First of all, you need to know that there are two typical ways to manage SME’s inventory, range from Excel spreadsheets to a well-built Inventory management software, with each typical pros, cons, and use.
If you don’t have the budget for a dedicated inventory management software, then an Excel spreadsheet could be a solution for SME’s early stage.
Though the reduction of cost is quite cheaper (ranging from Free using Google Spreadsheets or up to $12.5/user/month with Microsoft Office 365 Business), you must take a lot of effort into tracking and analyzing your inventory just like you would with a software program.
Excel inventory management can become a lot more complicated, even with small businesses, when you forget to update or control the stock regularly, or when you have too many products.
All activities performed manually, without the help of a barcode scanner or POS system integration.
However, if an SME business doesn’t care about human error, or has a limited number of products and sales channels.
They can use the built-in formulas to organize and order the number in Excel with the available time and simply no cost worry,
Creating running inventory totals, and sales data based on the period is also possible, so long as your Excel inputs are correct.
Inventory management software
Dedicated inventory management software like Magento ERP (integrated with Magestore Magento POS) of Magestore will get SME business over obstacles created by manual Excel Inventory.
Essentially, even if you are a fan of Excel, you can easily import or export to a CSV or XLSX file. With it, you can wipe out problems like manual errors or sort through backorders.
Note: You can check these tips to implement backorder in Magento efficiently.
According to SBA (Small Business Administration – a US government agency that provides support to entrepreneurs and small businesses), poor inventory management is the 4th BIGGEST killer of SMEs.
And the statistics told the truth, 56% of small businesses end after 4 years with 90% of the cases be the mistakes from manual spreadsheets.
Here are the few benefits of using the Magestore inventory management system:
- Improve inventory visibility
- Better security by layered permission
- Ensure a smooth and on-time order fulfilment
- Seamless multichannel shopping experience
- Reduce paperwork inaccurate automated process
- Save time, effort, and operational costs
- Insightful and more correct planning