Current manufacturing operations depend critically on how well you manage your inventory. Effective management of inventory, sourcing, distribution, and warehouse operations impacts all aspects of your business. It affects everything from customer satisfaction to the efficiency of your production process. This is one of the reasons why sophisticated inventory management solutions are in demand. There is a vast array of solutions available in the market today. They streamline your overall inventory management process to ensure you hold a competitive edge over your rivals in the global market.
Further, the latest solutions can be hosted over the cloud. These cloud based management applications offer additional features like minimum downtime and offshore installation. They are also cost-efficient and facilitate quicker system configuration as well as integration. This article helps you understand what is a cloud-hosted inventory management solution and why you should use it.
Reports suggest that the market for inventory management solutions deployed over the cloud is growing at a faster pace. For the forecast period of 2020 to 2026, it is projected to grow at a CAGR of over 9%. On the other hand, the overall market is expected to grow at 5% during the same period.
Table of Content:
- Seamless Management System
- Live Stock Updates
- Remote Access
- Reduced Errors
- Data Security and Protection
- Data Analytics and Advanced Reporting
- Optimized Supply Chain
- Business Continuity
- Better Communication
- Real-time Visibility
What is a Cloud Based Inventory Management
A cloud-based (or SaaS-based) inventory management solution is an online application that helps you track and maintain your organization’s entire inventory operations. It offers a lot of advantages as compared to the conventional on-premise inventory management system.
An orthodox inventory management strategy involves a lot of manual processes that are error-prone. A cloud based Inventory management solution helps you get rid of all those errors. It helps you effortlessly track all your incoming as well as outgoing inventory, improving the overall productivity of your operations.
A cloud-powered inventory management solution makes conventionally sluggish and unpopular processes rapid and efficient. It allows you to focus on other crucial business aspects such as increasing brand awareness and making new product strategies. The use of cloud based inventory management software has improved the efficiency of inventory tracking and ordering processes.
Why You Need Cloud-Based Inventory Management Solution
To the casual eye, an inventory management software hosted on the cloud may seem just another application that functions over the internet. However, it is a lot more than that. From splendid user experience to exceptional integrations, it offers a host of impressive features.
Here’s a list of some of the top benefits of using cloud hosted or cloud-based inventory management solution:
1. Seamless Management System
A cloud-based inventory management system is as easy and effortless as an email. You simply need to log in with your credentials and you are ready to roll. It is fairly easy for you to initiate your preferences such as taxes, currencies, and warehouses within the system. Overall, the cloud solution allows you to cater to all your inventory management requirements without even breaking a sweat.
2. Live Stock Updates
With a cloud inventory management system, you have real-time stock updates at your disposal. You can look at your inventory data any time of the day and see if it matches your forecasted demands or not. You can act proactively and have sufficient stocks to cater to your customer demands. It is extremely important to ensure enhanced customer satisfaction and steer clear of stockouts.
3. Remote Access
You have the liberty to access all your business data whenever you want. All your inventory information and reports are available to you at any geographical location. You just require a device with a web browser and a connection to the internet. That way, you are just a few taps away from your business.
You also get a native smartphone application that provides you the best user experience. This application is compatible with most devices and offers you an easy interface to access your data.
4. Reduced Errors
A cloud-hosted inventory management solution decreases your inventory errors and the possibility of ‘stock walking’. It brings automated processes into the whole system and removes the otherwise inevitable mistakes associated with inventory management. Because of this, all the stakeholders including the manufacturer and the logistics partners get accurate information immediately. It helps all the involved entities save a lot of money and time.
5. Data Security and Protection
A cloud-based system frees you from all the worries pertaining to the safety and security of your critical business data. All your data is stored remotely on a safe cloud server that is protected by sophisticated security measures. Any modifications made to the information are straightaway synced with your data in the cloud.
Moreover, your cloud service provider regularly upgrades your cloud inventory management application to safeguard it against any cyber threat.
You may also see: What are the Top 10 Emerging Cybersecurity Challenges
6. Data Analytics and Advanced Reporting
Knowing accurately about your future stock requirements comes in very handy while managing inventory. Cloud inventory management systems facilitate demand forecasting to help you estimate the right amount of stock. This enables you to meet your future stock demands precisely.
These systems also help you make timely, informed decisions with advanced, automatic data reporting. You always have access to all the real-time reports that you can utilize to benefit your business.
Moreover, you have access to all your historical business data. An in-depth analysis of this data gives you a clear picture of what works well for your business and what doesn’t. This helps you keep your business on an upward growth trajectory.
7. Optimized Supply Chain
With cloud inventory management, your overall supply chain management becomes extremely easy and optimized. You have a single platform to manage as well as track the distribution of your products in real-time. Moreover, the system helps you automate most of your procurement processes. This saves a significant amount of time that is otherwise devoted to the manual, humdrum administrative jobs.
It is always a wise strategy to invest in products or technologies that are in line with your vision and facilitate scaling as your business grows. A cloud-hosted inventory management software enables you to quickly scale up whenever you need to expand your business operations. The flexibility and scalability of cloud based inventory software have made it a popular choice among businesses of all sizes.
Hence, you will always have the required resources to establish an additional distribution hub or a new site altogether. You just make a scale-up request and your service provider will oblige instantly.
9. Business Continuity
A cloud-based management system offers on-demand, remote access that enables you to work from any part of the world. That way, you are not confined to work only from your physical offices. It goes a long way in ensuring your business continuity. It seems a very simple functionality on papers but is immensely fruitful in unprecedented times like the COVID-19 pandemic.
Therefore, a cloud-powered inventory management system empowers you to eliminate the location barrier from your business. It makes your business future-proof, more efficient, and productive.Many businesses are adopting cloud-based inventory management to streamline their operations.
10. Better Communication
A cloud-based inventory management system facilitates transparency between you and all the other collaborating entities. This enhanced transparency is conducive to better collaboration and communication between important members.
Better communication ensures smooth integration among manufacturers, suppliers, distributors, salespersons, and other significant decision-makers. It also accelerates the overall transaction. Therefore, it is paramount to a successful business.
11. Real-time Visibility
Cloud-based inventory management systems provide real-time visibility into inventory levels, stock movements, and order status. This allows businesses to make informed decisions, optimize inventory levels, and respond quickly to changes in demand.
Top Inventory Management Software For Your Small Business
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The Bottom Line
The way you manage your inventory can have extreme effects on your overall business. A cloud-hosted inventory management solution facilitates business growth with its effective, cost-efficient, scalable, and accurate management practices. On the other hand, an orthodox system may push you out of the global competition with its error-prone, sluggish, and unproductive processes.
Moreover, a cloud-hosted management solution allows you to focus on other critical facets like product development, sales, and customer services. This enhances the overall growth of your business.
If you are a business owner worried about your inventory management practices, you must immediately move your practices to the cloud. You can do that by hosting an inventory solution with Sagenext. It offers superior hosting services along with excellent customer support and affordable prices.
What is SaaS inventory management?
SaaS (Software as a Service) inventory management uses a cloud-based software solution to manage business inventory. In this model, the inventory management software is hosted and maintained by a third-party provider, and users access it through the Internet on a subscription basis.