Inventory management is central to getting the results you need from your ERP. At the same time, your ERP helps provide the good inventory management you need.
- Planning Replenishment Orders
Inventory management allows us to properly plan replenishment orders. Our inventory quantity must be accurate so when the signal to buy or make more is received; we have confidence that we need to take action. ERP inventory management system allows us 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. Another item is ordered when at a lower cost and easily procured. Our goal here is to make fewer transaction so that we order enough to cater the demand. Hence optimizing inventory means fewer transactions and that leads to better inventory accuracy.
- Surplus Inventory Management
You can quickly see and react to surplus inventory. Whether the surplus is caused by a decrease in some demand or you learn that the economy of a good buy wasn’t so economical, your ERP inventory management system will spotlight the surplus immediately. This leads our capital to be bound in the inventory instead of earning money.
- Inventory Turnover Tracking
You can track turnover of inventory by segments and not just overall. ERP inventory management systems allow you to categorize your inventory in many ways and to analyze whether your inventory assumptions are true.
- Business Savings
You save time and money through better inventory organization using your ERP inventory management software. Better organization can lead to improved customer satisfaction. Organization might mean moving your items with the most transactions to locations at the front of the stock room and near each other. It could mean combining the parts used for a particular order in nearby bins. ERP is easily used to improve inventory organization and the results can be much improved efficiency and better productivity in your stock room. Your employee satisfaction goes up and your profits right along with it.