To be successful in business today, you need to manage its every aspect; when we talk about manufacturing, you must ensure optimal productivity. Inventory is a huge expense a business has to incur to drive production, sales and customer service. As it’s a big part of the current assets of a business, efficient maintenance of inventory is imperative. When your stock is in excess, you incur unnecessary expenditure in the form of working capital requirements and carrying costs; if your inventory is low, you may suffer loss of productivity or your sales revenue may come down. So now you see, that for the smooth business operations of a business, reliability of inventory is vital.
A comprehensive and effective ERP software solution can help you manage inventory properly, from planning and organizing to directing and assigning resources to enabling paperless transactions and barcode scanning. ERP software helps to streamline your entire business operations with the quick, accurate and efficient delivery of inventory information – and this can provide you with actionable insights.
What is Inventory Accuracy?
Inventory accuracy refers to the correct balance of stock maintenance in your warehouses – this necessitates appropriate cycle count. A cycle count is nothing but the audit procedure of inventory where you ensure that a subset of inventory in a particular location on a specific day is counted. It goes without saying that you need to have a deep understanding of consumer demand for your products to achieve optimal balance of inventory levels; cycle counting helps to control the hurdles thrown up by the fluctuating demands as the counts are addressed to inventory accounting.
With inaccurate inventory, a business may suffer from:
- Inadequate service levels
- Higher operating cost
- Unsatisfactory customer service
- Product obsolescence or spoilage
- Excess storage cost
- Unnecessary levels of inventory
How can ERP software improve inventory accuracy?
Maintaining efficient and well-defined warehouses
It is important to plan your raw material and other goods’ procurement before you actually place orders. Excessive stocks mean higher expense and blocked capital, but inadequate stocks can cause you to lose revenue and unhappy customers. This scenario can be changed with an effective and reliable ERP software solution.
ERP software contains several modules including for inventory, and can help you automate and streamline your inventory management including checking purchase orders, receipts, transfers and issues of stocks, and make it hassle free, enabling you to maintain your warehouses much more efficiently than before – and all of this with just a few clicks of your mouse. All you need to do is ensure that you have bins and shelves that are properly organized so that you can locate the required inventory items when needed and also that you make optimal use of every inch of available space.
See the big Picture
If you have procedures in place, you will be able to maintain stocks with more effectiveness and precision. Whenever there is a problem with the inventory, warehouse managers should be able to react positively and handle the matter judiciously. An ERP software solution comprises built-in automated solutions that focus on streamlining warehouse activities like transfers, scanning and generating barcodes, printing labels and so on. This way, you can plan numerous inventory activities like identifying materials that need to be purchased, payments that need to be prioritized, where and how to stock items and so on. An efficient ERP provides a comprehensive solution that helps you to take care of sales, purchase, cycle count, quality checks, tracing lots, finance, and accounting, among others, This way you will see fewer errors, delays in work, plan better, encourages reporting and forecasting, and empowers your employees, making them more efficient and committed.
Higher customer satisfaction
With precise information about shipments, product prices, item location and more, it becomes easy to maintain optimal product levels – which leads to timely deliveries and happier customers. Enterprise Resource Planning is a crucial software solution in the manufacturing industry that helps streamline overall business processes. This includes managing calls and queries from customers as well as the entire buyer journey. ERP systems facilitate customer satisfaction through:
- Streamlining of shipping ops
- Maintaining good relationships with vendors
- Better UX with each release
- Maintaining a balance between supply and demand
- Reducing duplication of work and eliminating data redundancy
- Doing away with manual spreadsheets and other old practices
Maintaining the quality of items in your warehouse
A good ERP software solution is closely integrated with quality management, and ensures that items that are stored in the warehouses are ready for use in production and don’t suffer damage. This means that there is focus on tracing lots, handling test processes, and the use of quarantine orders to isolate items that need to be quarantined. ERP software helps ensure that the top management can take decisions in time so that compliance requirements can be met, and forecasts can be made more accurately. Entrepreneurs and managers can plan for sampling whether on a single level or multiple level, track serial and batch numbers easily, facilitating more efficient quality control operations.
Planning inventory roadmap
A reliable ERP system should support material requirements planning as well as the master production schedule. The former helps ensure that you stock your warehouse with optimal inventory levels as to ensure uninterrupted production and keep your customers happy by meeting their demands. It also enables you to plan for multiple level processes like tracking inventory, stipulating timelines and sources of data and adapting to the changes in demand. The latter – or MPS, facilitates the management of lead times, planning for finished products and makes sure that resources are properly allocated among other things.
A reliable and effective ERP solution helps you ensure that you have the appropriate amount of inventory available in your warehouse whenever you need it, as it is a comprehensive solution that helps automate and streamline your overall business operations. The inventory module helps to cut down unwanted expenditure and eliminate unnecessary stocks.
IPIX ERP is a comprehensive, wen-based, scalable, flexible, customizable, reliable, and affordable ERP software system that helps foster a productive work environment. Created by a skilled and certified team of professionals , this powerful solution caters to a wide range of industry verticals including the manufacturing industry.
So what are you waiting for? Make sure that your business meets regulatory compliance – get IPIX ERP software today. Contact us for a demo or more details.