At the beginning of the business journey, tracking the stock might be accessible, even with standard tools like Excel spreadsheets. However, it quickly becomes necessary to implement advanced solutions that fit growing business needs. So, how do you choose the right software for your company? Today’s article answers the question, providing a comprehensive overview of inventory management systems.
What Is an Inventory Management System?
All the products a company has in stock, including items in both warehouses and stores, are called inventory. The process of tracking these products is known as inventory management. It involves monitoring items and orders, analyzing stock levels and sales, replenishing inventory, and more. This process can be complex and often requires a software solution for efficient management.
An inventory management system helps automate stock tracking and, in advanced systems, provides analytical features. Such systems may be optional for small businesses, but as business scales, they become necessary.
What Are the Main Steps of the Inventory Management Process?
Basically, the inventory management workflow can be divided into five main steps. Understanding them will help you choose the software solution that covers all your needs. Let’s discuss each step in detail, using our industry as an example.
Purchasing
First of all, you need to build your inventory and purchase used devices. At this stage, it's essential to track suppliers, prices, device conditions, dates, and other relevant data. Later, analyzing this data will help you identify the best suppliers for your needs, calculate your margins, etc.
Sorting
Once the goods arrive at your warehouse, you need to arrange them and track the location of each item. For example, you can organize the products depending on their brand, condition, and price. Additionally, you can use stock-keeping unit (SKU) numbers to make tracking your inventory easier.
Repairs/production
Although not all companies repair or refurbish devices, this step can be applied to most workflows. However, if you do, you need to control and track this activity. This will prevent you from confusing a not-repaired phone with a repaired one. During this step, it's important to gather information on repairs, associated costs, fixed defects, and other relevant details.
Order Tracking, Packaging, and Shipping
When you receive an order, you need to record it and then track all the progress made to close the deal. This includes collecting information such as ordered items, shipping addresses, and dates. This will help you provide high-quality customer service, reduce human errors, and efficiently manage your workflow.
Sales Management
Additionally, you need to collect as much information as possible about your sales. It is crucial for sales analytics and future business decisions. For example, you need data about the most sold phone models, the most profitable devices and distribution channels, etc.
Why Does Your Business Need an Inventory Management System?
Tracking these inventory management steps manually is time-consuming, unreliable, and inconvenient. However, implementing a wholesale inventory management system can benefit the process. Here are several ways in which a software solution can make your workflow more efficient:
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An inventory solution makes the process of tracking stock easy. It’s incredibly convenient to have all the information you need in one place, logically organized and structured. Therefore, your employees will spend less time on manual work, and explaining the process to the new staff will be easier.
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Apart from basic information about the device (location, cost, and other simple characteristics), you can collect any data you need. For example, NSYS Inventory, specifically designed for the used device industry, tracks IMEIs, functional test results, defects, grades, and other parameters.
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Inventory management systems are more stable, reducing the risk of accidental data deletion compared to spreadsheets. This ensures better data safety compared to basic spreadsheets.
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Professional solutions provide advanced analytics that will help you improve decision-making. With built-in mechanisms, you can detect the most profitable items, the most common reasons for returns, the suppliers that deliver defective goods, etc.
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When you have a system suitable for scaling up the business, growing the company is easier. Even if your business is now small and has only one warehouse, preparing for future growth is essential. Implementing a scalable solution is a decision that will benefit in the future.
What Features Should an Inventory Management System for the Used Device Business Have?
Different types of businesses require different tools for efficient inventory management. Therefore, it’s best to choose a solution developed for your industry that includes the specialized features your business needs.
As for the used device business, consider solutions that have the following tools.
IMEI-Tracking
The information about each device is connected to its IMEI number, making it easy to distinguish one phone from another. As IMEI is unique, it can be used for tracking both device characteristics (its blacklists, SIMlock, and financial statuses) and internal information about phone location at the warehouse, etc.
Moreover, NSYS Inventory has the results of ESN Checks & NSYS Diagnostics integrated into the solution, so you have information about more than 60 hardware tests in one window.
Advanced Analytics
Apart from tracking the inventory, specialized solutions offer analytics reporting that will help you improve decision-making and focus on the most profitable items. For example, the NSYS Inventory analyzes:
- The most popular device models
- Reasons for returns to suppliers
- Returns by supplier
- The most profitable models
- Sales and spending over time
Additionally, the integrated RMA functionality reduces the number of faulty devices at the acceptance step. Analyzing statistics will help you understand the main reasons for returns and supplier reliability.
Multiple Locations Tracking
Even small businesses should use an inventory management system capable of handling multiple locations, as scaling without it becomes difficult.
Analyzing the information from several warehouses separately and combined can bring valuable insights. For instance, you can track the most profitable sales channels and the most efficient workers or distribute your inventory better among the locations.
What Inventory Management Software to Use?
If you are looking for an inventory management system for your used device business, we recommend NSYS Inventory. The solution is specifically designed for companies in our industry and is suitable for both retail and wholesale businesses. NSYS Inventory has all the necessary features mentioned above, including tracking by IMEI, multiple location management, and analytics.
Moreover, it is integrated with NSYS Diagnostics, so you automatically get all the testing results in one window.
Ensure your stock is perfectly arranged for business scaling without any shortages!
