Understanding ERP In Inventory Management

Enterprise Resource Planning, also known as stock control, manages all aspects of a company’s inventory system, including receiving, tracking, warehousing, storage, shipping, and turnover. It allows you to track your orders, inventory levels, and sales at the point of sale and streamlines inventory management.

ERP software automates all aspects of inventory management. It provides a complete solution to all your inventory management needs.

The Benefits of Integrating ERP into Inventory Management

ERP is quickly consolidating its place in organizations. ERP now integrates with many operations that were not initially integrated into ERP. This allows for greater benefits. Companies spend an average of 6.5% on ERP.

Here are some benefits of integrating ERP into inventory management

1. 1. Inventory Optimization

There are many inventory challenges. A simple slip can cause problems.

It is a good idea to keep old products in stock when there is a changing market. This is especially important for products that are constantly changing. If there is an increase in demand, or if the stock is low, it can lead to loss.

A large inventory pile can make it difficult for owners to sell.

Integrating ERP can help you optimize your E-commerce inventory. This tool gives insight into the stock levels and future demand.

2. Supply Chain visibility

Supply chains are complex processes that involve multiple parties who supply goods and materials to companies. This process must be smooth and updated regularly. Although companies initially had the power to perform this task, failure to share or make incorrect updates resulted in a disruption to the supply chain.

ERP integration can be used to streamline production planning. All production is integrated using easy-to-use tools and precise details. These details can be shared with suppliers and logistics partners.

3. Precise Financial reports

The inventory is a significant part of capital investment in most companies. The inventory details are crucial for financial reporting, which is essential for other processes such as revenue forecasting, tax returns, and revenue forecasting.

Inaccurate inventory information can cause problems later and lead to incorrect financial reports. Integrating ERP and inventory means that every detail of inventory can be updated automatically and accounted for in your financial system.

Many ERP companies offer features that create detailed reports automatically. This can lead to inaccurate financial reports, and other financial activities.

4. Improved Interface

Different operations may use different systems within an organization. Each department uses its own interface, which employees must learn how to use. The ERP tool provides a simplified interface that integrates multiple operations. To eliminate the need for additional interfaces, you can simply integrate them with inventory management.

5. Higher Savings

The single benefit of integrating ERP with inventory is cost savings. Inventory optimization allows you to strike the perfect balance between supply and demand, reducing the costs associated with expired products or a lack thereof. Optimizing inventory data can reduce errors and translate into capital gains.

According to estimates, cloud subscriptions for business apps will generate $170 billion in revenue by 2020. Integrating ERP and inventory management can save you money. It is easy to integrate ERP and inventory management, and you will reap many benefits.

What are the functions of inventory management ERP software?

A cost-effective inventory management system can help you keep your costs under control and seamlessly manage your supply chain.

Here are the basic functions of Inventory Management Software.

1. Simple Inventory Management

Inventory management software can make managing your inventory much easier, more efficient, and cheaper. Inventory management allows you to automate key business processes and make better decisions.

2. Productivity and efficiency increases

This tool automates manual tasks, which can increase productivity and efficiency. It will also help you grow your business. The software is able to efficiently manage stock, ship labels, process orders, and update listings.

3. Profitability increases

Did you know that 1/3 of US businesses miss shipping deadlines because they sold out-of-stock items?

Inventory management software maintains detailed records about marketing and production to increase profitability and maximize return on investment.

ERP automates key business operations, making it possible to accurately and efficiently complete essential tasks such as updating listings across all channels, managing stock levels, and processing orders. This can reduce costs and increase profitability.

 4. Quality Management

The ERP system can help identify, track, or even avoid issues such as delayed shipments, damaged packages, and other issues. The analytics feature can help you identify factors that impact quality management.

5. Planning and forecasting

Inventory management software helps to identify the possibility of opening regional warehouses near key customers. The inventory management software provides insight that can be used to improve service and efficiency.

6. Tracking serial numbers

ERP software also allows for seamless tracking of serial numbers. The software can track unlimited serial numbers, from the moment inventory is received until it is issued. The data is also permanently stored in the system so that it can be accessed for future reference.

Inventory management software is a must-have for business owners looking to expand their company's profits.

Common Inventory Problems that an ERP Inventory System can Solve

A business without proper inventory management can cause problems. The most common inventory problems can be solved by upgrading to Enterprise Resource Planning (ERP).

You can avoid these problems with an ERP inventory system:

1. Excess Inventory

43% of small US businesses don't keep track of inventory or use a manual system.

It is best to keep seasonal products in stock. Overstock can lead to increased overhead and lower liquidity. If you forecast too conservatively, inventory shortages may occur.

In reality, is the U.S. In fact, retailers have approximately $1.43 of inventory for every $1 in sales

An ERP inventory system allows you to easily analyze sales history and seasonal trends. This can help you create realistic safety margins for the business.

2. Stock Shortages (Out of Stock)

Simply put, inventory shortages can be as expensive as excess inventory.

If your products are highly profitable and in a competitive market, low stock levels during peak selling periods could cause problems.

ERP inventory software allows you to set "par levels" for each product (also known as minimum inventory thresholds), which can be modified throughout the year.

If a product's stock falls below the minimum level, the software instantly sends out an alert for more orders. An ERP inventory management software can send purchase orders automatically when combined with the right automation software.

3. Dead Stock

The US has a range of 20-30% to obsolete or dead inventory.

On-hand, also known as deadstock, is any product that has not been sold, is unused, forgotten about, or is otherwise ineligible. Deadstock is bad because it costs money on two fronts.

The original cost of goods sold cannot be recouped

Every day that a product is left idle, the storage (warehousing), costs will rise.

An ERP inventory system helps keep track of every detail about the product's purchase, manufacturing, expiry, and insolvency. You can even receive alerts when stock is low.

4. 4. Inventory Turnover

You can use inventory turnover to determine when you should reorder or remanufacture products. It takes a lot of time to calculate your inventory manually. 46% of SMBs don't keep inventory records or use a manual method. This involves tracking:

Count cycle

Cycle of orders

Delivery period

It is time-consuming and can lead to human error. Automating this process will allow your business to remain fully operational while maintaining and ordering goods. This process can be easily executed with ERP consulting.

Top 5 Inventory ERP Softwares to Manage Inventory Effectively

We have put together a list of the best ERP software solutions to help you reduce inventory problems.

1. 1. Batchmaster ERP

Batchmaster ERP offers process manufacturing ERP solutions for the pharmaceutical, chemical, nutraceutical, and food industries.

Batchmaster ERP makes it easy to run your manufacturing application with Sage 100&300 or Microsoft Dynamics, QuickBooks, GP, and SAP Business One financials.

Upgrades to enterprise resource planning (ERP), which simplifies the supply chain, CRM, financials, and other functions, are also possible.

Approximate Pricing

Pricing for the BatchMaster Process Manufacturing Application starts at $2,000 per user in the form of a one-time payment. The company does offer a trial or a free version.

2. Horizon ERP

Horizon ERP is a ready-to-use off-the-shelf solution that's great for small businesses. It seamlessly handles billing, accounting, inventory management, and other tasks for medium-sized businesses.

Horizon ERP offers a complete solution for your company. It is easy to use and allows you to learn faster.

The software is robust enough to handle thousands of invoices per year. It allows you to track and manage up to 255,000 SKU's, customers, and ledgers simultaneously.

Approximate Pricing

Horizon ERP costs $150.00 for a one-time payment. A free trial is available.

3. Oracle Netsuite

Oracle NetSuite is a tool that can be used to implement enterprise resource planning (ERP). It will help you manage inventory, track financials, run e-commerce shops, and maintain smooth customer relations management (CRM). This flexible platform can be used for a variety of business applications.

Approximate Pricing

NetSuite costs $999 per month to license core software. You will pay an additional $99. per user per month.

4. CREST ERP

Templar offers CREST, an enterprise resource planning solution (ERP), that assists organizations in the manufacturing or trading industries to manage their business operations. This solution can be deployed on-premise or in the Cloud.

CREST ERP offers modules for inventory management, sales, finance, and project management procurement. Automate purchase approval, track inventory in real-time, see a project status, plan resources, and forecast budgets.

CREST ERP offers services on a monthly or annual basis. Contact their customer service team by phone, email, or online.

Approximate Pricing

The price details have not been disclosed by the vendor. The vendor may offer a free trial version.

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5. Acumatica

Acumatica Cloud ERP, a cloud-based and mobile technology platform, is designed for mid-sized customers. It provides a real-time overview of the business from any location, anytime, any device, using any browser.

Acumatica Suite includes multi-company accounting and financial planning, manufacturing planning, control, time and expense accounting, construction, services retail, eCommerce, customer relationship management (CRM), and distribution.

Approximate Pricing

Acumatica bills you based upon the number of resources that your specific instance of the app uses. The monthly license fee is approximately $1,000 and is payable annually. This fee is suitable for small businesses that have a few simultaneous transactions.