In this week, we talked about the inventory and warehouse management in ERP. During the project discussion we found out that inventory is the “bridge” between different business process. Inventory management is way more important than we used to think; it plays a crucial role in every business process.
ERP systems help manage inventory up and down the supply chain and enable profitability and provide the competitive edge needed to survive. Having an ERP system to help you with the inventory management will benefit your organization in a few ways:
- It provide the Real-Time Data
ERP inventory modules can help enable the controls that lead to accurate knowledge of inventory for every SKU. When a customer asks for availability, the ERP provides in real time exactly what is on hand and when the next incoming delivery is expected and nets that quantity against existing customer orders. Delivering on promises leads to satisfied customers.
2. It helps with Planning Replenishment Orders
Inventory management allows you to properly plan your replenishment orders. Your inventory quantity must be accurate so when the signal to buy or make more is received. Your ERP inventory management system allows you to categorize parts which helps easily order the right quantity. One item is ordered only when there is a specific demand in exactly the quantity to meet the demand.
3. It quickly reacts to Surplus Inventory
When surplus is caused by a decrease in some demand, your ERP inventory management system will spotlight the surplus immediately. There are options you have when the surplus is quickly found and reaction is immediate. Should you return the item? Can you contact the customer and ask for another order to use up the surplus? Delay might mean you move the surplus to the trash pile and disposition costs money instead of earning money.
Reference:
http://www.erpfocus.com/four-benefits-of-erp-inventory-management-2896.html
4 Benefits of ERP Inventory Management
http://www.erpfocus.com/erp-inventory-management-4-benefits-for-distributors-2690.html
ERP Inventory Management: 4 Benefits for Distributors