The Rising Importance of Cloud-Based Inventory Management

The Rising Importance of Cloud-Based Inventory Management

Inventory management is a crucial yet unappreciated business process. Get it right, and no one notices.  Mess it up, and you could end up with a situation on your hands like Toys “R” Us back in 2017. Huge overstocking problems and increased competition from online retailers led to its demise, and the company filed for bankruptcy.

Stock management is a tedious and time-consuming task—especially if you’re conducting the process manually. Smart businesses are avoiding these expensive errors by choosing cloud-based inventory management. Let’s see why.

Why Cloud-based Inventory Management

Coming up are six reasons to choose cloud-based inventory management:

It Improves Real-time Data

A cloud-based solution has one big advantage: you can access your business’s data in real time. For instance, you can seamlessly integrate your inventory management processes into a centralized platform accessible from anywhere at any time. With a cloud based ERP (Enterprise Resource Planning) system, you have instant access to real-time information about your inventory levels, stock movements, demand patterns, and detailed analysis.

Having real-time visibility into your inventory data is incredibly valuable. It empowers you with the information and insights you need to make informed decisions, optimize your inventory levels, and respond quickly to market changes.

For example, if you notice a particular product is experiencing high demand, you can quickly adjust your inventory levels to meet that demand. This will prevent stockouts and maximize sales opportunities. On the other hand, if you identify slow-moving items, you can take proactive measures such as running promotions or adjusting pricing to prevent excess inventory and potential losses.

Harness these insights to implement more efficient inventory management strategies, improve order fulfillment processes, and enhance overall business-wide efficiency.

It Improves Real-time Data - DSers
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It’s Cost-efficient

In addition to making rapid inventory changes when necessary, cloud-based inventory management offers several cost-efficient business benefits. Using cloud infrastructure eliminates the need for on-premises hardware and infrastructure investments.

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Cloud-based solutions often operate on a subscription or pay-as-you-go model, so you have no upfront costs or expensive hardware to worry about. You also have the flexibility to scale resources when you need to.

With cloud-based inventory management comes fewer errors. By reducing inventory errors, you can avoid unnecessary costs. Excessive stock levels tie up capital, incur storage costs, and increase the risk of obsolescence. Stockouts can result in lost sales opportunities, decreased customer satisfaction, and potential damage to the business's reputation.

Both of these situations are disastrous and are to be avoided at all costs.

It Reduces Inventory Errors

Inventory errors are costly. And significantly impact your business’s financial performance and customer satisfaction levels.

It Reduces Inventory Errors - DSers
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One of the key ways cloud-based inventory management reduces inventory errors is through the automation of processes. Automated workflows reduce the need for manual data entry, which is prone to human errors. Updating inventory levels, order processing, and data synchronization automatically minimizes the risk of inaccuracies caused by human intervention.

This ensures that inventory records remain accurate and up-to-date, improving inventory control and reducing the chances of errors.

Barcode scanning is another valuable feature offered by cloud-based inventory management systems. You can accurately track and record inventory movement by using barcode scanning technology. Scanning barcodes during receiving, picking, and shipping processes eliminates the reliance on manual data entry and significantly reduces the chances of errors.  

Barcode scanning makes sure that the correct items are received, picked, and shipped, which reduces the likelihood of order discrepancies.

It Streamlines Operations

Cloud-based inventory management and ERP in e-commerce provide a unified platform to handle tasks such as order management, procurement, and warehouse management. This eliminates the need for disparate systems or manual processes.

Tailored inventory software also provides precautionary measures to monitor stock levels. For example, you can set triggers for when SKUs are running low to consistently meet customer demand.

Deploy auto-update order status measures to keep track of the status of each order. So you know if specific orders are placed or shipped. Smart dropshipping technology means you can automatically see new orders as they appear for complete operations' visibility.

When you streamline your operations, you can improve productivity, reduce inefficiencies, and simplify workflows. The automation and integration capabilities of cloud-based solutions enable smoother inventory management processes—leading to time savings and improved operational efficiency.

It Improves Customer Service

The importance of customer service in today's highly competitive business landscape cannot be overstated. Unhappy customers waiting for orders are a fast way to a business disaster.

Implementing cloud-based inventory management improves customer service by enabling your business to fulfill orders promptly. With real-time visibility into inventory levels, you make sure that products are available and ready to be shipped when an order is placed.

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By avoiding stockouts, you can prevent delays in order fulfillment, minimizing the risk of customer dissatisfaction and lost sales. Accurate inventory information also gives you the data to provide customers with accurate and reliable delivery estimates. This helps you to manage customer expectations effectively to reduce uncertainty and enhance trust in your company’s ability to deliver on time.

These transparent measures all result in positive customer experiences, increased satisfaction, and loyalty. Not to mention repeat business.

It Helps with Disaster Recovery

One significant advantage of cloud-based inventory management is its inherent disaster recovery capabilities.

By storing data securely in the cloud, your business can effectively protect your inventory-related information from potential physical disasters or system failures. Cloud providers have robust backup systems and data redundancy measures in place, ensuring the integrity and availability of data—even in challenging circumstances.

It Improves Customer Service - DSers
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In the unfortunate event of a disaster, such as a natural calamity or infrastructure failure, you can recover inventory data and resume operations swiftly. This minimizes downtime, mitigates potential losses, and helps maintain business continuity. Ensuring that inventory management processes can resume without significant disruption.

Cloud-based inventory management serves as a reliable safety net, providing peace of mind and the ability to swiftly recover from unforeseen events.

Is Cloud-based Inventory Management Worth It

You may already have an inventory management system of sorts. But if it’s not fit for purpose, and your company is making multiple inventory errors, the real question is: can you not afford to invest?

Cloud-based inventory management empowers your business to automate tasks and enables employees to focus on strategic and higher-value work. The flexibility of accessing data from any device, regardless of location, can significantly enhance company-wide productivity rates.

Because cloud-based inventory management systems are subscription-based models, there's a solution to fit any business, regardless of size or budget.

When considering the scalability, cost savings, efficiency gains, data-driven decision-making, and robust security measures, it becomes clear that cloud-based inventory management is a worthwhile investment.

Businesses committed to optimizing their inventory operations and gaining a competitive edge recognize the value of investing in cloud-based inventory management. By making this investment, you position your business for long-term success, improved operational efficiency, and increased customer satisfaction.


In the swiftly moving e-commerce world, the role of cloud-based ERP software for efficient inventory management has become more crucial than ever.  

Due to the ever-increasing volume of online sales, businesses require robust ERP systems tailored specifically for the unique challenges of managing inventory in the digital space. Using a cloud-based ERP system for online selling helps you smoothly connect your online stores, process orders, keep track of inventory, and handle customer relationships.

These capabilities are instrumental in driving growth and achieving success in the fiercely competitive online marketplace.

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