Boost your profitability through automotive inventory software

January 7, 2023

Since Nicholas-Joseph Cugnot invented the first motor-powered automotive vehicle in 1886, life has become more comfortable than it was, with major businesses revolving around automotive inventory management and ensuring vehicles work. Now, it's hard to imagine the world without cars, buses, trains and other moving vehicles, from one place to another – and it appears the habit isn't going to change any time soon. Interestingly, many businesses who want to offer superior service to their customers struggle to keep their automotive inventory organized. This is where automotive inventory software comes in. But what is automotive inventory software, and what difference can it make to your business?

What is automotive inventory?

Before getting into the specifics of automotive inventory software, it's important to highlight what automotive inventory means, considering it's the major driving force behind automotive inventory management. It's common knowledge that an automotive shop cannot function efficiently without having an inventory – new or used cars – to sell to customers. The kept components are always maintained so as to keep them in good condition and serviceable. This means that managing a good inventory is not a one-day affair. Maintaining inventory also helps auto shops sleep with their two eyes closed because it reduces the stress associated with knowing what is there and what is not there as far as inventory is concerned. For a car parts shop, proper inventory management also helps to reduce lost products and misplaced car parts, which could result in losses. All in all, having inventory means moving forward. It's important to manage it though so as to make the most out of it.

Why do you need automotive inventory management software?

When you have hundreds or thousands of car parts to handle, things can get quite dicey, particularly if you're trying to run things manually via a pen and paper. Not only is such practice not modern, but also ineffective. As your inventory increases, keeping track of the parts, how many are in stock, and which ones need to be sold out could get challenging, leading to human errors, which may make the decision wrong. So, you need automotive inventory management software. This saves you the stress of manually keeping track of your inventory as it does everything for you.

How automotive inventory management software works

Automotive inventory software makes life easier by streamlining every aspect of automotive inventory management. This spans from demand planning, which sorts out how much stock you need, to warehouse management, where parts are stored and monitored.

1. Demand planning

   Knowing how much of a part your customers would want is of utmost importance in running an inventory without running into losses, or having too much stock. If you don't take your customers' demand into consideration when commanding new inventory, it's easy to overstock, or understock. Automotive inventory management software, therefore, uses algorithms to analyze the patterns of consumer demand and determine what would be ideal for an automotive shop, considering the number of cars driven, how often they're maintained and a tract of the period in between. This ensures the right quantity is kept so you don't end up with a storeroom filled with car parts that no one is buying, or no storeroom at all because you never restock.

2. Warehouse management

   Keeping track of every part in a warehouse, checking how many there are and the latest movement, could be quite the task because warehouses are filled with thousands of things. But an automotive inventory management software helps keep track of every part, including its location, and how many are in stock. It even helps inform about which one is almost sold out or how many of such a part should be ordered. Furthermore, automotive inventory management software helps track parts' movement in the warehouse so as to know how things are moving in and out the storeroom. This prevents chances of parts being left out or misplaced.

Benefits of automotive inventory management software

Beyond keeping track of what's moving in and out of the storeroom, automotive inventory management software offers more than you'd think.

These are:

• Supplier management
  A great automotive software capable of handling a medium to large inventory should have the ability to handle as many suppliers as possible. Your software, whether it's AI-powered or not, should be able to maintain good relationships with every supplier whose stock you command for inventory planning. This helps you keep track of the suppliers who are faster with getting you supplies, and more reliable in their system of service delivery.

• Order fulfillment
  Completeness of order and swiftness of delivery are important parts of automotive inventory management. A great automotive software meant to serve customers will be sure to deliver fulfilled orders in the time it is expected. Good order fulfillment is what keeps customers coming back for more, but on the other hand, mishandled orders keep customers away. With an automotive inventory management software, you will always know when an order comes in and when it's being consigned to the recipient. Hence, helping you manage all processes more efficiently.

• Inventory alerts and reports
  With automotive inventory management software, you will be notified via reports and alerts when there's an inventory situation that should concern you. For example, you will know when parts are running low, when deals are being made on certain parts that come fast, and how much of a part you're carrying. Alerts also let you know when things have moved into the warehouse after purchase, when things are shared and how all warehouse management is going.

Is automotive inventory management software right for you?

If maintaining your inventory feels like a battle that needs another war to defeat, then it's time to consider automotive inventory management software. This software makes inventory management easier and makes your business more competitive in the market.