A perfect ERP software can ensure optimized inventory management and increased profit. Here, we review the aspects of Erp Software For Inventory Management, how does erp help in inventory management, how sap erp will enhanced the gbi inventories system, and benefits of erp inventory management system.
In this guide, we review the aspects of Erp Software For Inventory Management, how does erp help in inventory management, how sap erp will enhanced the gbi inventories system, and benefits of erp inventory management system.
Erp Software For Inventory Management
There are many ERP software and inventory management software available today. But how do you choose the right one for your business? We will help you find a solution that meets your needs.
Inventory management software is used to track the inventory levels and stock.
Inventory management software is used to track the inventory levels and stock. It can help you manage stock across multiple locations, access real-time information of current inventory levels, improve the efficiency of your business and more.
With the software you can manage the stocks across multiple locations, enjoy real-time information of current inventory levels, and improve the efficiency of your business.
With the software you can manage the stocks across multiple locations, enjoy real-time information of current inventory levels, and improve the efficiency of your business. You can also make better business decisions with accurate and updated data regarding your inventory. With this software you can:
- Track inventory across multiple locations
- Manage stock levels with real-time information
- Improve efficiency in tracking stocks
- Improve accuracy and visibility of inventory data
Inventory management software for ERP can help drive growth in your company.
Inventory management software for ERP can help drive growth in your company. The following are a few ways that inventory management software for ERP can improve efficiency, reduce errors, reduce costs and improve customer service:
- It improves efficiency by automating manual labor-intensive tasks such as purchasing and receiving inventory components.
- It reduces errors by providing real-time visibility into all parts inventory across multiple warehouses and locations. This also allows users to monitor current levels of availability in order to avoid running out of stock unexpectedly or being left with excess inventory at the end of the month when revenue may be slow due to holidays or seasonal trends.
- It reduces costs by streamlining some processes that would otherwise require manual intervention or coordination between departments or teams within an organization’s supply chain network (which is often referred to as an SCN).
It helps end users, including manufacturing companies, distributors, retailers, and service providers to better manage inventory that includes finished goods, raw materials, components, parts, and supplies.
ERP software for inventory management helps end users, including manufacturing companies, distributors, retailers, and service providers to better manage the inventory that includes finished goods, raw materials, components, parts and supplies. It helps end users manage inventory across multiple locations on a single platform in real time.
With this software you can:
- Keep track of your business’s performance with accurate data
- Analyze your results to make improvements based on solid facts rather than hunches or guesswork
- Identify opportunities for growth by accurately tracking your sales figures and understanding how they relate to other metrics like customer retention rates
The software improves accuracy and visibility of inventory data by allowing users to collect real-time data through mobile devices like smartphones and tablets.
The software improves accuracy and visibility of inventory data by allowing users to collect real-time data through mobile devices like smartphones and tablets.
With this feature, the user can download the app on his or her device and enter the details of a product that is to be tracked. The app then sends out a signal, which is received by a beacon placed in proximity to the product. Infrared light is emitted from this beacon, which then reflects off an object that has been identified as an asset. This reflected light can be captured by any camera fitted with an infrared filter.
The information gathered by this process is transmitted wirelessly back to your ERP system or database via Wi-Fi connectivity (if available).
The collected data can be uploaded to a centralized database that can be accessed and shared by authorized employees.
The collected data can be uploaded to a centralized database that can be accessed and shared by authorized employees. This way, you can avoid the hassle of keeping track of various hard copies of inventory records in different departments.
The data is useful for making decisions about inventory management. For example, you may need to know which products are selling less than others so that you can adjust your marketing efforts accordingly. Similarly, you may want to know what the ratio between sales and production costs is for each product category or brand so that you can determine where improvements are needed – whether it’s in production efficiency or marketing activities.
Inventory management software can make managing inventory much simpler.
If you’re like most companies, your inventory management process is time-consuming and manual. You have to manually track all of the different types of inventory in your warehouse and update them when they are used up. This can be extremely difficult if you have many locations or just one location with a large amount of products.
Erp software for inventory management will help improve the efficiency of your business by making it easier to manage multiple inventories across multiple locations. The software allows you to manage finished goods, raw materials, components, parts, and supplies all in one system so that there is less room for error in tracking information about your stock levels.
how does erp help in inventory management
3 Benefits of ERP for Inventory Management
Inventory management serves as one of the greatest challenges for discrete manufacturers. For example, Forbes estimates that four weeks of inventory for a manufacturer of heavy machinery could easily amount to $100 million. High storage costs, low turnover rates and waste resulting from inefficiently managed inventory can take a huge toll on your bottom line.
Enterprise resource planning (ERP) software could be the solution your business needs to maintain optimal stock levels. ERP includes inventory management modules designed to track materials, components and products throughout the supply chain. We’re going through the three benefits of managing inventory with ERP software.
1. Total Visibility
For most manufacturers, the biggest obstacle to inventory management is poor visibility. Visibility gaps can often be attributed to outdated, manual methodologies. 46% of small businesses either don’t track inventory or use a manual method, and several large companies also rely on spreadsheets and legacy applications to manage inventory. With data collected across multiple areas, your organization can’t achieve a total view of your inventory or effectively translate this information into actionable insights.
ERP lets manufacturers coalesce inventory and warehouse data and operations in a single solution, automatically delivering stock levels, product history and valuable inventory metrics to users. Additionally, ERP software can leverage information collected through RFID tags, barcodes, IoT sensors and other IDs to track materials and products in real time. Notifications will alert you of over- or under-stocking, so you can respond instantly to issues. Furthermore, lot and serial tracking as well as detailed audit trails allow you to maintain compliance with a large range of government and industry standards.
ERP also includes data analytics and reporting tools to improve inventory management strategies. AI and BI technology can create forecasts to help manufacturers accurately predict demand to avoid stockouts or excess carrying costs. Reports can summarize how each product is selling and identify process roadblocks across multiple warehouses. With 360-degree visibility, businesses can avoid costly errors and maintain optimal stock levels.
2. Greater Efficiency
Manually tracking inventory doesn’t just inhibit visibility. The time it takes to enter SKU codes, locations and other information across spreadsheets and applications crushes your company’s efficiency. This repetitive work hurts employee morale, as users dedicate time to mundane data entry instead of decision making. Furthermore, it results in costly mistakes. Human error has a huge impact on inventory fulfillment. When someone makes an incorrect data entry, you could be taking more time out of your schedule to resolve issues.
With ERP, data is automatically updated in one place. That allows authorized users across your enterprise to access crucial information without inputting data into multiple platforms. This frees up a lot more time and reduces human error. Additionally, with precise data at all times, you can ensure the right suppliers, materials and equipment are in place to keep up with customer demand. ERP can also automate tasks to streamline inventory management. For example, your software can instantly contact suppliers when it’s time to replenish materials.
3. Huge Savings
Without a solution that can track expenses and maintain accuracy, manufacturers find themselves leaking money in their inventory management practices. Inventory shortages, dead stock and poor inventory turnover rates are bound to occur if you can’t track stock or predict demand. This in turn damages customer relationships, as customers end up with late or incorrect orders. ERP’s real-time tracking, precise data and comprehensive analytics can help you maintain appropriate stock levels and avoid critical issues.
Additionally, the software helps you fully understand costs associated with inventory. Though it’s easy to view inventory cost per unit, this doesn’t give you a complete view of expenses. Epicor ERP gives users the ability to separately track material cost, material burden, subcontracting, labor and burden costing. It also maintains FIFO, average, lot, last and standard costs for each individual part master. With these granular metrics, you can find effective ways to lower costs and improve profit margins.
ERP’s in-depth insights and process automation simplify inventory management and increase productivity. Epicor, a leading ERP vendor for manufacturing and distribution, designed its software to promote visibility and efficiency while reducing costs across your enterprise.
To optimize your inventory management strategies, team up with Datix. Datix is an Epicor Gold Partner that has been specializing in ERP software for over 20 years. Our certified consultants know how to make the most of each Epicor module to help your business elevate its performance.
Stop letting inventory management challenges hurt your bottom line. Contact Datix today to learn how to transform your business through software!
Tags: Transforming Business Through Software, Epicor® ERP, Solutions and Services, erp consultants, erp consulting, inventory management, IoT, manufacturing erp, visibility, erp expert, manual data entry, warehouse management
sap erp will enhanced the gbi inventories system
Companies that excel at inventory management drive the maximum amount of profit—and customer satisfaction—from the least amount of investment in stock. And as we see from those efficient businesses, managing inventory successfully is all about data: purchases, reorders, shipping, warehousing, storage, receiving, customer satisfaction, loss prevention, stock turnover and more.
Fortunately, much of this information is readily available from inventory management systems. Companies that integrate their enterprise resource planning (ERP) systems with inventory management functionality have a competitive advantage. The main competitive advantage, however, comes from being able to share information within different parts of their business in real-time.
What Is ERP Inventory Management?
Enterprise Resource Planning (ERP) inventory management is a system that allows businesses to manage all aspects of their business on a single platform, including: inventory, finance, planning, logistics and operations. An ERP inventory management system provides real-time inventory information to the entire organization. This is an important capability for businesses that plan to expand, have complex workflows or supply chains, need advanced automation, operate in “just in time” mode, sell many products or simply wish to maximize their investments in inventory.
Do You Need Inventory Management? 3 Questions to Ask
Businesses should ask this series of questions to evaluate their current inventory management systems and processes:
1. Does my existing system help me plan?
Does your current system provide lead times for restocking as well as insights on, for example, what is on hand, when to replenish, inventory turnover rates and what is selling (and to whom and when)?
2. Does my current system provide strategic insights for my business?
Especially with today’s supply-chain challenges, you need a system that can help you plan for growth and provide a heads up on brewing changes in demand. The last thing you want is stock-outs that drive customers to your competitors.
3. Do my sales and customer service teams have the insights they need to provide a quality customer experience?
With the technology available today, all team members should have data on inventory levels at their fingertips. And not just what’s on hand now, but where it is, what’s arriving soon and how quickly it can be in a customer’s hands.
How ERP Inventory Management Benefits Your Business
ERP systems draw on a variety of data sources to help companies better understand the performance history of various SKUs, among many other insights. Organizations use this data to make more informed ordering decisions and create more accurate forecasts to meet future demand, without ending up with excess stock.
ERP-driven inventory management also increases efficiencies throughout the supply chain. As a centralized system, it can cut down on double-handling of goods and automate daily tasks, like reordering.
Other benefits of incorporating ERP into inventory management include:
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Major Functions to Look for in an ERP Inventory Management System
Start with its long-term potential: Any new system that reaches into so many corners of your business and requires time and effort to implement must meet your needs now and for the foreseeable future. Avoid systems with limited functionality that you could outgrow within three to five years.
Keeping that in mind, here are five steps to find a system right for your business:
Step 1: Identify your intended outcomes.
Consider your stakeholders’ goals, and create a business case. The strategic-planning process involves analyzing business trends, external opportunities, internal resources and core competencies.
Then, ask questions: How does the proposed purchase align with long-range objectives, both established and recently revised? What valuable insights to inform inventory strategy will it bring that we don’t have today?
Step 2: Scope out the project.
What data sources must be integrated to feed key metrics into the ERP inventory management solution? What partners, such as suppliers, will need access? Draft a list of the specific features and capabilities that will be needed to make good on the desired outcome.
Step 3: Develop an ROI analysis.
Think beyond cost cutting; focus on how the investment will make your company more profitable, more efficient and deliver better customer outcomes. Specifically, show exactly how the technology will help the business grow profitably by better managing inventory.
Step 4: Draft a vendor list.
Determine which systems can meet your needs, and review case studies for businesses similar to yours. Ask the following questions to narrow down your list of possible suppliers:
Step 5: Look ahead.
Review your potential system vendor’s product goals and assess whether its roadmap aligns with your business needs.
Use the following checklist when researching whether an ERP inventory management system is right for your business.
benefits of erp inventory management system
Managing your inventory is one of the most critical factors for any business dealing with physical goods. Manual methods of inventory management such as utilising spreadsheets can be proven to be inaccurate and time-consuming, which is one of the main reasons why businesses turn to ERP systems to effectively manage and optimise inventory level while maintaining data accuracy.
ERP system goes beyond merely managing stock quantities but also to expand to other key related areas such as financial impact of goods movement, procurement, order management and more. Here are the 5 benefits that an ERP can bring to you for your inventory management needs:
1. Gain Control and Visibility Across Multiple Locations
The inventory module in an ERP provides real time inventory visibility into stock levels across all locations, including warehouses, stores and goods in transit. ERP achieves this feat by recording and updating all inventory transactions in real time, whether through a direct user input, process automation or file exchange with other supporting systems.
It also allows you to set predefined parameters such as minimum stock levels to support inventory replenishment, or order allocation rule to automate order fulfilment. As a result, you can proactively monitor stock levels and sell-through, procuring inventory or transferring between locations as necessary to ensure inventory availability and minimise obsolete inventory.
2. Prevent Excess Inventory
Customer satisfaction and profitability require maintaining the right balance of stock levels to fulfil anticipated orders. Carry too much inventory and your capital is tied up in products that aren’t being sold. Moreover, there are costs to store and manage the inventory, particularly items with limited shelf life. However if carry too little, the business runs the risk of stock outs and an inability to meet customer demand.
With a modern inventory management system, particularly one that is integrated with the ERP software can help with forecasting and demand planning, ensuring that the perfect amount of inventory is kept on hand.
3. Automation in Cycle Counting
Using automation in your cycle counting process can improve the accuracy of your results. Automation also lowers staff costs, boosts worker productivity, provides trust in your stock levels and enables real-time visibility as your inventory changes.
By streamlining your inventory cycle count, you not only stand to eliminate the inventory costs associated with human error, but you can also benefit from further cost-savings.
4. Improve Customer Experience
As customers rely more and more on their smartphones to “window shop” for the products they’re looking for prior to visiting local stores to make their purchases. The need for an integrated inventory management system that constantly keeps websites up to date is more important than ever.
When customers are confident that the inventory items they see on a brand’s website are represented accurately, they’re more likely to visit their store and make a purchase. This can help to build trust and drive more foot traffic.
5. Facilitates Growth
Using an inventory management system, it enables you to easily plan for your growth and scale your business the right way. As your business develops, enters new markets, and diversifies its products, the system allows you to scale depending on your business needs. You can scale profitably without having to worry about spending on upgrades to your system.
Oracle NetSuite Cloud ERP
Oracle NetSuite Cloud ERP solution provides rich functionalities to manage inventories for many businesses, in order to make better and faster decisions. It allows you to highly control inventory including demand planning, procurement, fulfilment and finance in multiple locations from your favourite device in real time. Oracle NetSuite Cloud ERP also helps businesses to reduce errors and improve efficiency without wasting resources on manual reporting.
PointStar is a 5-Star Oracle NetSuite partner with extensive knowledge and experience in financial accounting/ERP and CRM solutions for small to mid-market and enterprise customers. Established in 2008, with offices in Singapore, Kuala Lumpur, Jakarta and Ho Chi Minh, our expertise ensures successful implementation of Oracle NetSuite Cloud ERP for more than 100 clients throughout the region.