The Cornerstone for Successful Merchandise Management

Best Employees Look for The Best Companies
The Best Employees Look for The Best Companies
August 12, 2021
Successful Merchandise Management

To survive in the market and compete with competitors as a startup or as an experienced company, it is important that you are competitive in all areas. It also includes using a modern merchandise management system. Similar to the tools used in human resource companies in Michigan, the merchandise management system is a useful tool that helps you overview your inventory, plan appointments, and satisfy your customers.

In the following article, we would like to first explain to you what a merchandise management system is, what it can do, but also how a merchandise management system works and what you should pay attention to when choosing. You can read the most important information about it, including many tips, here afterwards.

What is an inventory management system?

In order to survive in the market, modern companies nowadays have to cope with many different tasks at the same time in the shortest possible time. Therefore, they rely on tools to help them. A merchandise management system is part of this and enables processes to run smoothly, which relieves various areas of your company.

With a merchandise management system, you can optimize the following tasks and work processes:

  • Capture of goods
  • Monitoring the inventory
  • Optimization of the movements in the warehouse
  • Purchase of goods
  • Disposition
  • Production
  • Sale

Thus, a merchandise management system or a merchandise management system is understood to be a computer-aided process that assists you in capturing and processing inventory data as well as movement data and the control of the warehouse process.

Merchandise management systems are now used not only by retail companies or retail chains but also by small and medium-sized companies. Inventory management systems are used primarily in manufacturing companies or in wholesalers or retailers. Central components of the software are sales, purchasing, incoming or outgoing goods, and warehousing.

Modern merchandise management systems automatically create offers or process orders automatically. In addition, delivery notes and invoices are created and the transfer to accounting takes place via an interface. In addition, stocks of goods can be controlled automatically and inventories can be carried out at the push of a button.

An overview of other advantages of a merchandise management system

  • Automated booking of incoming goods
  • Maintain relationships with your suppliers
  • Easier invoice control
  • Recording, monitoring, and optimization of warehouse movements
  • Maintenance of customer relationships
  • Automatic dispatch processing
  • Easy preparation of offers

Interfaces of a merchandise management system to other areas

A merchandise management system can have interfaces to other areas of the company, such as to/for:

  • Cashbox
  • Time tracking
  • Commission accounting
  • Financial management
  • Branch administration
  • Controlling

How does a merchandise management system work?

In the past, it was checked manually which items were still in the warehouse and manual lists were used to record which goods had been sold. The delivery notes were also created by hand – all of this was time-consuming and costly.

With a modern merchandise management system, various areas in the company are linked to one another, information is summarized and automatically passed on to the merchandise management system or to other areas.

It saves valuable resources that are then available for other projects. The inventory, which used to be very time-consuming, can be done quickly with the merchandise management system. Because the items in the warehouse now only have to be scanned and a transfer takes place automatically so that you always have an eye on your stocks. All relevant data is stored in the merchandise management system and is always updated on a daily basis.

For example, if you have distributed your goods to several warehouses, you can still know at the push of a button where and which items are in stock. You create on the fly important reporting and can also identify which goods are currently in demand or are longer.

It allows you to optimize your range and save storage space at the same time. You can also answer customer inquiries quickly because after all, a customer wants to know whether the item they have ordered can be delivered immediately.

Differences between ERP systems and merchandise management systems

The boundary between a merchandise management system and an ERP system (Enterprise Resource Planning) is fluid. Because this is also software that helps you plan and control your resources and business processes.

But there are differences in the range of functions. For example, if there is an interface to control, accounting, and materials management, then this is an ERP system.

How is a merchandise management system structured?

A merchandise management system is a software system in which the flow of goods in a company is mapped during a business process. Therefore, a merchandise management system is divided into different areas, such as:

Procurement of goods

With the merchandise management system, you can easily and efficiently determine your needs and carry out the procurement of goods and thus the order. With the help of the warehouse data and the sales data, an inventory management system is able to automatically create order proposals, determine requirements or initiate an order.

Warehouse management

The merchandise management system monitors your warehousing and carries out internal inventory management. In this way, you can automatically transfer your movement data to your warehouse management and, for example, carry out an efficient and fast inventory. At the push of a button, you always know how the current stock is in your warehouse.

Sales of goods

With the help of a merchandise management system, you can automatically create an offer, including the order, the delivery note, and the invoice. In addition, some ERP systems offer even more options, such as tracking customer data, creating a workshop order, or creating a warehouse receipt.

When to introduce a merchandise management system

An inventory control system ensures that you know your inventory at all times. With a scanner, for example, order picking is also made easier and all products can be recorded within a very short time. With some merchandise management systems, you can also manage several warehouses at the same time and always have an eye on the current inventory.

A merchandise management system is indispensable for certain company sizes, especially if you sell goods and cannot look at the warehouse yourself. You can connect a cash register system to the merchandise management system and thus benefit as a retailer or small company from the many advantages that a merchandise management system brings with it.

You can also create evaluations at the push of a button and find out, for example, which product is currently selling particularly well. Thus, a merchandise management system offers you added value, but the system must be adapted to your company and support your business processes.