March 8, 2022Inventory
Businesses are eliminating physical paperwork from all operations and administrative functions. Inventory control management is no exception. In fact, some businesspeople would argue that this is one of the first business functions that should be digitized. Going paperless reduces business risks and improves efficiency.
What Is Inventory Control Management?
This refers to the processes and best practices companies rely on to properly track and take charge of the items in their inventories. These are some of the many types of items companies need inventory management systems for:
- Stored items, particularly seasonal items
- Rental equipment
- Manufactured items
- Items intended for sale
What Are the Types of Inventory?
The many examples of inventory available all fall into five main categories. Identifying which ones your company has can make it easier to determine whether you need multiple plans for each:
- For-sale goods or finished goods
- Work-in-progress items or unfinished goods
- Raw materials necessary for creating goods
- Safety stock held as insurance for supplier shortages
- Goods for maintenance, repairs and operations
What Are Benefits of Paperless Inventory Control Management?
The specific benefits of going paperless depend on the technology you use to manage your inventory. However, there are several benefits that hold true across most systems.
1. Centralized Dashboard
When managers need to determine what the current inventory looks like, they no longer need to search through emails, look for reports or call production line managers. Instead, one glance at the centralized dashboard provides all the inventory data necessary to make timely and informed decisions.
2. Reduced Risk of Overselling
Over the past few years, companies around the world have experienced material and labour shortages. This has increased the risk of overselling. Paperless inventory management makes it easy for management to track not just what today’s inventory looks like but what it might look like next season or next year. As new information comes in, this estimate updates automatically.
3. Reduced Risk of Spoilage
Some raw materials have limited shelf lives. Failure to utilize these items before expiration could lead to spoilage and wastage totaling thousands of dollars or more. Companies can reduce this by using inventory control management systems to ensure all necessary ingredients are available before ordering and to project sales for the completed product if it also has a limited shelf life.
4. Improved Cost-Savings
Reduced spoilage saves companies a lot of money, but inventory management contributes to the bottom line in other ways. The biggest benefit comes from automation, which allows companies to reallocate labour hours to aspects of business operations that contribute directly to the bottom line.
5. Improved Agility
Using paperless inventory management and automation tools makes it easier for companies to scale operations up or down with ease. This, in turn, significantly improves agility for the business. The ability to pivot quickly and efficiently is crucial to business survival and success in the current market.
PencilPay supports paperless inventory control management. It integrates with major inventory management systems, such as DEAR Systems and Unleashed Inventory. The software then works on the backend to determine the creditworthiness of customers seeking to access trade credit with your business. Leverage these and other benefits by starting off with a free 30-day trial.