Managing inventory is a complex task with numerous moving parts. Manual handling or using disconnected legacy systems can easily lead to errors and financial losses. Here are some of the significant challenges: 

• Inaccurate inventory planning: Determining the right stock for various product types can take time and effort. Incorrect calculations can lead to overstocking or stockouts, which can have severe financial implications. 
• Disparate data: A disjointed data structure across different systems in the supply chain can lead to mistakes and ill-informed decisions. This lack of data integration can result in poor planning and understanding of business operations. 
• Incorrect purchase time or quantity: Replenishment involves accurately predicting the required number of items and the delivery time. Supply disruptions can lead to overstocking or stockouts. 
• Inaccurate inventory counts: Manual inventory counts can be time-consuming and prone to errors. This lack of visibility can result in lost items or overselling. 
• Disorganised warehouse: Poor inventory allocation, poorly labelled areas, and incorrect storage conditions contribute to time wastage, lost or damaged goods, and possible theft.

These challenges can be effectively addressed and optimised with the right technology. So, let’s explore how an inventory management system can help. 

Inventory control is the cornerstone of inventory management, with tracking and reordering being the most crucial processes. 

• Tracking inventory in real-time can significantly save time. The IMS keeps records of the exact number of units of all items, their location, and their status (on order, in transit, in stock, etc.). This real-time tracking feature can help you avoid overstocking or stockouts, ensuring you always have the right amount of stock. Inventory levels are automatically updated in real-time as purchased or returned items arrive, and sales occur, providing you with accurate and up-to-date inventory information. 
• Stock counts and cycle counts are essential procedures in any supply chain. Using barcode and RFID scanners that automatically update inventory levels in the system can improve these processes’ efficiency and accuracy. 

• Automating reordering is a highly valued feature as it detects low stock levels and automatically creates and sends purchase orders for the required items. 

Estimating the optimal amount of inventory to purchase is challenging. It needs to match production/storage/sales capacity on one hand and volatile customer demand on the other. 

• Demand forecasting is crucial for accurately predicting customer demand. Technology aids in analysing historic and current trends and providing recommendations on optimal stock amounts. 
• Inventory optimisation analyses product popularity and facilitates ordering the right quantities and items. 

• Managing suppliers involves analysing their performance to ensure uninterrupted and reliable delivery of goods. 
• A customer database is crucial for automating document filling and analysing purchase patterns for demand forecasting. 

Monitoring performance is crucial for understanding your business and identifying areas for optimisation. The IMS can help create multiple inventory-related reports showing your business performance. 

With the key features in mind, let’s discuss the possible integrations of inventory management systems.