In the past, inventory management was done using pen and paper. There were once huge file cabinets that had thousands of compartments and could be found all over the company's premises. The filing was a time-consuming and complex process because employees had to arrange the files according to different categories (Issue Date, Department, Managers, Priority Status, etc. This is what it looks like. Another headache was also present. Some files must be moved or thrown away if the cabinet's capacity is exceeded.
Inefficiency and error-prone business processes have been halted by this inefficiency. ERP and automation solutions are to be credited for solving both critical and routine business problems. These solutions were able to solve the problems and provide mobility and accuracy for the companies.
Different ERP solutions may have different features and specifications. A good ERP solution for inventory will provide minimal benefit to your company. We will discuss these aspects and offer valuable tips for managing your inventory.
ERP Solutions Better Inventory Management
Stop Inaccurate and Repeated Data Entry
An ERP system eliminates the need to enter data at each point in the business chain. Let's take a look at it. If everything is done manually, the employee in charge of the stockpile must count and take down the products.
It will then be given to the data team for them to enter these numbers in an office suite. If the managers use a specific solution to analyze the data patterns, they will need to upload it again from their point.
This cumbersome process can lead to data inaccuracies. This problem can be solved by an ERP solution. It will integrate multi-layer software that supports your business, so you don't have to manually input inventory data at each point.
Track your Products Effortlessly
Inventory management is complicated because product tracking is a key component. Inventory managers and business owners are responsible for every movement in the stockpile. Stock-keeping units can be hundreds in many businesses.
These products come in a variety of sizes and shapes. Some can come in bottles while others are solid baked goods. These properties will affect the distribution module.
An ERP can help you avoid a lot of problems given the circumstances. An ERP can track the movements of all your products from a single dashboard.
Better Forecasting using Historical Data
One of the most valuable business assets is the continuous storage of data. This data allows you to identify patterns and trends in your product inventory. You can then make a data-driven decision about each product SKU that is stored in your inventory. You can, for example, study historical data to determine seasonal demand and plan future strategies.
Premium ERP solutions often include an analytics dashboard that includes forecasting capabilities. You can also export data to.csv format so you can create your own forecasting models using Microsoft Excel and other statistical software.
Coordinate Sourcing with Sales
The most difficult aspect of inventory management is making decisions about goods sourcing and selling. You must find a balance between the two, or you will lose your profitability. You need to be able to afford to keep a certain amount of products in your inventory at a given time. You might lose sales or end up with obsolete inventory if there is a mismatch. These are not good options for businesspeople.
Incorporate your Accounting Module in Real-Time
An ERP system that integrates the inventory system and the accounting module should be solid. This is the most important benefit: whenever there is movement in the stockpile it will reflect directly in your accounting module. This will allow you to have a better understanding of your value chain and make informed decisions about your business.
Tech companies are increasingly interested in real-time solutions due to the rapid internet speed and data transfer. This allows employees to work remotely and increases mobility in an organization.
Use the Right ERP Solutions to Manage Your Inventory Efficiently
These are just a few of the many areas an ERP solution can help you with. As a business owner/manager, you should be discerning when making a decision. You can approach ERP adaptation in your company in a number of ways.
These factors include financial budget, human resources, organizational culture, business processes, infrastructure, and financial budget. True, it varies from one organization to the next. However, there are smart questions you can ask regardless of whether your company is involved in inventory management.
Which type of inventory reporting system do you use? Is it able to provide real-time actionable data?
How your vendor/provider manages order management.
How much do you pay for your average daily obsolete stock?
How do you eliminate obsolete/bad inventory?
Have you developed a system to forecast demand/inventory requirements at a specific time?
How can you adjust your stock quantity and storage capacity?
Does the process for maintaining the security of inventory management data and processes exist?
Take your time answering these questions. Then, make your decision based on what you have learned. This will allow you to achieve operational excellence and profitability in your company.
Check out our inventory module, a free and unrestricted ERP for WordPress. We understand what inventory management is all about and have created it to meet all of your requirements!