6 benefits of an ERP inventory management system
Why worry about the benefits of an ERP inventory management system?
Well, for starters, those companies that get inventory management right are likely to maximise profits and boost customer satisfaction – all while using minimal stock investment.
In the cut-throat world of manufacturing, this can be the difference between success and failure.
One of the biggest boosts to your inventory management processes can come from harnessing data. Crunching numbers related to purchasing, reorders, customer satisfaction, stock, the storage of stock and warehouse management all contribute to powerful efficiencies that will improve your bottom line.
If you want to get to grips with this information and harness it to improve your inventory management, an ERP system is the choice businesses typically make, allowing departments to share and disseminate information seamlessly.
With this in mind, here are 6 benefits of an ERP inventory management system.
How does an ERP inventory management system benefit your business?
In many ways, but primarily through the collection of data from around your business that can be used to help understand your operations and improve them.
By collecting and analysing data, you can begin to make more informed decisions about everything from ordering to forecasting demand and meeting customer expectations without holding onto unwanted stock.
Your ERP system will also produce efficiencies around the wider supply chain. By automating routine tasks, such as reordering when supplies reach a critical threshold, your business can begin to free up staff time that would be spent inputting information multiple times. Instead, staff can use their time to get on with what matters to you.
Here are 6 benefits of an ERP inventory management system.
Supply chain visibility
Many businesses are seriously inhibited by surprise disruptions. Of course, you cannot prepare for each unexpected event individually (that’s the nature surprise…) but you can get better transparency of supply chains.
With the use of ERP, you can integrate your back-end systems more effectively and communicate more closely with partners at both ends of the supply chain. This reduces the likelihood of integral parts being missed from your order or unexpected pricing variations.
By choosing an ERP system, you’ll have better control of one of your core business challenges.
Improved inventory data allows staff to be more proactive in their decision making, relying on comprehensive datasets instead of gut-instinct (or worse, responding to problems once they have already arisen).
The use of custom reports that your ERP system offers will provide you with a better understanding of a range of inventory insights, including sales by location, channel and landed cost of goods (COGS) without relatively little investment of time.
Increased count accuracy
One benefit of an ERP inventory management system is the improved count accuracy. Your system will automatically report any excess inventory levels, tell you when levels are running low and also notify you of any planned replenishment.
End to end inventory analysis
Your ERP inventory management system offers analysis of each stage of your inventory flow, from cost of goods sold to turnover rates. By dissecting these key metrics, your company can begin to make small but powerful efficiencies that typically boost your bottom line.
Automated quality checks
You can typically apply logic that can specify inventory quality check with your ERP system.
This means that, for example, if your business produces items that must comply with environmental or industry safety standards, these can be specified, and the system will carry out the checks. If the system detects that the item is not compliant, the necessary staff will be notified.
Inventory planning and ERP inventory management systems
Workers can check the inventory status of any item or part and make interventions when necessary. This also allows for better visibility of inventory levels, improving customer satisfaction by reducing the likelihood of orders being made on products that are already out of stock.
These are just some of the potential benefits of an ERP inventory management system. If you want to learn about these benefits and more in detail, please contact one of our ERP professionals by clicking here.