If you are a business that holds inventory to supply customers, you are always seeking more effective inventory management systems to reduce your bottom line and provide you with a competitive edge. Often times businesses run into the problem of having inventory that is out of balance, either due to running out of stock on key items or having an excess of stock that does not leave the warehouse floor. It can be incredibly frustrating when, despite your best efforts, nothing you do appears to resolve these two problems. Both impact your cash flow and financial success. One way to mitigate these problems is by implementing an innovative cloud-based ERP solution. Here are a few ways in which the right ERP system can help you balance your inventory and business.
Tracking
The best way to keep track of your inventory is via one centralised system that operates across your entire business. The right ERP solution will track inventory levels throughout your business, irrespective of the number of facilities you have. This sort of tracking solution empowers your business to have an accurate account of what stock is where. This means your business can still close the sale by delivering your products from wherever they are available. Your sales team will additionally be empowered by the ability to track expenses and profits related to inventory sales from one accessible, centralised system.
Inventory Control
Regardless of the size of your business, the right ERP system can optimise all control processes. You can easily automate product and material orders based on accurate counts of current inventory and inventory analysis reports. With the inherent integration into your organisation, you will be able to track availability and expenses over time to compare costs and see where you can reduce your bottom line. Expense management becomes an easy task when you are able to oversee pricing on your products and materials.
An ERP system will also allow you to properly plan replenishment orders. ERP inventory management system allows you to categorise parts so you can order the right quantity only when there is a specific demand. By optimising the replenishment process your business has fewer transactions and this leads to better inventory accuracy.
Surplus Inventory Management
Surplus inventory can be devastating to businesses, especially if even discounting the stock doesn’t move the product. With an effective ERP system, you can track surplus inventory in real-time affording you the opportunity to react quicker. The sooner you can identify an issue, the sooner you can make actionable decisions around it.
Data Collection & Reporting
As all your data, from inventory levels to purchasing to accounting, is captured in real-time on one centralised system you can be sure that your reporting will be accurate. This real-time visibility enables your staff to maintain optimum inventory levels based on actual demand. It takes the guessing out of ordering supplies. To keep up with the fast pace of doing business, you need to rely on accurate reporting to make strategic decisions and forecasting.
Shipping and Logistics
An integral part of any inventory-based business is the supply chain and management thereof. With the automation functionality in a cloud-based ERP system the entire supply chain is streamlined. You can record every part of the supply chain from procurement of raw materials, to transport and storage, to delivery to the end customer. Beyond this you can record the time and associated costs with each stage. Ultimately, ERP automation saves you time and expenses while increasing efficiency of your resources and maximizing staff time.
The investment of a modern ERP system is an essential tool to streamline your inventory process and make sure your business is balanced. No matter the size of your operations, effective ERP implementation can optimise your processes and reduce your bottom line. Get in touch with Lorge today to find out the best business management solution for your business.
