What Makes Cloud Inventory Management Software Any Different?
“Inventory” — sometimes, it means your supplies, your work-in-progress, your finished goods, and the business assets you use to transport each and turn one into another. Other times, it’s a process: the process of making sure that you have all of the above items that you should and none that you don’t. The best modern inventory management systems set up your business so that you have barely-adequate amounts of each to keep costs low but allow production to keep up with demand.
Inventory should, under optimum circumstances, exist simultaneously in two places: the actual building where the physical inventory sits, and somewhere in digital space where a count of each object in your building — a count that should actually match what you can find in the building itself — rests. Only by keeping accurate digital counts can a business calculate breakeven points, profit margins, mark-ups, and recognize inefficiencies and dysfunctions in the workflow process.
Obviously then, improvements in your company’s inventory management software have a direct impact on your long-term profitability. One of the best changes to hit the inventory software market in the past few years has been the development of cloud-based software.
Cloud-based simply means that the software is held on a remote server. You and any number of other customers log into the server and access the program, use it for your business purposes, and then log off and ignore it’s existence until the next time you need to use it. It’s called “software as a service” (SaaS), and it’s generally accessed by paying a monthly or yearly licensing fee to the company that hosts the server offering the SaaS.
Cloud inventory management software has a number of advantages, the most obvious of which is that it drives down IT costs by making software updates and fixes the responsibility of the software-as-a-service vendor that provides your inventory software. How is it that a server can afford to charge a monthly fee less than what you would pay your own IT department to maintain the software? Simple: they have hundreds or thousand of customers, so what you end up paying is a prorated portion of their actual costs.
Cloud-based inventory management software is just as robust, just as accessible, and easier on your business and your bottom line than traditional client-side inventory software. Try it and find out for yourself!