How does an inventory system or ERP system help retail businesses in stock taking

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As technology is evolving, FMCG businesses and other B2C companies are evolving. Technology has a great influence on businesses especially those who work on FMCG and B2C models. ERP and IMS are great examples of the latest technology in these models. They are advanced, and powerful, and allow the company to manage the inventory system more efficiently without any human error.

What is an ERP System?

An ERP system is a software suite created to streamline and manage large-scale businesses. It automates tasks in all parts of a company, from operation and accounting to human resources and material storage. ERP systems are used by all types of companies, both large and small; they manage every part of the company, making these businesses more productive and efficient. An ERP system operates on cloud computing technology, so it’s accessible anywhere there’s an Internet connection. It can be used by different personnel within the company to manage their own areas of the business.

ERP systems have existed for decades because they are so powerful when it comes to managing the interplay of people and data. Thanks to their flexibility and ease of adaptability, ERP systems now excel in most environments, including large, global enterprises. Basically, ERP systems handle everything involved in a business transaction: from order-taking through manufacturing, distribution, and support.

What is Inventory Management System?

An inventory management system (IMS) is the software that lets you know if the products in your store are out of stock and where they are. The IMS connects directly to your store’s point-of-sale (POS) system. By tracking inventory, you can make sure that your product lines are available and replenished on time.

The IMS works with your POS to collect data about each transaction and make sure that products are in stock before they are sold. It also helps you manage inventory levels by alerting you when products run low, so you can restock them quickly.

Why do Businesses use IMS Systems?

Many businesses especially FMCG and B2C companies use IMS systems. IMS helps the business to manage, monitor, and update the inventory in real-time and with better efficiency than manual register formats.

Especially super stores and departmental stores which transact hundreds of thousands of products in one day, it’s not possible for them to keep the track of inventory with manual labor, or if they do, it will make a large % of human error.

Not just that, IMS offers a cost-saving model. Instead of hiring employees and paying them salaries with additional employee benefits, purchasing an IMS system is cost effective model. It’s aone time purchase, but doesn’t require monthly salary and any pother kind of rest like human need.

Inventory Management System vs Enterprise Resource Planning System

Inventory Management System and Enterprise Resource Planning System are two of the most important systems in the business world. The ERP system is used to manage all of the company’s resources, such as employees, materials and products. The ERP system is used by companies to track their inventory, which helps them to manage their inventory more efficiently.

Inventory management is an important part of business operations because it helps companies keep track of their inventory levels so that they can make sure that they have enough product on hand when they need it. If you don’t have enough product on hand, then you will run out of stock and may not be able to fulfill customer orders quickly enough or at all.

The most distinct difference between the ERP and IMS is that, ERP manages the whole business inlcudingg IMS and every other operation of the company, while IMS only handles the incoming and outgoing products in a business.

How does an inventory system or ERP system help retail businesses in stock taking?

ERP and IMS, both are very efficient way to store and process the inventories of a business including both offline and online stocks. Below we’ve written some of the most highlighted benefits on how IMS and ERP helps the business in stock taking:

Reduces the Cost

The very first benefit of using IMS and ERP in the stock management is the reduced cost. How? Because, in regular stock management, a business needs to hire employees and and pay them monthhlysalaries. Not just salaries, in Singapore, a company must have to pay their employees other benefits like paid holidays, incentives, and other misc. Expenses.

However, in an IMS system, everything is automated. It doesn’t requires any type of salary and can do the job without break non-stop. The starting purchasing cost of the IMS is pretty high, but in long-term it’s way cheaper than hiring an employee.

100% Effeciancy

Unlike humans and employees, the IMS system doesn’t require anykind of rest or breaks. It can work 24 hours a day 7 days a week and 365 days a year without any decrease in the efficiency and the quality.

Unlike humans, who need a break, holidays, and entertainment, tools, and AI doesn’t require these things. It’s a program that is programmed to provide 100% efficiency without any breaks.

No Human Error

No matter how perfect and expert employees you hire for your inventory management system, humans make mistakes and it’s possible to expect from a human that they can offer 100% efficient jobs. It’s impossible.

However, in IMS and ERP, they don’t have any room for error. Or you can say, they are 100% perfect. When they do their job, they do it with 0% error and bugs. However, for that scenario, the progaram must be free from bugs and errors in the code. That’s why you should invest in a good and stable quality solution.

Speeds up the Work

If you have been using an inventory management system for your business, then you will notice that it has helped to speed up the work. It is because now, you do not have to go through every piece of equipment and make sure that they are available to you. The inventory management system already knows what is available to you and what is not, so it can be used in determining the right amount of material required for production.

Once a normal business owner has decided on how much material should be produced or ordered for production, then he or she needs to start ordering from suppliers. This can only be done if they have enough information to make this decision.

Is Inventory Management System Completely Automated?

No, in case you’re thinking that you’ll buy software and it’ll start doing the job like humans. It’s not, it’s not like sending a message on your phone.

In starting, you do need a programmer or an expert who can initialize and install the IMS system in your inventory, integrate it with your ERP and maintain the working of your IMS. However, it’s usually one-time work and you can hire any expert on a contract or freelance basis for this task.

The ERP follows the same concept, you might need an expert to install the ERP and integrate the business with your all-new ERP system. However, just make sure that the expert you hire is qualified enough. Read more