Ventures excelling at inventory management steer maximum revenues along with customer satisfaction from minimal stock investment. Those proficient businesses screen that successfully controlling inventory is all about data of warehousing, shipping, purchases, reorders, customer satisfaction, receiving, storage, stock turnover, loss prevention, and so on. This information mostly is obtainable readily from inventory management systems. Businesses, integrating their ERP solutions with the functionality of inventory management secure a competitive edge.
Definition of inventory management of ERP
ERP inventory management is considered a system that lets ventures administer all elements of their business on a consolidated platform that consists of finance, inventory, operations, logistics, and planning.
Inventory management of ERP software solutions offers real-time information about inventory to the whole company. The businesses that are planning for expansion have complex supply chains or workflows, function in a “just in time” approach, sell several products, require advanced automation, or simply desire to escalate their inventory investment, denote it a crucial capability.
Benefits of ERP inventory management
ERP draws on various data sources for assisting businesses in better perceiving the performance history of several stock-keeping units (SKUs), among other insights. This data is utilized by the company for making more informed ordering decisions and creating more accurate forecasts for gratifying future demand, without leading to excess stock.
It also escalates proficiencies throughout the supply chain. As a consolidated system, it can reduce double-handling of goods as well as automate daily activities such as reordering.
Here are some other vital advantages of integrating ERP solutions into inventory management.
Improvised reporting- Proper data about inventory confirms decision-makers to endure full benefits of data-driven insights, like comprehending effective SKUs, landed COGS (cost of goods sold), and sales by channel and location. ERPs ensure custom reports, thus, usable and accurate data, without being time-taking.
Transparency of supply chain- If a venture can incorporate back-end systems proficiently and directly interact with its partners, it reduces disruptive surprises, such as a crucial element not being provided when anticipated or being priced higher than makes sense for the product. Integrated ERP business software solutions permit shipping information as well as syncing orders.
More accurate counts- ERP monitors and reports planned replenishment, surplus inventory, shortage, outmoded inventory, and metrics like COGS and average rate of turnover. The system in the warehouse monitors as well as reports on transfers of products through receiving and shipping.
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Quality checks- ERP systems mostly have logic that you can utilize for the specification of inventory quality checks. For instance, when products must follow safety or environmental standards, you can indicate those and the system can check for product safety information. When the system points out the item may be out of compliance, the staff will be notified by it for an update.
End-to-end inventory analysis- Analytics are provided by ERPs for every stage of inventory flow, like the cost of sold goods, turnover rates, and shrinkage. To analyze core inventory metrics, ventures can boost inventory proficiency.
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Cycle counting- ERP can assist in guiding staff via a well-structured and thoughtful cycle count process. The integration of regular cycle counting into your warehouse operations acts as a crucial means of balances and checks, improving inventory records.
Inventory planning- Every product endures an inventory status listed in the ERP, enduring partners, staff, and customers for checking accessibility and numbers on hand, and order. Securing your inventory history along with metrics available without much of a stretch facilitates planning and scales up customer satisfaction.
Ventures with disparate and disconnected systems skip on vital insights of inventory that can assist them in preceding their businesses more proficiently. With robust ERP solutions kolkata integrating productive inventory management capabilities can bring transformation in inventory management to a competitive differentiator from a standard process.
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