this guide is for you. We shall discuss how you can use IMS to track your inventory.
Tracking Inventory Through IMS
IMS is a quite powerful and effective business tool. It saves your time and energy from using files and spreadsheets. With the help of IMS, you can easily keep year-long records without messing up. Let’s check how you can track your inventory with the help of IMS:
- Multiple Product IDs
Inventory management systems allow you to assign a unique identification number (SKU) to each item. These identification numbers include the product’s details and description. It also lets you assign an alternative ID to your products to avoid any mix-up.
Identification numbers make it easier to keep records and track each item in your inventory. These IDs will make your business processes less complicated. Assigning an ID makes it easier to manage the following tasks:
- Sorting information
- Product search
- Issuing purchase order
- Issuing sales order
- Serial Number Tracking
The serial or Lot number of each product is necessary for the following reasons:
- Quality control
- Federal regulations
- Advanced product identification and tracking
Inventory management systems track the serial/ lot number of each product from receiving to selling. Even if an item is sold, you can use IMS to check any product’s record history.
- Location of Products
This tracking feature is especially useful for wholesalers with more than one warehouse. Along with the SKU number, you can put each product’s location in detail. Now whenever you get an order, you will be able to track your product easily. IMS will instantly inform you about that product’s inventory and location.
If you have one inventory, you can still use different locations within it. This will help keep your products more organized and easy-to-find.
- Quantity Levels for Products
Inventory management systems send us notification whenever a product reaches the reorder point. You can set a minimum limit for an item, and the inventory management system will track its quantity with each sale.
Let me explain it with an example. Suppose you have product A, and you set a minimum limit of 100 for it. IMS will keep deducting the product quantity with each sale. Once the product reaches its reorder point (100 items), you will get a notification.
Tracking the quantity levels for your products can make your business a lot better. That is because you will never run out of stock.
- Shipping Carrier’s System
An inventory management system enables you to integrate with shipping providers to track information. When you work with top shipping providers, then you can assimilate the shipping information with that company.
Your IMS will automatically synchronize the information, and you will be notified whenever a shipment reaches its destination.
- Business Reports
Another great way of tracking your inventory’s progress is through business reports. Inventory management systems generate business reports with the help of available data in the system. There can be many kinds of business reports in an IMS.
The preset or default business reports are called Standard Reports, and all other reports are called Custom Reports. You can modify the standard report or create a new one depending on your business needs. Businesses mostly use the following reports:
- Serial number reports (with expiration details)
- Valuation reports
- Sales and demand reports
- Location reports
- Inventory count sheets
We hope that the above information can help you inventory tracking through IMS. We also recommend getting an advanced IMS that can enable you to track your stock efficiently.