Inventory management can get tedious and exhausting a times. However, properly managing the inventory levels is the key to running a successful business. Amazon didn’t become what it is today without mastering the art of stock management. Hence, you do need a great ERP to manage your inventory for you. Here are four benefits of ERP inventory management.
1. Allow for Replenishment Planning
Replenishing your most popular items is half the job of inventory management. You need to stock up on items that fly off the shelves every week. These items can, of course, differ depending on the time of the year, but then that’s the magic of inventory.
The quantity of your inventory has to be accurate so that you don’t incur stock-out costs. This also signals the business to stock up when the supply is short. The ERP management system will allow you to re-order the right quantity of goods/materials.
The system will allow you to fill the demand for the exact quantity that is forecasted, and a little extra for buffer inventory. This is to meet demand and prevent stock-out costs. The goal here is to make fewer transactions and buy in bulk. Hence, that will save resources and manpower. This will also lead to better accuracy in inventory figures.
2. Assist with Surplus Management
Surplus inventory is not always a good thing. It’s great when you have incoming customers that are disappointed with other businesses. However, when products aren’t flying off the shelves, it’s a tough spot to be in. Then the question is to either return the item or wait.
An ERP management system will highlight the item and give you options. Whatever the case may be, this type of management is needed to manage the surplus. If the surplus goes unnoticed, this can mean a loss for the business or spoilage- if it’s perishable.
3. Track Turnover
ERPs can make it easier to keep a track of all inventory items. This helps you track which items are doing well and which aren’t, not just the overall progress. This is one of the singular ERP inventory management benefits. It not only helps categorizing different items by success, but it also helps in analyzing why they’re selling well at different times of the year.
A high-end inventory management system helps in understanding why one product is gathering dust on a shelf and whether it’s time to reconsider stocking. If an item is approaching the end of its shelf-life, you can talk to your supplier and order some more. Perhaps, you can make changes to your storage environment to improve the shelf life of your items. Hence, tracking turnover can help any
business make small, but meaningful changes.
4. Save Costs
In the end, it all comes down to saving money. All of the things that help in inventory management ultimately translate into saving money. High-quality ERP management software helps in saving big bucks when the entire year’s accounting is done. Saving a few dollars here and there seems trivial. However, when the entire bill comes in and you realize you’ve saved hundreds of thousands, it matters. That money can be spent on improving company practices, investing in new products, etc.
The efficiency improvements that inventory management lends you through ERPs can’t be brushed to the side. It’s only logical that a better automated system informs you of various opportunities that come with managing inventory. To manage your inventory in the most efficient way, get Alpide ERP.
