August 11, 2023

8 Advantages of inventory management

There are many reasons why companies in almost every industry should keep track of their possessions and values (assets). Simply put, an asset is anything that your company owns and uses on a regular basis - it is called an "asset" or an asset because it has value to the company. Assets can be various things, for example, a vehicle, a machine, a laptop, a medical device, a camera, and so on, as well as non-physical assets such as licenses or subscriptions. No matter what type of assets your company owns, the following eight benefits of inventory management will show you why it is important to implement systematic inventory management.

8 Advantages of inventory management

1. reduction of maintenance costs

It's important to reduce the cost of repairs to things like machinery, equipment and vehicles so your assets can be used longer. If you organize maintenance well, you can reduce both emergency repairs and general repair costs. That means you'll save money because your things will last longer. Whether you have vehicles, use medical equipment or IT hardware, good maintenance planning also helps you avoid costly work stoppages or delays. But monitoring software licenses, subscriptions and leases also falls under this umbrella.

Inventory management software, such as My SAM, lets you keep track of important dates for repairs and maintenance. You can set simple reminders to remind yourself (and your team) of upcoming repairs, warranty expirations, and more. You can also record important historical info about assets, such as past repairs, asset condition, and expiration dates. 

2. extending the life of assets through inventory management.

So planning and monitoring maintenance activities is an important benefit of inventory management. But there are other ways inventory management can help you do this. Asset life can also be extended by knowing where your assets are, what condition they're in, and - if they're broken or mishandled - who was last responsible for them. By making sure your stuff lasts longer,you save time, money and hassle. You'll also reduce waste by making sure your equipment and technology works for as long as possible. This helps make your business more environmentally friendly and sustainable. 

3. simplification of inventory controls and audits

Most companies also have to check inventories regularly for legal reasons, which can often be quite costly if not done systematically. Fortunately, an easierI venture is one of the main benefits of inventory management. Continuous management of your inventory will help your team with these reviews, since all the information they need is already available. For example, if you use an inventory management app, you can create reports that show you what items you have, where they are, how many are present, and so on. Then compare your physical inventory to the information in your software, and you're almost done. The faster you can do your inventory, the sooner you can address problems you discover along the way (such as over- or under-ordering, or even identifying ghost assets). And if you continuously manage your inventory throughout the year, you'll find that there aren't too many problems overall.  

4. overview of important documentation

 When you purchase new machinery, equipment or new hardware, you usually get a lot of documentation to go with it. These documents can include instructions, safety instructions or maintenance notes - and they often get lost, damaged or filed unsystematically. With inventory management software, you can upload these documents directly to an asset's profile, making it centrally available. Images can also be stored there so that everyone in the company can access them at any time. 

5. all asset information at a glance

Your assets are valuable - and it's not just about the documentation that comes with those assets. One benefit of inventory management is that you always have access to the information that will help you sell assets, document impairments, or better understand how to use your assets. Here are some things you can record in each asset's profile:


- Important documents from the manufacturer

- Important internal documents for handling,using or maintaining an asset

- Maintenance reports

- Audit results

- Reports of damage to an object

- History, where and when the asset was located

- History of who used the asset and when 

If you use inventory management software, some of this information - including user history and asset history - can be generated automatically! 

6. improvement of accounting processes

Well-organized inventory management not only influences your operating processes, but also has a positive impact on your accounting processes. Systematic information about your assets plays a crucial role in the preparation of financial reports, the calculation of depreciation and the preparation of company balance sheets. This is where the power of a functioning inventory management comes into play: it makes these tasks much easier by providing you with clear information at all times through accurate tracking of your assets. You know exactly what you own, where those items are located, how much they're worth, and what condition they're in. This accurate data allows your accounting department to create more accurate financial reports and calculate depreciation and the value of your assets more accurately. This not only makes financial processes more efficient, but also improves the overall accuracy of your accounting.

7. higher transparency through inventory management

Whether your business is small or large, having a solid system in place to manage your inventory makes it much easier for everyone to keep track of the assets in the company. This is especially important if your team works in different locations, or if there are so many employees that it becomes difficult to check on everything in person. The right inventory management software can make keeping track even better by providing a clear, visual representation of everything your company owns without requiring employees to leave their desks to search for assets. With My SAM , you can upload high-resolution images of your assets and sort them by location. This way, you always know what things are where, when, and in what condition.

8. increase productivity through inventory management

One of the main benefits of inventory management? Getting things done faster. Once the system is set up in your company and all employees are familiar with the standard instructions, you'll realize how much time it actually saves your organization. This is especially noticeable when you decide to monitor assets using software with automated features. Features like barcode and QR code scanning, customized notifications, and comprehensive reports can speed up a variety of mundane, time-consuming tasks while helping you keep track of your most valuable assets.

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