Inventory management is one of the main tasks that should be performed by any business that is into the selling of different kinds of products. Any company that specializes in inventory management will tell you how it is a central factor in offering BOM cost reduction services to their end-users. These days computerized inventory management software systems are used for simplifying and streamlining the process of inventory management. Features like POS software, procurement support, bar codes, and accurate warehouse tracking can really make it a lot easier for the business houses to always stay well informed when it comes to their business inventory. With services like MRO data enrichment and sourcing cost savings alternatives.  However, just like anything else, the inventory management software systems come with their own range of benefits and shortcomings and you should be aware of that before you go ahead and invest in some specific software.

Here are the advantages and disadvantages of inventory management software that you should know about. 

Advantages

High efficiency in automated reordering as well as in-stock information

By using inventory management software, your employees and customers can learn within seconds if an item or product is in stock or not. Since inventory details are synced with the sales, the system always maintains a detailed track of everything that is in stock. Such efforts can effectively flag all reordering needs so that your company can offer superior services to customers. Once the inventory drops below a certain mark, the software can guide vendors to place new orders as well as track their deliveries so that your company can let the customers know when they can expect the new products to become available.          

Smooth integration with all accounting activities

Most of the inventory management platforms these days can be integrated easily with accounting software for the purpose of tracking the inflow and outflow of your financial resources. You can conveniently transfer all the inventory assets and costs between the programs easily so that you do not have to maintain extra bookkeeping expenses. Additionally, you can also have your financial statements prepared easily by sharing data between your inventory management software and bookkeeping software.

Forecasting and Planning

With the help of the inventory management software, you get to have a powerful data collection system to perform forecasting for your business and create strategic planning reports. Forecasting future product popularity trends can help you to run your business efficiently. This can not only help you to grow your business and place orders for inventory in an intelligent manner and make the most use of financial resources.

Disadvantages

System crashes

A major problem that frequently bugs users when they are dealing with inventory management software is that they have a tendency to crash down which can lead to loss of valuable data in many cases. Crashes can happen because of power outages, corrupted hard drives or other technical problems. Hence it is necessary to perform data back up on a regular basis.

Hacks and security breaches

When inventory information is maintained in software, it can be infiltrated by the hacked. Loss of financial information and bank details can be a critical problem. Hence it is essential to make use of anti-virus software and firewalls.

Fewer physical audits

Automation of your inventory management can mean no more physical inventory audits since they are time-consuming. However, physical audits are necessary to make sure that the data is reliable and that there are no instances of internal thefts or that no one is manipulating the inventory system software. Such audits can definitely help to boost the operational efficiency of your company.