Inventory management software is essential to small manufacturing businesses because it improves inventory data visibility and planning. It’s an efficient way to reduce storage costs since it allows you to only add stock when necessary. It also boosts customer satisfaction by helping ensure timely deliveries. This is not a reserve for large companies only. Even small manufacturers require this software for better operation. In this article, we highlight eight tips for implementing inventory management software in a small manufacturing business.
8 Strategies for Your Small Manufacturing Inventory Management Software
Getting started with inventory management software for a small manufacturing business isn’t a complex process. Let’s explore eight simple steps to achieve this.
- Understand the business’s needs and challenges
Begin by identifying the current pain points in your warehouse management process. Do you notice any gaps in your current system? If so, note them down as potential areas of improvement.
You can conduct a SWOT or gap analysis to identify the above challenges with accuracy. You can also consult your inventory management staff to find out the issues they are currently facing when managing company stock.
Once the inventory audit has been completed, consider the resources available for you to implement inventory management software. Think about your budget, intended implementation timeline, and whether you’ll need new equipment to successfully launch the software. Ideally, you’ll want to find inventory software that won’t require you to purchase additional equipment.
- Choose the right software for your needs
Inventory management software comes in several different variations. Some are simple computer-based applications while others are more advanced. Advanced inventory management software comes in two broad categories. The first category runs on your computer server and is known as resident software.
The second category of inventory software is a SaaS cloud-based service that saves you from having to run physical servers on your premises. This software also saves you the trouble of manually upgrading the software every so often. A cloud-based service will store your inventory data and is easy to access at any time. Compare the prices of different cloud storage options to determine the one that’s best for you.
There are several types of inventory management software to choose from, including IoT (Internet of Things), Radio Frequency Identification (RFID), and barcode scanning. IoT is a smart inventory management software that uses sensors to track and monitor products in real time. Here’s an example of an inventory barcode scanner.
RFID helps large and small manufacturing businesses track products throughout the supply chain, starting from production to POS (Point Of Sale). A barcode scanning system uses the barcodes on each product and a scanner to track the progression of products throughout the supply chain.
As mentioned earlier, select software that’s within your budget and meets your current business needs. It should also be compatible with your current business software, including your POS, ERP, and WMS. Ensure that the software is also scalable and can keep up with your business’s growth. Finally, choose software that’s secure and will protect your information online.
- Plan how to launch the software
Set the scope, milestones, and objectives of the inventory management software implementation process. Take time to talk to your staff about the software and let them know the plan you have in place. You can then assign responsibilities to each staff member as needed and prepare to train them on how to use the software after launching.
Prepare to migrate your data from the existing inventory tracking system to the new software. Identify the resources needed to do this and any additional equipment or software that staff members may require. Be sure to have a technical assistant at hand in case you run into any issues after launching the software.
- Organize and transfer existing inventory data
Identify all the data you want to transfer to your new inventory system and put it in the relevant format. Do that by grouping items according to their various types, sizes, and frequency of use. Ensure that you label everything and indicate their various storage locations for easy access.
This is where the point we made earlier about software compatibility comes in handy. If your choice of inventory management software is compatible with the old system, data transfer will be no stress. However, if they’re not compatible or it’s your first time using such software, then you’ll have to manually enter the data.
Manual transfer may be time-consuming, but it’s an important step in implementing inventory management software in small manufacturing businesses.
- Customize and configure the software
Make the inventory software your own by adding custom features that matter to your business. Set the workflow that aligns with your operations and automate it for ease of operation. Create product catalogs or import them from an existing spreadsheet.
Choose the end-to-end fulfillment features that you’d like captured in your inventory management system next. This encompasses everything from order processing to shipping, order tracking and delivery. It also captures any returns from customers all the way back to your warehouse.
- Test out its function
Once everything is set up, it’s time to take the software for a spin. Ideally, you should do this before you go live. Use a small portion of your warehouse and inventory process as a pilot and use it to see how well the tool will work for the entire warehouse.
Look for the inventory management tool’s ease of use and accuracy while collecting your team’s feedback. You should also validate the functionality of the software solution. Basic Items such as viewing stock quantities, selecting item names, and entering quantities, prices, bill dates and invoice numbers are essential.
Analyze how well the software helps you with inventory visibility and transparency and document the feedback, results and lessons learned. You can then use this information to make any necessary adjustments to the software.
- Roll it out
It’s now time to go live. Launch your customized inventory management software officially and let all staff members know that it’s time to use it. It may be a good idea to conduct a refresher course on the objectives of the software and what you aim to achieve using it. This will help your employees see how implementing the software fits into the bigger business picture.
- Continuous assessment and optimization
The first step in the assessment process is to analyze how well the implementation of the software has worked so far. This can be done two weeks to a month after roll-out. Measure the impact of the software on the performance of your inventory system and warehouse operations.
Gather customer and supplier feedback and find out their experience with the new software. Find out whether it has boosted their experience and whether they prefer the new system to the old one.
Finally, compare the results you gathered to the objectives and goals you had set in the beginning. Are you getting closer to achieving them? Is the new software bringing you one step closer to achieving your overall business goals? The answers to these questions will help you identify areas of improvement and modify the inventory software implementation.
Bonus Tip: Use Megavenotry!
Key Features of Megaventory for Manufacturing:
- Real-time Inventory Tracking and Reporting
- Production Planning and Scheduling
- Supply Chain Management and Order Management
- BOM Management and Tracking
- User-Friendly Interface and Seamless Integration with Other Business Systems
Megaventory’s intuitive design and its seamless integration capabilities make it a user-friendly solution for manufacturers seeking to enhance their processes. For those keen on exploring its capabilities, Megaventory offers a closer look at its features. Whether you are aiming to streamline operations or improve profitability, consider trying Megaventory today or schedule a demo to witness firsthand how our software can contribute to the efficiency and profitability of your manufacturing endeavors.
Take a closer look at our features here
Conclusion
To wrap up, you’ve learned that inventory management software is a tool that helps businesses track, organize, and oversee the items in stock. The software helps businesses to improve their overall efficiency when handling inventory items. It also improves inventory data visibility and planning. It’s an efficient way to reduce storage costs and boost customer satisfaction through prompt deliveries. Finally, roll it out and continuously analyze it to identify areas of improvement. With that, you’re all set to implement inventory management software for your small manufacturing business.
Author bio
Mauricio is the lead Cloud expert at Cloudwards.net, a data and user feedback-driven comparison engine for cloud storage, online backup, and VPN apps and services. In addition, He also loves producing educational videos and reviews to help people get the best services for their needs.