Did you know that inventory management management for small businesses is vital and key for business success? Don’t be hesitant, this article will help you understand everything you need to know to ensure excellent inventory management for your small business in 2023.
Inventory Management for Small Business
Before diving deep into inventory management for small business, let us understand what is inventory management? It’s part of supply chain management involving inventory tracking from Point A, B and the point of sale.
Brokerage logistics is an existing link between shippers and carriers for covering loads at friendly prices and rewarded by commission.
Arranging freight orders and tasking freight carriers offers logistics solutions, Third party logistics brokerage allows businesses to outsource working logistics from the load storage to delivery.
Logistics brokerage services entail prior knowledge of freight carriers and load owners ready to offer a commission for safe delivery to selected destination.
At a fee, logistics brokerage companies are able to connect a secure link between the shipper and carrier for shipment. Logistics brokerage is essential in vetting the loader and carrier for easy dispatch of shipment. Cost and other terms are negotiated smoothly.
Inventory management process for a small business outlines how to track the stock received as well as deliver customer orders. Cycle count has been used and involves physical stock taking of a select part of the warehouse. It needs labour and time as some operations come to a halt in the warehouse.
As such, installing a reliable inventory management system helps enhance inventory planning and minimize excess to free up working capital. Logistics brokerage companies employ technology to handle transactions and operate as a link for various supply chains.
A small business has limited resources to run large-scale sales channels, therefore, third party logistics brokerage offer solutions to an adequate inventory management process. Inventory control is enabled through logistics brokerage services as real time data on amount of inventory is accessible from operation records.
With such logistics solutions in place, a small business can run an effective inventory control at all times.
3PL Inventory Management
3PL Inventory Management is done by companies that integrate and offer subcontracted logistics and transport services. Apart from cutting cost, the third party company has a structure suitable to the outsourcing small business, hence the ability to meet customer needs and adaptability.
Third party inventory management offers external support for a small business to create robust supply chain networks. This enables small companies to outsource some or all supply chain operations and cut costs incurred on manpower, transportation and warehouse management.
3PL inventory management may extend to provision of raw materials as well as production and procurement of goods. Effective inventory management and order fulfillment is achieved by using advanced technology and hiring a team of skilled personnel.
A small business planning to scale up operations at lower costs needs to source the services of reliable and flexible 3PL Inventory Management that is adaptable to its structure and requirements.
3PL inventory management helps identify the needs in a small business to avoid overinvesting in stock. The management software used identifies what stock needs addition and keeps track from the date of purchase to the sale of the product.
Once the inventory system is in place, the entrepreneur can benefit from lower cost of in-house inventory management. Software based data is more accurate in decision making for the business.
Less focus is placed on operations and lower running costs enable more effort in scaling up the expansion of the business. Real time access to stock levels is possible with the 3PL inventory system. This in-turn eases the burden of frequent manual stock taking.
For a small business to serve customers in multiple cities without the need to open a chain of warehouses, a 3PL inventory management with a wide network is needed.
Software for Inventory Management
Once a small business identifies the need for software inventory management, steps to identify the most suitable for operations are taken. A management software has to track products in the entire system from purchase, transportation, storage and the orders supplied to customers.
Performance insights and specific features fit for a small business have to be suitable to the structure of the relevant industry. A free version available for inventory control can be tested, hence accurately determining the amount of inventory before the small business opts to purchase a management software.
3PL Inventory Management Software
Third party logistics enable small and eCommerce business owners to achieve effective inventory management by outsourcing external resources to manage supply chain operations, warehousing and logistics.
The 3PL Inventory Management Software offers a cloud-based inventory. Real time data for entrepreneurs is accessible via the web to track inventory levels remotely on any mobile or desktop device word-wide.
10 Inventory Management Software for Small Business
Listed below are the Inventory Management Software available for small businesses to install in the inventory system
- Zoho Inventory
10 Free Inventory Management Software for Small Business
Listed below are the free inventory management software for small businesses. You have the preference to choose the software that suits your needs.
- Odoo Inventory
- inFlow Inventory
- Zoho Inventory
- ABC Inventory
- Right Control
To Wrap Up
Advanced technology has simplified business operations. After keen evaluation, small business owners can save time and resources by installing an inventory management software. Whether in-house or outsourced, a digital inventory system can allow a small business to scale up the scope of operations with ease.
Essential factors an entrepreneur should consider before subcontracting the services of 3PL inventory management are pricing, compatibility of technology between the two companies, type of value added services and warehouse locations.
A comparison of various 3PL inventory management is also important so as to access the specific services that suit your business in terms of shipping and logistics.