Do you know exactly where your inventory is at – raw materials, work in process or finished goods? If you don’t, you could be leaving sales and profits on the table. Whether you’re a an operations manager at a manufacturing facility or a decision maker looking for a tool to centralize data, knowing the location and status of the goods you have produced or purchased is a critical component of a positive bottom line.
Inventory tracking software can lighten this load by ensuring all your work in process is accounted for so that you can meet demand and avoid lost sales opportunities. Inventory tracking software easily and accurately captures inventory as it comes and goes and can help organize warehousing and production.
Many inventory tracking solutions are part of an enterprise resource planning (ERP) system that integrates tracking with sales, purchasing, accounting and more, helping reach that delicate balance between supply and demand more efficiently, while supporting data centralization and reporting capabilities.
We’re taking a deeper look at modern inventory tracking software capabilities and the features that support customer satisfaction and, hence, your bottom line.
Contents
What is inventory tracking software?
Role of inventory tracking software
Inventory tracking software features
Benefits of inventory tracking software
QT9 inventory tracking software
Inventory tracking is a sub-process of inventory management, focusing on monitoring stock levels throughout an organization, whether for finished goods, work in process or raw materials. This is accomplished by recording and reporting the current quantity of each item in stock and its location.
Inventory tracking software monitors inventory levels, so businesses can optimize the production and distribution of products from the moment they arrive to the instant they are sold. The primary goal of inventory tracking software is to ensure a business has the right amount of stock in the right places to best meet demand. And of course, it is an important factor in the proper accounting of work in process as this impacts profit and loss.
Inventory tracking software automatically captures data as businesses receive, store, manufacture and distribute products. Many modern inventory tracking software systems use barcoding to record this data in real time, giving a business automatic insight into what products are available to fulfill orders. In the retail industry, this is especially important to prevent stockouts. For manufacturers, inventory tracking is used to ensure work in process is accounted for and to help in planning for getting raw materials in order to prevent production delays.
Beyond accounting for physical location, inventory tracking software can give operation and purchasing managers important real-time and historical supply and demand data, alert them to reorder at certain minimum stock levels, and indicate opportunities to offer incentives that will move products more quickly to avoid dead stock.
Inventory tracking software helps manufacturers ensure work in process is accounted for and raw materials are where they need to be to prevent production delays.
The way a business uses inventory tracking software depends on the type of inventory it manages. With an inventory software solution in place, you can expect to gain real-time alerts and reporting that makes forecasting and order management easier. Important features of modern inventory tracking software include:
One of the most impactful features of modern inventory tracking software is the ability to provide real-time data and views of inventory levels across locations, whether it’s among multiple warehouses, in transit or on store shelves. This provides up-to-the-minute information on stock levels, allowing companies to respond swiftly to changes in demand and supply conditions.
Cloud-based, real-time inventory systems offer the ability to create automated low-stock alerts and auto-replenishment functions, helping to prevent stockouts or overstock situations and ensuring inventory is always where it’s needed most.
Comprehensive traceability through lot and serial number tracking is essential for businesses that deal in regulated products or perishable goods or that require strict quality control. This feature enables detailed tracking of products across their lifecycle, minimizing waste from expired goods and allowing for quick identification and retrieval in the event of a product recall.
Barcoding and digital labeling tools are key to improving operational efficiency by eliminating the need for manual data entry. By leveraging these tools, your inventory tracking system can instantly update stock records and transaction data as items are received, transferred or sold. This not only reduces the chance of human error but also provides accurate, up-to-the-minute data about inventory levels, supporting smoother workflows and better decision-making.
Advanced inventory software provides powerful analytics that enable businesses to review sales trends, forecast demand and generate detailed reports. By harnessing real-time data, management can make well-informed decisions on stock replenishment, supply chain optimization and resource allocation. This predictive capability ensures your business stays agile in responding to changing market demands while minimizing excess inventory and associated carrying costs.
Supplier product performance, as an extension of a manufacturer’s own products, ultimately impacts the manufacturer's reputation. Inventory tracking software enables companies to store and track supplier details, communicate and resolve issues efficiently, and document performance for future planning.
Many organizations still turn to electronic spreadsheets to track inventory because they are accessible and familiar. Unfortunately, outdated spreadsheets along with paper processes are time-consuming and subject to human error. Studies indicate that businesses can see efficiency gains of 25 percent, on average, by implementing inventory management software. Some key benefits of employing modern inventory tracking software include:
Efficiently and effectively tracking inventory helps manufacturers maintain that delicate balance between ensuring there is enough stock to satisfy demand. It also helps avoid overstocking so that there is too much supply, which hinders profits and cash flow. By ensuring products are consistently available, businesses can capture all potential sales, avoiding the revenue loss that occurs when customers find products out of stock.
With real-time information about what stock is available to satisfy customer orders, businesses are better able to prevent stockouts, which lead to disappointed customers who may go elsewhere to satisfy their interests, potentially never returning to your brand. Being able to give customers accurate updates on the status of their orders is critical to customer satisfaction. Setting customer expectations early in the sales cycle is important to building brand loyalty.
Inventory tracking data helps manufacturers see exactly what raw materials are available, where they’re located and if more needs to be ordered or produced. The software can link with production systems to monitor work orders, tracking material use as parts move through production. Production schedules can be better aligned with material availability, helping to avoid bottlenecks and get products to customers faster.
Employing proper inventory tracking helps companies avoid inventory shrinkage from factors such as employee theft, damage and administrative errors. Improved accuracy makes it easier for companies to identify shrinkage patterns and take appropriate preventive measures. It also may be possible to set up alerts within inventory software that identify discrepancies or irregularities in stock levels in real time, enabling timely intervention.
From preventing costly stockouts to improving customer satisfaction and reducing shrinkage, the benefits of a modern inventory tracking system extend across the entire supply chain. Whether you're a manufacturer tracking raw materials or an organization looking to centralize more of your information, leveraging the power of inventory tracking software ensures that your business remains agile, efficient and ready to meet market demands head-on. Embrace inventory management technology to keep your inventory—and your business—on the path to success.
QT9 MRP can help you reach and maintain that ultimate balance between inventory supply and demand by centralizing your business operations. QT9 MRP enables real-time insight into stock levels and locations, while providing advanced features that help you integrate inventory control into the success of broader operations.
With QT9 MRP you get:
For highly regulated businesses, QT9 MRP seamlessly integrates with QT9’s highly rated quality management system (QMS) software. What’s more, you’ll get unlimited training, unlimited customer support, free software updates and tailored implementation support, all at an affordable price point.