When asked what inventory management is, business owners often say it’s about keeping control over stock levels: optimising how much inventory your business holds, to minimise costs associated with inventory handling, obsolete stock, and logistics. While inventory management assists with all of these things, its benefits to a business extend far beyond this. With the software available today, a good stock management system can help with making better sales, customer retention, business data analytics, security, and cash flow.

1.
Inventory
Management
-­‐
More
Than
Just
Controlling
Your
Stock
When
asked
what
inventory
management
is,
business
owners
often
say
it’s
about
keeping
control
over
stock
levels:
optimising
how
much
inventory
your
business
holds,
to
minimise
costs
associated
with
inventory
handling,
obsolete
stock,
and
logistics.
While
inventory
management
assists
with
all
of
these
things,
its
benefits
to
a
business
extend
far
beyond
this.
With
the
software
available
today,
a
good
stock
management
system
can
help
with
making
better
sales,
customer
retention,
business
data
analytics,
security,
and
cash
flow.
One
critical
aspect
of
inventory
management
is
its
ability
to
help
staff
make
sales.
With
good
inventory
management,
sales
staff
will
know
exactly
where
an
out-­‐of-­‐
stock
item
is
being
held
(for
example
in
a
warehouse
or
other
store),
and
how
long
it
will
take
to
get
this
item
in
store
or
out
to
the
customer.
This
makes
it
much
easier
for
staff
to
close
a
sale,
as
they
can
provide
the
customer
with
definitive
information
about
the
products
they
want.
A
related
benefit
is
improved
customer
retention.
Past
stock
data
can
be
analysed
to
predict
the
optimal
levels
of
inventory
to
be
held
in
store
at
different
times
of
the
year,
adjusting
for
seasonal
trends
in
demand.
Further,
a
robust
inventory
management
system
allows
a
business
to
make
good
on
their
commitments
to
the
customer
in
regards
to
when
certain
products
will
arrive
in
stock,
or
be
delivered
to
them.
Customers
will
continue
their
patronage
at
a
business
because
the
products
they
want
are
more
likely
to
be
available
in
store
–
and
if
they
are
not,
then
these
customers
can
at
least
be
certain
about
when
they
will
receive
the
product.
The
benefits
of
inventory
management
data
analysis
do
not
end
there.
Inventory
management
software
can
tell
a
business
what
products
are
most
in
demand
–
nationwide
or
internationally.
It
can
even
show
whether
certain
products
are
more
popular
in
certain
regional
locations,
and
if
certain
common
features
of
products
are
more
popular
than
others.
This
can
help
with
strategic
decision-­‐

2. making
and
future
product
development,
as
well
as
more
logistical
decisions
such
as
warehouse
organisation.
or
example,
the
most
popular
products
can
be
put
at
the
front
of
the
warehouse
to
optimise
collection
time,
and
products
often
bought
in
combination
can
be
placed
together.
Data
analysis
can
tell
a
business
about
returns
for
different
products,
so
that
defects
or
other
problems
can
be
detected
quickly.
It
can
also
give
information
about
mark-­‐ups
of
different
products
in
relation
to
sales
made,
so
that
pricing
decisions
can
be
optimised.
Inventory
management
can
also
help
with
security.
Shock
events
such
as
theft
can
disrupt
a
business
greatly,
and
need
to
be
identified
as
soon
as
possible.
An
inventory
management
system
allows
for
early
theft
detection,
as
stock
levels
can
be
viewed
in
real-­‐time,
and
then
investigations
can
be
started
with
minimal
disruption.
Finally,
inventory
management
can
improve
business
cash
flows.
It
allows
businesses
to
purchase
the
right
levels
of
stock
so
that
they
do
not
suffer
from
large
cash
shortages
or
surpluses.
It
can
also
make
management
aware
of
when
larger
amounts
of
inventory
need
to
be
purchased,
so
that
other
purchases
such
as
property
and
equipment
can
be
timed
accordingly.