Updated: Dec 10, 2021
The world has experienced a dynamic transformation in business technology. The business world has experienced growth in e-commerce and consumers have been opting for online shopping rather than going to the stores. Hence, it is crucial that businesses can realize cost-effectiveness, place and time utility for them to remain competitive. The adoption of cloud-based inventory management is one way to accomplish this. The concept involves moving software or hardware from an in-house server or computer to a third party’s data centre.
A cloud-based inventory management system is intended to reduce cost, increase capital efficiency and improve customer satisfaction, which comes along with operational efficiency, cost-saving and many other benefits to the supply chain.
There are several benefits of using a cloud-based inventory management system in a business organization. They include;
Convenient inventory update
The cloud’s fame can be accessed from anywhere as long as you have an internet connection. This means that if you run multiple businesses in different locations, you do not have to make inquiries through the phone, as changes made will be evident on your end. Besides, the cloud is reachable from any operating system.
With cloud-based inventory management in place, the business owner can keep track of the inventory and stock movement across all channels. It helps reduce out of stock incidences.
Improved customer service
Excellent customer service is an essential pillar of any business success. Cloud-based inventory management helps improve customer service to a great extent. It should avail the right levels of stock to customers, serve available customers, recognize loyal customers and have shipping options to the customer’s premises.
The approach allows you to check inventory for quick and informed decisions in a business organization. It also automates the supply chain where for example, the execution of an order can be done without necessarily involving human labour.
Safety and security
Safety of valuable information is guaranteed when cloud inventory management is employed in a particular business organization. Data backup on storage devices is not needed. Any change made are saved. Constant update on the cloud inventory management software ensures security against cybercrimes
The business needs not to do maintenance of both software and hardware on the premises. The system also cuts on capital investment as one need not invest heavily in IT.
Effective cloud-based inventory management should be able to relay real-time operation, i.e., Order execution, selling process and dispatch of the goods to the customer.