The Benefits of Using an Inventory Management System in Tanzania

For any business, keeping a tab of their inventory is a crucial factor. From warehousing costs to having the right amount of inventory in stock to fulfilling orders on time, running an effective inventory management is a complex task that impacts all aspects of your business. That is why most businesses depend on robust business management software with in-built inventory management systems to track, manage and maintain their inventory.   

A comprehensive business management software with an inventory management system helps businesses operating in Tanzania stay competitive while also streamlining complex operations. Having said that, choosing the right inventory management system can be a challenging task. Keep reading to understand inventory management fundamentals, its benefits, and features.   

What is an inventory management system?   

Inventory management is a critical component of a business's supply chain ecosystem that helps track, store, and analyze stocks at any given point of time. To put it simply, a comprehensive inventory management system helps businesses manage and optimize the stock keeping process while enabling them to plan, buy, store and sell stocks while saving resources.  

Benefits of using inventory management system in Tanzania  

An inventory management system helps businesses gain visibility into their stocks, improves operations, and optimizes costs. Apart from this, having an inventory management system has many benefits. Here are some of the ways an inventory management system can benefit businesses operating in Tanzania:   

• Improves accuracy: A robust inventory management system helps in organizing stocks better. This aids in getting a sense of what's in stock and ordering only the items you need to meet the demand.  
• Reduces costs: As a business dealing with inventory, you must be aware that stock, until sold, incurs costs. This comprises storage space, transportation fees, and other associated expenses. A robust inventory management system provides valuable insights into your stocks, thereby helping in optimizing costs.  
• Lowers the overselling risks: An inventory management system enables businesses to track the items in stock and what's on backorder. This, in turn, helps reduce the risk of overselling.  
• Avoiding stockouts and over stocking: A comprehensive inventory management system helps businesses better plan and optimize stock, thereby avoiding situations like stockouts and over stocking.  
• Greater insights: One of the benefits of having an inventory management system is that it helps gain better visibility across your supply chain. This helps businesses stay on top of their stock-keeping game by identifying trends or tracking recalled products or expiry dates. 
• Improves productivity: Businesses that use inventory management software have higher productivity. It helps reduce errors that often happen in manual processes, thereby enabling companies to focus on other critical tasks. 
• Increased Profits: Managing inventory manually can often lead to revenue loss and overspending. A robust inventory management system helps businesses avoid deadstock & overstock situations and streamline their inventory while eliminating the stock expenses associated with human errors, thus significantly increasing the profit margins.  
• Improves customer experience: An efficient inventory management system helps improve the customer experience. This implies that businesses can fulfill customers' orders quickly, thus improving the overall customer experience. 

What to look for in an inventory management system?   

Inventory tracking: While choosing the right inventory management system for your business, ensure that it allows you to track stocks throughout the entire supply chain cycle. An efficient inventory management system automates the entire stock tracking process, thus eliminating the need to complete tedious and time-consuming tasks manually. 

Inventory optimization: An efficient inventory management system helps businesses optimize the entire stock keeping process - from organizing items basis groups, categories, batches, and locations to maintaining the unit of measures, tracking what's in and what's out, and much more. These metrics help in maintaining inventory optimally.   

Inventory analytics: Analytics plays a crucial role in understanding the current status of the inventory. An efficient inventory management system provides actionable insights that help businesses identify trends, analyze where a business has invested its resources, etc. This, in turn, helps get a complete understanding of the inventory process.  

Inventory prediction: As the name suggests, inventory forecast allows businesses to determine which items will be out of stock and the ones in stock. This helps businesses to better judge the purchased quantity and get an understanding of what to purchase when. 

How TallyPrime help in managing inventory?  

A robust business management solution TallyPrime helps businesses manage inventory seamlessly by providing valuable insights that help make better decisions. Having said that, here are some of the ways TallyPrime helps businesses in managing inventory:   

• Being an adaptable inventory management system, TallyPrime helps manage exceptions so that no critical data stays outside the system, thereby assisting businesses in making informed decisions.  
• It comes with a wide array of inventory reports such as stock summary, aging analysis, and item-wise profitability, enabling businesses to track their stock movement and manage inventory efficiently.  
• TallyPrime's job or project costing feature allows businesses to track expenses and revenue information like material, labor, and more to the smallest detail. 
• The cost tracking feature helps businesses effectively track several associated costs like procurement costs, landing costs, and manufacturing or production costs. 
• Helps businesses manage and maintain batches with expiry dates, thereby improving visibility into the stock-keeping process. 
• TallyPrime's powerful job work feature (outsourcing and insourcing) makes the process of recording material issues and receipts an easy process.  
• The multiple stock valuation module allows businesses to set various stock valuation methods for each item basis the requirement. 
• The re-order level in TallyPrime enables businesses to get real-time insights into their stocks, like items that need to be replenished and more. 
• The bill-of-material feature allows businesses to define raw materials, parts, components, and quantities of each inventory that needs to be managed.  
• Allows businesses to record the entire manufacturing journey starting from raw material involved to tracking godowns from where the raw materials are dispatched, their production cost, and more 
• The flexible unit of measure helps businesses handle real-time complexities, quantify and manage stocks the way a business wants, and more. 
• Helps businesses segregate items basis groups, categories, batches, locations, and more.

Read More: 

• How to Process Payroll in Tanzania
• Accounting Packages For Your Growing Business In Tanzania