What are the Pros and Cons of Inventory Management Software?

20 Jun , 2017 News

What are the Pros and Cons of Inventory Management Software?

Regardless of the nature or type of business you conduct, inventory management is a core task. Inventory reports are important as they form the backbone of your enterprise and enhance its consistency. Also, accurate and updated stock information help you to lower costs, as you can avoid stock outs and overstocking in your business.

With this information, inventory management software is one way of controlling your stock levels. However, it has both pros and cons. Here are the top merit and demerits of inventory management software:

Pros

1. Efficiency and speed

If your business was in operation in the time before the inventory management technology, you could recall how you used to spend long hours performing stock-taking. With the new dawn of inventory management software, those moments are long gone. The software reduces the hours of stock taking as well as the efficiency of the process. As such, taking inventory is now an easy task.

2. Timely information

With the stock management system, you can get the information of your stock levels at any time. The systems update inventory information after every complete transaction. As such, you always have timely information on the business inventory. This information is critical in making appropriate business decisions.

3. Automated document generation and business processes

The inventory management systems have an option to automate documentation process. This means that you can automatically process invoices and orders directly from the system. Also, you can generate the financial as well as sales reports automatically. This aspect eases your business functionalities and provides timely information.

Cons

Apart from benefits, the inventory management systems have their shortcomings. Here they are:

1. Open to fraudsters and other risks

Even though the stock management software and systems are essential in reducing significant business risks, they expose it to new ones. For instance, since the system is reliance on technology, it is at risk of fraud attacks. Unless the business data security is enhanced, your enterprises can lose valuable information and revenue through fraud attacks.

2. Complex and expensive

Although the systems improve efficiency and speed in business operations, it comes at a higher cost. As such, you need more revenue to have an efficient inventory management system which may be unbearable for small business. Also, since the system is complex, the organization requires investing more on training your staffs which add more cost to your business.

Conclusion

In whole, inventory management systems have their share of pros and cons. For this reason, you need to consider the two aspects when deciding on installing the system in your business.

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