Enterprise Resources Planning manages all aspects of a company's inventory system. This includes receiving, tracking and storage, shipping, as well as turnover. It streamlines inventory management by allowing you to track orders and inventory levels at the point-of-sale.
ERP software automates inventory management. It is a comprehensive solution for all your inventory management requirements.
The Benefits Of Integrating ERP In Inventory Management
ERP is quickly consolidating its position in organizations. ERP integrates now with many operations not originally integrated into ERP. This allows for greater benefits. On average, ERP is used by 6.5% of companies.
Here are some of the benefits of integrating ERP in inventory management:
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Optimization of Inventory
There are many inventory problems. Simple slips can lead to problems.
It's a smart idea to keep older products in stock when the market changes. This is particularly important for products that change frequently. Loss can occur if there is an increase or decrease in demand.
Owners may find it difficult to sell large quantities of inventory.
Integrating ERP can help you optimize your E-commerce inventory. This tool provides real time insight into stock levels/stock control and future demand.
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Visibility of the Supply Chain
Complex supply chains involve many parties that supply goods and materials to companies. This process should be seamless and kept updated frequently. Although the task was initially performed by companies, it became difficult for them to do so.
Integration can be used for production planning. All production can be integrated with simple tools and precise details. These details can also be shared with logistics partners and suppliers.
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Precise Financial Reports
Most companies invest a large amount of capital in inventory. Financial reporting is dependent on inventory details. This information is crucial for revenue forecasting, tax returns and revenue forecasting.
Inaccurate inventory data can lead to financial problems in the future. By integrating ERP and inventory, every detail can be automatically updated and accounted for in the financial system.
Many ERP companies provide key features that automatically generate detailed reports. This can result in inaccurate financial reports and other financial activities.
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Improved Interface
Different departments may have different systems. Each department has its own interface, which employees need to learn. The ERP software offers a simplified interface for multiple operations. You can integrate them with effective inventory management to eliminate the need for additional interfaces.
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Higher Savings
Cost savings is the single benefit of integrating ERP and inventory. Inventory optimization can help you strike the right balance between supply and need, which will reduce the cost of expired products. Optimizing inventory data can help reduce errors and result in capital gains.
Cloud subscriptions for business apps are expected to generate $170 billion in revenues, according to estimates. Integration of ERP and inventory management processes can help you save money. You will see many benefits from integrating ERP and inventory management. It's easy.
What Functions Does Inventory Management ERP Software Perform?
An efficient inventory control system that is cost-effective can help you manage your supply chain and keep your costs under check.
These are the main functions of Inventory Management software:
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Simple Inventory Management
Inventory software makes managing your inventory easier, more efficient, and cheaper, and it can even be customized to suit your needs. You can automate key business processes to make better decisions, and inventory management solutions allow you to do this.
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Productivity and Efficiency Increase
This tool automates manual tasks, which can improve productivity and efficiency. This tool will help you to grow your business. It can efficiently manage safety stock, ship labels and process orders.
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Profitability Rises
Did you know that 33% of U.S. businesses miss shipping deadlines due to out-of-stock products?
The inventory management software keeps detailed records of marketing and production in order to maximize profitability and return on investment.
ERP automates key business operations. It makes it possible to efficiently and accurately complete critical tasks like updating listings across all channels, managing stock levels and processing orders. This can help reduce costs and increase profits.
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Quality Management
The ERP software can be used to track and even avoid problems such as lost or delayed shipments or damaged packages. Analytics can be used to identify quality factors.
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Forecasting and Planning
Accurate Inventory management software can help you identify potential locations for regional warehouses close to key customers. The inventory software provides insight that can help improve service and efficiency.
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Monitoring Serial Numbers
ERP software allows seamless tracking of serial numbers. From the time inventory is received to its issue, the software can track unlimited serial numbers. It also stores the data permanently in order to be accessible for future reference.
For business owners who want to increase their profits, inventory management software is essential.
Common Inventory Issues That An ERP System Can Solve
Problems can arise when a business does not have proper inventory management. Upgrade to Enterprise Resource Planning (ERP) to solve the most common inventory issues.
These problems can be avoided with an ERP inventory system:
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Stock Excess
43% of small U.S. companies don't keep track of inventory or use manual systems.
It is better to keep seasonal products in stock. Overstock can cause increased overhead and lower liquidity. Inventory shortages can occur if you forecast too conservatively.
In the U.S. it is in reality. Retailers have an average of $1.43 inventory per $1 in sales.
ERP inventory systems allow you to quickly analyze sales history and seasonal trends. This will allow you to create realistic safety margins in your business.
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Stock Shortages (Out Of Stock)
Inventory shortages can prove to be just as costly as excess inventory.
Low stock levels in peak selling periods can be a problem if your products are highly profitable or competitive.
ERP inventory software allows the setting of "par levels" (also called minimum inventory thresholds) for each product. These can be modified throughout the year.
The software immediately alerts you if a product's stock falls below the minimum level. When combined with the appropriate automation software, an ERP inventory software can automatically send purchase orders.
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Stock of Dead
The U.S. has a range from 20-30% for obsolete or dead inventory.
Also known as deadstock or on-hand, this is any product that hasn't been sold, is unused or forgotten about, and is not eligible for sale. Deadstock is bad for two reasons.
It is impossible to recover the original cost of goods sold.
If a product is not used, storage costs (warehousing) will increase.
ERP inventory systems allow you to keep track of every detail regarding the product's purchase and manufacturing, expiry, insolvency, and expiry. Even alerts can be sent when stock is low.
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Inventory Turnover
Inventory turnover can be used to determine when products should be reordered or remanufactured. Calculating your inventory manually takes a lot more time. 46% of SMBs do not keep inventory records or use a manual process. This includes tracking.
Count cycle
Order cycle
Delivery period
It can be time-consuming and lead to human error. This process can be automated to allow your business's operations to continue while you order and maintain goods. ERP consulting can make this process simple.
Read More: Why It's Time To Switch To ERP System For Your Business
Top 5 Inventory ERP Softwares to Manage Inventory Effectively
To help you reduce inventory issues, we have compiled a list.
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Batchmaster ERP
Batchmaster ERP provides process manufacturing ERP solutions to the pharmaceutical, chemical and nutraceutical industries.
Batchmaster ERP allows you to easily manage your manufacturing applications with Sage 100 & 300, Microsoft Dynamics, QuickBooks, G.P. and SAP Business One financials.
Upgrades to enterprise resource management (ERP), which streamlines the supply chain, CRM, financials and other functions, are also possible.
The price for the BatchMaster Process Manufacturing Application is $2,000 per user, which can be paid as a one-time fee. The company offers a free trial and a free version.
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Horizon ERP
Horizon ERP is an off-the-shelf, ready-to-use solution for small businesses. It effortlessly handles accounting, billing, inventory management, as well as other tasks for medium-sized companies.
Horizon ERP is a complete solution that can be used to manage your business. It's easy to use and lets you learn more quickly.
It is strong enough to handle thousands upon thousands of invoices each year. You can track up to 255,000 customers and leads simultaneously.
Horizon ERP is $150.00 for a one-time payment. You can get a free trial.
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Oracle Netsuite
Oracle NetSuite can be used for enterprise resource planning (ERP). It can help you track inventory, manage finances, run an e-commerce shop, and maintain smooth customer relation management (CRM). You can use this flexible platform for many business purposes.
To license core software, NetSuite costs $999 each month. Additional $99. per user per month.
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Arion ERP
Arion ERP is an enterprise planning solution (ERP) that helps organizations in the manufacturing and trading industries manage their business operations. This solution is available on-premise and in the Cloud.
Arion ERP has modules that can be used to manage inventory, sales, finance, project management procurement, and other areas. Automate purchase approval, track inventory in real-time, view a project status, plan resource allocations, and forecast budgets.
Arion ERP provides services on a monthly and annual basis. You can reach their customer service team via phone, email, and online.
The vendor has not disclosed the price details. A free trial version may be offered by the vendor.
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Acumatica
Acumatica Cloud ERP is a cloud-based, mobile technology platform that's ideal for customers of mid-size. It provides a live overview of your business from any location and any device using any browser.
Acumatica Suite offers multi-company financial and manufacturing planning. It also includes control, time, and expense accounting. Construction, eCommerce, customer relations management (CRM), distribution.
Acumatica charges you based on the number of resources your particular instance of the app uses. Annually, the monthly license fee is $1,000. This fee is appropriate for small businesses with a few transactions at once.
Are You Looking For an ERP System To Manage Your Inventory?
Do You Really Need an ERP?
It's an excellent query. Depending on which fundamental functions are important to efficiently manage inventory levels, you can choose the best ERP for your company. Like other software solutions, ERPs have advantages and disadvantages.
Inventory optimization, data-driven reporting, and supply chain transparency can all be improved using ERP systems. Additionally, they enable more accurate quality checks and counts.
ERP system implementation can be challenging, which adds complexity to your company's operations. It could be challenging for certain organizations to adopt an ERP system throughout their entire organization.
ERP systems are not able to be customized for each customer. ERP tools often lack the specialized features that your ecommerce business requires and don't usually offer pre-built integrations to ecommerce platforms or marketplaces.
Due to the complexity of ERP implementation and management, many businesses end up hiring an ERP specialist to help them customize and maintain their system. This comes at a cost and is not flexible enough.
Due to the lack of flexibility, many companies will find themselves growing beyond their ERPs. This could lead to them having to add complicated customizations (potentially from a third-party provider) to keep their ERPs up to date.
This can be avoided. Retail-tailored operating systems like arion. Erp is a great choice for businesses looking for highly scalable software that is easy to use, flexible, and configurable.
These questions can be used by business activity to assess their inventory management processes and systems.
Can My Current System Help Me Plan?
Is your current system able to provide insight into inventory turnover rates, lead times, and sales (and to whom and when), as well as information on stock levels and replenishment?
Do I Have Strategic Insight From My Current System?
You need a system that can help plan for growth and keep you informed about changes in the market, especially with today's supply chain challenges. Stock-outs can drive customers away from your company and lead to stock-outs.
Read More: 5 benefits of ERP Software in the Manufacturing Industry
Quality ManagementAre My Customer Service And Sales Teams Equipped With The Right Insights To Deliver A Great Customer Experience?
All team members should have access to inventory information with modern technology. Not just what is in stock but also where it is, when it will arrive, and how fast it can be delivered to a customer.
An ERP Inventory Management System's Typical Features
ERP solutions are made to make entire business operations simpler. The main job of an ERP inventory management system is to assist with order quantity estimations.
It aids companies in speedy and cost-effective planning and order replenishment, preventing stock-outs and other expensive effects of insufficient inventory control. You can track, figure out, and automate stock levels, inventory, and reorder points with the aid of an ERP. An ERP can automatically place orders for inventory goods when data suggests that a certain SKU is in high demand.
Moreover, an ERP system can be utilized to troubleshoot issues with surpluses or to automatically place sales orders when prices are low. Different functionalities will be available in different ERP inventory management programmes. Most will consist of the following:
Automation
ERPs automate tedious and time-consuming business tasks like data entry to reduce errors and save time. Because users can input data into ERP systems, it becomes accessible to the entire organization. This data is used to fuel highly efficient, intelligent, and automated processes. Automation that works well saves time and money. It is highly probable that you will need to hire a system administrator to code and create automation rules for an ERP system.
All-in-one System
An ERP's primary function is to connect processes across different departments and eliminate data silos. ERPs gather data from all business units to create a comprehensive view of financial, operational, customer, and business data. This business intelligence enables accurate reporting and insights that will help you make better business decisions.
Data Management and Reporting
ERP systems use data to support better decision-making and provide actionable insights. High-quality, real-time reporting is essential for financial savings, operational optimization, and better services. An ERP will combine data into visual reports, charts and graphs.
Supply Chain Management (SCM)
Supply chain management is an essential function of ERP systems. This includes inventory tracking and demand tracking /demand planning, manufacturing processes and logistics, as well as distribution management. ERPs track supply chain data and suggest optimal purchase or transfer orders.
Accounting & Financial Management
An ERP system will provide financial data analysis and tracking for all accounts, budgets, forecasting, and other requirements. It is similar to standard accounting software. Additional features may be offered by some ERP systems, such as revenue recognition, tax and asset management and multi-currency recognition.
An ERP helps business function plan and optimize their financial spending, financial planning and decision-making.
Customer Relationship Management (CRM)
Many ERP systems can integrate with CRMs to include customer data in reporting and decision-making. ERP systems will collect data like contact information, prospect status and order history to make it easy for prospects to reach you.
This allows sales and marketing teams to target high-converting leads and optimize lead times.
Management of Manufacturing
ERP systems are a tool that helps business models to improve their manufacturing processes. They can help with product planning, raw material procurement, and production monitoring.
An ERP will store and collate precise data about your bill of material, shop-floor controls and distribution planning. This information can be used to manage your inventory planning operations.
Some other features that might be possible include:
- Warehouse management systems (WMS).
- Stock transfers/tracking (both in-house and with external fulfillment centers)
- HR & Payroll
- Procurement
- Payment gateways
- Barcoding and scanning
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Conclusion
There is no right or incorrect method for selecting software. It all comes down to what your company requires. Which software solution will help you accomplish your main objectives?
ERP inventory management systems have a lot of potential applications, but they must offer everything you require to scale and expand. These ERP solutions can't accommodate all industries and aren't designed to be universal. An ERP might not have the particular features or capabilities that your industry needs. Moreover, ERP users frequently find that some functions are not being utilized as intended.
A more adaptable method to run your company is with an operating system designed specifically for retail business. It has connectors and features designed specifically to fulfill industry requirements. A dedicated retail platform delivers everything rising online retailers need, especially those using several channels.
Retail-tailored Operating Systems offer greater operational flexibility and agility while still providing the core functions and features that ERPs are known for.
