Inventory management software allows you to track all of your inventory items in real time. That way, you can actually enforce a strict fulfillment strategy—whether it’s first in, first out (FIFO), last in, first out (LIFO), or first expired, first out (FEFO).
With a FIFO system, your inventory management software can help your warehouse staff identify the oldest items on your shelf and sell those first, which ensures your product stays fresh (and is therefore more sellable). That reduces the chance of your inventory becoming a loss down the road.
With a LIFO system, you can ensure that the newest items on your shelf are sold first. That way, only the oldest products run the risk of becoming obsolete. This reduces loss for your business, since older products are (theoretically) worth less than your newest items.
Also, if your business runs a FEFO system with perishable inventory, inventory management software can save you money by making sure the items with the earliest expiration date get sold or used first. In restaurants, for example, this reduces the financial losses your business incurs by investing in products that go bad before they’re sold.