How Automated Inventory Management is Useful for the Retail Industry

The advancement in modern technology is taking the business to the next level. The business entities are switching their day-to-day operational activities from manual to automated platforms. Like other industries, there has been seen a distinguished digital transformation in the retail industry. Particularly, during the pandemic, merchants have taken significant advantage of a one-stop e-commerce solution. Online retail solutions are comprised of order management, inventory management, product performance tracking, and order delivery. The automated retail solution ensures flexible e-commerce.

The importance of digital retail can be estimated when it is compared with manual methods. When it comes to manual retail operations handling then inventory management would be most challenging.

Let’s discuss what kind of hurdles occur when stock-keeping goes manual:

  • Inconsistent Tracking
    Usually, manual inventory management is done on spreadsheets which become hectic when product placement is required on multiple sales channels. Manual entry of products in and out leads to inaccurate data and it will become difficult to maintain the product tracking.
  • Warehouse Proficiency
    Inventory management at the warehouse is a labor-oriented and lengthy process. It requires the additional team to monitor labors which ultimately increases the overall cost.
  • Incorrect Data
    Manual inventory handling leads to incorrect count. The inaccurate stock information can cause empty stock which eventually increases the risk of consumer loss.
  • Demand Variation
    Customers’ demand can be changed, like they can replace the product thus, it is not a good idea to keep excessive stock. Also, it becomes tough to keep the manual records of large-size inventory.
  • Difficult to Locate
    In the warehouse, it becomes difficult to locate inventory when it is managed manually. It can cause inaccurate calculations and late shipments. Finding the right stock at the right time is crucial to keep customers satisfied.
  • Documentation
    Manual inventory management requires updated documentation and spreadsheets. This entire process is tiring and time-consuming, it requires a lot of concentration to keep the data error-free. Also, this process is not secure.
  • Warehouse Adjustment
    Warehouse space management is necessary to keep inventory intact. The warehouse space adjustment cannot be controlled via manual methods, if it happens then a large number of working staff is required to keep things aligned. Inventory management software greatly assists in warehouse management.
  • Inefficient Order Flow
    Sometimes the overselling leads to inadequate stocks. To avoid inventory shortage, retail solutions provide historical and seasonal data of customers’ order placement. Similarly, this predicted information prevents retailers from overstocking.

Connecting retail with online solutions, cloud or ERPs can help vendors to manage their inventory more effectively. A fully e-commerce integrated software will not only smooth the order management operations but also facilitate the stock management. The automated inventory management will be favorable for the retailers as follows:

Perks of Automated Inventory Management System in Retail Industry

The inventory management system is significant to manage various kinds of business domains. Automated inventory system helps retail industries as the catalyst which accelerates commerce growth in the market. The ultimate aim of this system is to offer the right product in an exact quantity, within a given time to avoid any inconvenience for its user. This allows an average business to obtain a quality inventory management system with the aid of the advanced POS software which carries the following tasks as it can manage multiple tasks and duties as a seller automatically, collecting orders at a time, keeping a check on business promotions and sales and it can be used to slog at different locations.

There are several ways by which modern software is cooperating with the retail industries to help them grow in their business.


  • It Saves Time
    Manually counts are quite lengthy and time-consuming but an automated system can save time and prevent calculating errors. Some business contains bulky directories it becomes easy when a business is programmed. It saves time in many other ways such as stock checks, assembling product information, doing SKUs, location recordings and reporting details, and whole more.
  • Free from Labor Administration
    There are several kinds of people who work in a firm but fewer companies are fortunate with efficient and proactive works but most businesses drop actual uniqueness in the comparative markets just because of having procrastinated and sluggish employ force, the firms can upgrade through an automated system which grantees authenticity, reliability, and productivity.
  • Product Transparency to Determine its Quality
    The ERP software tools can sight the capabilities of the product it keeps locating the product material more professionally because through this it becomes easier to pick any item from the list to know its batch number, manufacturing date, expiry date, number of remaining stock, or some other data, this helps a seller to know which is excess in stock and which is out of stock and predict the upcoming expenses.
  • Automation Gets Accuracy
    Accuracy, validity is the identities of the business thus it prevents manual mistakes. Programed systems pass data through appropriate methods that’s why the process remains flawless it is a general fact that keeping the process under a single shade helps to track things more smoothly which ultimately assures reliability and credibility and keeps the customer satisfied.
  • Well-Organized Management System
    Doubtlessly automated ERPs are highly organized manner which makes the work efficient. It’s a bit hectic to dictate to staff members about data managing, report making techniques, taking or placing an order all can be done in a single click by the virtue of inventory management system, not only this it integrates the business about what is needed to be updated.
  • Regulate Multiple Stores Remotely
    In this era when the world has become a global village modernized inventory management system is a part of it which facilitate to spread of small businesses into diverse outlets along this business start boosting in the market due to reason that inventory system automatically allocates new locations for the industry which includes franchisees management, outlets reporting, promotions and much more.
  • Cost Friendly
    The inventory management system is a great contribution for small business models because it is budget-friendly for them instead of hiring numerous employees, starts boosting the market inventory system automatically allocate new locations for the business which includes franchisees management, outlets reporting, promotions, and much more.
  • Knowledge of Sales Statistics
    Some inventories are lengthy enough to pact with also not everyone is the mastermind to crack complicated calculations and sometimes changing happens multiple time during a minute so it is hard to grab manually for these challenging situations automated inventory management system fix all hard and soft statistics for the retailer.
  • Prediction and Planning
    Automated retail solutions provide business intelligence reporting. Also, they have the feature to process customer data and display useful insights which ultimately help in making better decisions.
  • Getting Online Updates
    Keeping on updates helps the seller to get the latest information related to inventory to bring new products in the stock this would be useful to explore what is going on currently in the other marketplaces and what kind of new tactics they are about to introduce.
  • Facility to Integrate
    Automated inventory management systems ensure financial control options. Some software offers an accounting module as a built-in feature while other systems provide an integration option. It makes it easier for the retailers to look after the business cash flow along with operational activities.

Automated Inventory Can Be Problematic

Along with benefits, there are some issues of automated inventory management:
  • Server Down
    If e-commerce is hosted on the cloud-based platform then there are chances of server-related issues. This problem usually occurs due to heavy data or some technical fault. Although. It gets fixed but when it happens, retailers are immediately unable to access data and this factor drops sales.
  • Hacking and Fraud Risks
    Hacking is one of the top listed risks to any automated system. In e-commerce, the most privileged information includes customers’ detail, cash flows, and an online transaction portal. The hacking attack on any of these sections can cause financial loss and hurt brand value.
  • Limited Physical Audits
    Connecting retail with online or automated solutions limits human assistance thus there are chances of data theft or other suspicious activities. Automated businesses usually do not worry about physical audits. However, it is crucial to conduct audits weekly or monthly to avoid any loss.

Manual inventory management is full of effort and time taking as it requires a dedicated team to control every aspect related to stock maintenance. The addition of a human workforce not only increases overall operational cost but also boosts the risk of errors. While automated inventory management saves both time and human efforts, it significantly reduces the room for anomalies. Digital inventory management makes e-commerce more efficient, it helps in improvising the brand position specifically when vendors have multiple sales channels. Automated inventory management ensures timely product delivery and maintains order fulfillment records. Smooth order delivery flow wins customer satisfaction which ultimately reinforces vendor and customer relationship. Although, there are some limitations as well that make digital inventory management a bit challenging like system down due to heavy data and fraud risks. However, these issues can be resolved by employing high-tech solutions.

Written by

Obaid Arshad

Obaid Arshad

Obaid Arshad is CEO/Co-founder of Ginkgo Business Solution. He has diverse experience of 10+ years in versatile domains of e-commerce, logistics and tech-oriented business. His eminent role in ecommerce management empowered him to benefit the industry with his knowledge, vision and experience.