Five ways ERP Software enhances Inventory Management
Is your inventory management system out of control? Worry not, because the modern ERP system has solutions for all your business-related issues. By implementing the latest ERP system and investing in a reliable inventory management system, you can ensure that your inventory is handled very well without involving a lot of employees. You can complete jobs, and deliver orders on time, preventing production bottlenecks, thereby maintaining customer satisfaction.
Inventory Management – An Overview
Inventory management is the charge for managing supplies and inventory. It contains components such as supervising and controlling inventory procurement, storage, and stocking to reduce holding costs.
Without an effective inventory management system, you may be encountering stock emergencies frequently, which can result in a shortage of raw materials to satisfy production demands. This can result in time and financial losses, customer loss, and harm to your reputation. By effectively managing your inventory, you can prevent such occurrences and ensure that your shop operates efficiently.
Management of Inventory with the help of Modern ERP Solution:
As a custom manufacturer, it is very important to use an ERP system for smooth inventory management. You will be able to consolidate, organize, and optimise your organisation by managing your entire operation from a single system.
The inventory management module of an ERP will typically encompass the following features, even though no two ERPs are identical:
- Stock monitoring and administration
- Management of purchasing orders and sales
- Order fulfillment through multiple channels
- Stock transfers and storage management
- Functionality of the payment gateway
- eCommerce, accounting, transportation, and other operational tools are integrated.
- Analytics and intelligence reports
Advantages of Implementing ERP Inventory Management:
ERP inventory management provides a lot of benefits to your organisation. Some of them are listed below:
1. Inventory Monitoring:
The management of stocks is primarily concerned with the identification of the inventory that is currently housed on the shelves. But an inventory management system solely is incapable of optimising your inventory effectively unless it is integrated with the other functions of your organisation.
A modern ERP system facilitates inventory monitoring throughout your organisation by integrating it with the rest of your operations. It facilitates the smooth run of all operations. An ERP system provides your staff with immediate access to a centralised inventory record that is updated in real-time. This allows you as a manager to be aware of the raw materials you have on hand, the orders you can or cannot fulfill, and the accuracy of the information in the database. This not only enhances the efficiency of production but also simplifies financial reporting and business analysis.
2. Automation of Tasks:
An ERP system can save you both time and money by eliminating the tedious tasks of inventory handling. Bid farewell to the tedious process of manually updating records and enjoy getting real-time inventory updates. This feature will allow you to invest more time to other important aspects of your manufacturing business.
Human error is eliminated and the associated complications are circumvented by an automated inventory management system. Also, your dashboards will provide you with a comprehensive view of your inventory, thereby enhancing your operational visibility. Additionally, an ERP system ensures that nearly all processes are automated, including the maintenance of suppliers’ contact information. This provides you with increased confidence and the opportunity to complete the task thoroughly.
3. Optimise Business Operations:
A manufacturer’s overall efficacy can be enhanced through the implementation of precise inventory management. Instead of, for instance, endeavoring to locate a specific stock item, employees may allocate their time to other duties. One example of how an ERP system can be used to facilitate proper production planning is by automatically monitoring the inventory used on each project. This will help you know the exact quantity of raw materials needed on hand and the items that need to be ordered to complete a job. You will also know the exact number of items in the inventory.
4. Forecasting, Restocking, and Managing Excess Inventory:
To ensure that your inventory levels are appropriate for your business requirements, an ERP system monitors sales, purchasing, and logistics. With an ERP, you can leverage an inventory management system that is in alignment with the rest of your operation. This simplifies the management of long-lead items, as you can be aware of them during the design phase of a project and have additional lead time to order and guarantee their timely delivery.
The ability to monitor real-time stock levels also simplifies the process of replenishing inventory. An ERP can either automatically reorder materials for you or send a timely reminder to your purchasing manager to inform her that items require reordering. Without having an ERP system that alerts manufacturers to the need to replenish inventory, they may incur substantial expenses when they urgently require stock.
Additionally, the ability of an ERP solution to monitor surplus inventory in real-time may provide the opportunity to return it, rather than occupying shelf space that could be better utilized for other purposes.
- ERP Systems Reduce Costs:
It is universally recognised by business owners that cost savings are equivalent to efficacy. By employing an ERP system for inventory management, you can reduce your overall burden and minimise expenses by managing multiple aspects of your business without the need to purchase separate systems. Enhanced inventory management also increases the number of tasks distributed.
ERP inventory management systems are intended to minimise manual labor by automating and refining procedures, a practice that is inextricably linked to business expansion. Additionally, ERP systems enable the collection of superior-quality data, which provides valuable insights into your business that can be used to monitor its performance and develop growth strategies.
Conclusion:
The implementation of ERP software for inventory management can guarantee the ongoing prosperity and expansion of your organisation. If you are in search of a reputable and trusted ERP development company to create custom ERP software solutions for you, please contact our team at CherryBerry ERP. We are a premier ERP development company with over 20 years of unparalleled industry experience and are capable of meeting all of your business requirements.