Inventory Information System

Chahil Bapna
B012
45401190121
INVENTORY INFORMATION SYSTEM

An inventory information system is a tool that allows us to track goods across our
business’s supply chain. It optimizes the entire spectrum spanning from order
placement with our vendor to order delivery to our customer, mapping the complete
journey of a product. The transparency provided by this software has a big impact on
the bottom line of a business. Through accurate tracking of goods, businesses can
minimize waste, analyse trends, and make better investment decisions. An inventory
information system is the combination of inventory management software and
inventory management processes & procedures to connect, track and manage the
flow of goods, activities, information and resources across a business.
Inventory information software features

The inventory information software should include all these features: -
Inventory optimization: Maintain just the right amount of inventory for each
product, without over- or under-stocking any item. It’s especially useful if you deal in
products that experience a seasonal rise and fall in demand.
Stock notifications: Receive alerts and notifications when there’s over- or

under-stocking beyond a defined threshold. This helps you to place orders or offer
promotional discounts to clear out extra stock.
Barcode scanning: Easily identify and track your products; inventory

management software integrates with barcode scanners for instant product
identification and labelling.
Stock returns handling: Manage returns more effectively by reducing time-to-

return through automation of the entire process.
Material grouping: Group inventory into predefined categories and ensure

you’re always updated about quantities of components and specifications that make
up your product stock, and manage their reordering schedules as required.
Purchase order records: Create a single view of purchase order records. You
can easily identify which products are in demand, both perpetually and seasonally,
and prepare to meet your customers’ needs.
Report generation: View sales history in the form of a list of your most popular
products. This feature also enables you to manage items in your inventory that have
not reached the sales levels you expected, for example, by offering discounts on
them.
Multilocation management: Manage multiple warehouses and points-of-sale

(POS). All locations can be integrated within a single inventory management system.
Some additional features that an inventory information system can also include: -
Demand forecasting: Through this feature, you can draw on past data to
identify future demand. It isn’t necessarily offered by all platforms, so if forecasting is
important to you, be sure to ask the vendors on your shortlist about this capability.
RFID-based in-transit tracking: This feature is useful if your supplies come

from a third-party and you dispatch goods for delivery. This feature leverages RFID
technology to provide you with real-time tracking of your inventory in transit.
Warehouse management: This feature is useful if you need to optimize your

warehouse stock and maintain an accurate log of each product’s location. It’ll give
you a single view of where all of your products are stored.
Benefits of Inventory Information System
Simplified inventory management –
Perhaps the biggest benefit to using inventory information software is that it makes
the process of managing our inventory a whole lot easier, saving our time, money
and quite frankly, sanity. With supply and demand changing throughout the year and
our stock levels continuously fluctuating, inventory information software helps to
avoid the risk of human error by automating our key business processes.
Avoidance of stock-outs and excess stock -
When it comes to managing our inventory, trying to maintain the right balance is a
challenging task. After all, too little stock can lead to a stock-out, unhappy customers
and potential loss of sales. Having excess stock, however, can take up valuable
warehouse space and incur unnecessary charges. Either way we look at it, it comes
at a cost to our business. Fortunately, with stock control inventory information
software we can track low stock levels and identify the re-order points for each
product, in turn avoiding the occurrence of stock-outs. More specifically, this type of
software will be able to calculate these re-order points - also known as par levels -
through the use of a reorder point formula.
Reduced risk of overselling-
Overselling is a major challenge for online sellers, often resulting in loss of control,
disappointed customers and in some instances, being suspended from marketplaces
such as Amazon and eBay. That said, it is a selling challenge that is preventable.
How?
By synchronizing our orders and inventory across each of our online marketplaces
and eCommerce platforms, ensuring that stock levels are adjusted each time we
make a sale. Now while this is often easier said than done, we can see how home
and garden retailer, Rinkit, overcame this exact problem and went on to expand their
business worldwide.
Greater cost-savings-
By streamlining our inventory information processes, we not only stand to eliminate

the inventory costs associated with human error, but we can also benefit
from further cost-savings.
Improved business negotiations-
By using inventory information software with batch tracking capabilities, we will have
far better product traceability and subsequently be able to access valuable
information allowing for potential negotiations with suppliers.
The ability to make more profitable business decisions-
Effective inventory information software can provide invaluable sales data,

allowing for more data-driven business decisions. As an example, with a more
informed understanding of supply and demand, we can go some way to forecast
sales trends, giving us a more competitive edge. With access to reporting features
and inventory metrics, many inventory management systems equip us with the tools
needed to make strategic decisions. Additionally, with the ability to work out
our inventory turnover rate, we will also be able to identify opportunities for reducing
the amount of inventory we are holding in our warehouse(s) and lowering our
inventory carrying costs.
Role of Information Technology in Inventory Management in current market is huge.
Information technology provides control and overview over the inventory and hence
helps in avoiding many bottlenecks.

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Chahil Bapna

INVENTORY INFORMATION SYSTEM

Inventory information software features

Stock notifications: Receive alerts and notifications when there’s over- or

Barcode scanning: Easily identify and track your products; inventory

Stock returns handling: Manage returns more effectively by reducing time-to-

Material grouping: Group inventory into predefined categories and ensure

Multilocation management: Manage multiple warehouses and points-of-sale

RFID-based in-transit tracking: This feature is useful if your supplies come

Warehouse management: This feature is useful if you need to optimize your

Benefits of Inventory Information System

Simplified inventory management –

Avoidance of stock-outs and excess stock -

Reduced risk of overselling-

By streamlining our inventory information processes, we not only stand to eliminate

Improved business negotiations-

The ability to make more profitable business decisions-

Effective inventory information software can provide invaluable sales data,

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