Managing inventory is a tricky business. It’s not just about known which stock is stored where, but also the processes to optimize your warehouse to ensure it’s balanced correctly with the outflow.
Maintaining the right levels of goods and stock depends on various factors such as customer requirements, accurate forecasts about availability of goods and other requisites. Improper management wastes money in both material and labor investment. An efficient ERP system tracks and maintains every small detail related to sales and purchase orders along with providing users with real-time visibility of your inventory. This enables businesses to analyze customers’ buying behavior and accordingly plan stocks for their warehouse.
Here are the four ways how ERP helps you in optimizing inventory level.
Overall Inventory Control
Every warehouse establishment needs to keep track of the items that are moving out fast and goods that is slow moving so that the purchases can be accordingly planned. An ERP software streamlines all inventory activities and provides a real-time view of the operations under one platform. You can use the software solution to manage stock levels, regardless of the size of the establishment or amount of inventory. Besides bringing stock optimization through effective replenishment planning and inventory control, ERP software are also capable of generating inventory analysis reports, which helps businesses in making better decisions to ensure availability of required stock, reduce expenses and increase profits.
Improve Stock Administration
Stock administration includes tracking product shelf life, proper allocation of bin corresponding to the variety of categories, knowing the cost of goods as and when they are brought in or discharged from the warehouse, and monitoring the problems related to stock. Only an advanced ERP system guarantees strong control on all these aspects.
ERP solutions provide multiple ways to classify and group products in the inventory. With the help of its easy-to-use UI, you can easily tag and classify items, get details of each product stored, use multiple units to measure, manage valuation methods, set allocation methods, identify standard supplier, track various costs, and find substitutes for an item. These features enable the ERP application to provide end-to-end real-time visibility with effective analysis and control required to optimize inventory management and eliminate stocking of expired goods. It also helps to maintain balances between availability of stock with sales needs and get a decision-making basis for organizations to acquire new inventory.
Total Warehouse Management
ERP systems automate and manage all warehouse operations starting right from the entry of till they reach the suppliers or customers. The centralized systems aid in managing multiple activities such as bin allocation, inter-store stock transfer, stock adjustment, and shipment. They also allow users to access bin locations to determine the exact position of the product and provide complete information about the stock movement status.
With these smart warehouse managing techniques, you can easily co-ordinate between goods movement, gain speed and visibility across the organization’s supply chain, and respond faster to the customer request.
Remove Quality Concerns
ERP solutions offers an easy way to keep an eye on the quality of items in your inventory. The tool enables users to define quality inspection plans for items based on certain checklists and ensures that the stock entering the testing phase is thoroughly examined for any signs of damages, discrepancies in the product information, or any other faults along with storing the detailed feedback of the process and items with their test results. Thus, ERP systems not only eliminate unnecessary stock handling, but also empower businesses to provide superior customer service by delivering quality goods to them, as promised.
Having an optimized inventory allows businesses to deliver products on time and avoid wastage of items due to the passing of expiry dates or any other defects. ERP systems by Focus Softnet offer a superior solution to avoid all inventory pitfalls in your establishment. These applications ensure that the right stock is available at the right location and at right time to meet the demands of customers and suppliers. This optimization in inventory level increases productivity, which empowers businesses to drive home greater revenues.
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