February 23, 2024

Maximizing Productivity: The Role of Software Modules in Inventory Management

Production and Manufacturing
By AnilKesariya 0 Comments

Maximizing Productivity: The Role of Software Modules in Inventory Management Systems

This article describes the essential modules to consider when selecting an inventory management system. It also discusses the most recent improvements in these systems, what are specifications of an inventory management system, features industry-wise and how they benefit management by facilitating new advancements.

What Are the Key Specifications of Inventory Management Systems?

The primary inventory management system specifications include a method for storing, organising, managing, and analysing inventory data. System requirements include:

  • An easy-to-use interface that does not require much training, support, or documentation.
  • Automation to eliminate manual operations in inventory management-related business functions.
  • A dependable, secure database that delivers accurate, real-time data.
  • Performance that enables rapid, actionable inventory monitoring and control.
  • Administrators can simply add software modules with little configuration, making the system expandable.
  • Software integrations and automated features reduce the need for manual inventory updates and inputs.

What Are the Top Software Modules in Inventory Management Systems?

E-commerce Module

Ecommerce modules must support accurate inventory controls and automated operations that deliver products to clients without disruption.E-commerce modules are vital components of inventory management systems, especially for enterprises who want to or are already selling their items online. These modules offer the tools and functionality required to conduct online commerce.

  • E-commerce connects a company directly to its customers. It administers the online product listing for products prepared at the plant. These websites not only show products, but also process orders.
  • Online orders are received into the ERP system and dispatched based on inventory availability. Once an order has been dispatched, emails with tracking information are sent to the customer’s email address.
  • If the inventory is about to run out, the system notifies you of the low inventory and automatically  restocks it according to the records.
  • The shopping cart feature is a critical component of e-commerce modules, allowing customers to add things to their basket for purchase. The checkout process is optimized to let clients securely navigate payment and shipping options. The integration of numerous payment gateways and transportation companies guarantees that transactions run smoothly.
  • These operations can be performed without human intervention. The system also includes a module for accepting consumer returns after quality checks, similar to what we see on shopping applications.
  • Virtual inventory can be developed for drop-shipping. We can send the stock to the customer’s nearest vendor. This minimises late delivery and reduces transportation costs if it is sent from a nearby warehouse.
Accounting Module

Accounting modules automate financial and accounting processes such as accounts payable and receivable, procurement, and third-party payments, as well as revenue categorization in integration with the inventory management system.

  • The accounting module automates outgoing payments to vendors, suppliers, and creditors. In addition to payments, there is invoice processing, payment scheduling, and cash flow management. ERP systems can maintain payment terms and discounts for specific suppliers.
  • The ERP system allows us to set rules for FIFO (first in, first out) inventory based on rates and demand.
  • The ERP system allows us to track our receivables from clients as well as hired machinery. Receivables management improves financial stability by minimising outstanding accounts receivable.
  • If the inventory runs out or is close to running out, a fresh order is placed with the supplier. The system can be configured so that only the lowest-priced supplier receives orders. The system is configured such that orders are routed to low-cost suppliers or that negotiations with them can be conducted accordingly.
  • Accounting modules help businesses manage their third-party payments and expenses. This involves handling payments for utilities, rent, insurance, and other business expenses.Businesses that automate third-party payments and expenditure management can increase productivity, decrease manual errors, and assure compliance with expense policies and regulations.
  • Accounting modules classify revenue earned by the company, allowing for proper financial reporting and analysis. This entails categorising revenue streams based on their source, such as product sales, services performed, subscription fees, and other income streams. 
Data Administration Modules

Data Administration Modules are the one which helps the user to manage the tasks like password saving, data of all the orders, saving customer details, data recovery and security. Such tasks can be handled into one system.

  • This module enables administrators to manage access to the inventory system by forcing users to authenticate themselves with passwords.
  • The data administrator module does creation, modification or deletion of the user accounts within the system.
  • Administrators can give varying levels of access privileges to users based on their positions within the organization, ensuring that sensitive data is only accessed by authorized staff.
  • These modules offer a user-friendly interface for updating inventory records in real time.
  • Users can quickly add new things to the inventory, update current item information (such as number, price, and description), and delete out-of-date or obsolete items from the system.
  • These modules can be configured to provide automated alerts and notifications to administrators in the event of discrepancies or low stock levels, encouraging them to take action to restock inventory.
  • Data administration components enable the easy export of inventory data in a variety of formats, including CSV, Excel, and PDF.
  • Administrators can tailor export settings to include specified data fields, date ranges, or other criteria, ensuring that exported data fulfils the needs of the intended use case.
Warehouse Management Modules

Warehouse modules include essential inventory management activities such as appointment scheduling, order receiving, returns handling, labeling, and third-party carrier management.

  • Warehouse modules make it easier to schedule appointments for both inbound and outbound shipments.This feature enables warehouses to efficiently manage the flow of goods by coordinating the arrival and departure timings of trucks, transporters, and other logistics partners.
  • Appointment scheduling aids in optimising resource utilisation inside the warehouse by ensuring that receiving and shipping activities are carried out in an organised and timely way.
  • Modules include tools for receiving and processing inbound orders from suppliers and other internal/external sources.When an order arrives, warehouse personnel can utilize these modules to update inventory records, compare received quantities to purchase orders, and assign storage places for arriving items.
  • Real-time visibility into incoming orders allows warehouses to maintain precise inventory levels and respond quickly to client demands.
  • Return management is an important part of warehouse operations, and dedicated modules make it easier to process returned items efficiently.These modules simplify the inspection, categorisation, and disposition of returned goods, allowing warehouses to quickly reintegrate reusable things back into inventory or initiate proper disposal techniques for damaged or unsaleable products.
  • Warehouse modules feature the ability to generate and print various sorts of labels needed for inventory management and shipping operations. Labels can contain item bar-codes, serial numbers, batch/lot numbers, destination addresses, and other pertinent information.
  • Automated labeling processes in these modules improve accuracy, eliminate labeling errors, and increase traceability throughout warehouse operations.
  • Dedicated modules allow warehouses that collaborate with third-party carriers or logistics providers to communicate and coordinate more seamlessly.
  • These modules help warehouses handle carrier contracts, track shipments in transit, create shipping labels and documentation, and reconcile carrier invoices.Integration with third-party carrier systems provides real-time visibility into shipment progress, improving overall logistics efficiency.
Order Management Modules

Order Management Modules are critical components of a comprehensive inventory management system that help to streamline and optimise the process of handling buy orders, controlling parts requirements, and aggregating orders. These modules include a variety of functions aimed at streamlining the procurement and fulfilment operations. 

  • Users can create POs directly in the system, specifying supplier information, item quantities, pricing, delivery dates, and terms of purchase. Order Management Modules provide centralized tracking of PO statuses such as order confirmation, shipment tracking, and receipt confirmation.
  • These modules aid in the management of production components and component requirements within manufacturing or assembly processes.Users can develop and manage bills of materials (BOMs), or parts lists, which outline the components required to manufacture final products.
  • Order Management Modules enable the consolidation of several orders or requisitions into a single, efficient dispatch.
  • Users can aggregate orders depending on destination, shipping method, supplier, or schedule to reduce shipping costs and streamline logistical processes.
  • Consolidation features serve to cut transportation costs, shorten transit times, and increase overall supply chain efficiency.

Important Inventory Management System Features Industry-wise

Inventory management systems include software capabilities that target certain markets, customer bases, and product kinds. This section provides examples of the top inventory management system features to consider based on industry.

We have spitted industry types into major 4 types : Manufacturing, Retail, Wholesale and E-commerce.

Manufacturing:  Manufacturing inventory management systems include capabilities for both material-based inventory and warehouse management. These features include enhanced unit conversion capabilities for bulk material stock, lean production processes, material requirements planning, and bill of material invoicing.

The top inventory management system characteristics for manufacturing are Unit-of-Measure Conversion, Automated Ordering, Raw Materials Planning, Purchase Order Management and Serialised Inventory.

Retail: Retailers rely on inventory management capabilities to improve the in-store consumer experience. They require technologies to enhance inventory tracking, demand forecasts, and inventory alerts. Accurate, multi-location management tools are critical for multi-channel companies (purchase online, pick up in-store). 

The top features for retail include Partial Receiving, Back Order Management,Demand Forecasting and Cycle Counting.

E-commerce: Ecommerce inventory solutions must support accurate inventory controls and automated operations that deliver products to clients without disruption. Accounting integrations for online payment processing, email invoicing, and inventory management are popular ecommerce services.

The top inventory management system features for ecommerce are Returns Handling, Automatic Restocking, Multiple-Carrier Shipping and Virtual Stock Control.

Wholesale Distribution: Wholesalers who use online distribution channels require inventory management tools that let them monitor and trace large goods, manage various suppliers and consumers, and automate procedures.

The top features for wholesale wholesalers are Sales Order Fulfillment, Multiple Warehouse Fulfillment, Lot Tracking and Bin Management.

Jupical’s ERP system for the Manufacturing Industry enables firms to succeed in today’s changing environment. Our expert team is dedicated to offering useful business insights and automating procedures, allowing you to prioritise critical activities. Entrust us with your needs! Schedule an appointment today and receive a complimentary trial.