ERP For Inventory Management- 10 Best Benefits And Importance
Ordering, storing and shipping of products make up a very vital part of any product-based business. Hence, proper management of stock emerges to be a profoundly inevitable aspect of a successful business. The term an ERP for inventory management thus came to rise when business all over realized that managing products were as important as selling them.
Inventory management helps decrease holding costs as you precisely come to know when it’s time to re-order, re-stock and quickly sell products. An ERP for inventory management helps excellently in optimizing overall inventory and more. Not only can businesses optimize all processes but also keep a track of business growth and strategize accordingly.
ERP for Inventory Management helps combat crucial inventory challenges
An ERP for inventory management helps you automate and consolidate complex supply chain processes. Upgrading to an ERP System can help you avoid the complex inventory management challenges, which if left unattended can cause serious business havoc.
Inventory in excess can increase overhead and reduce liquidity and conservative forecasting can lead to a shortage of goods. An ERP for inventory management helps set realistic safety margins by analyzing historical sales data and past seasonal trends.
Shortage of inventory can be just as costly as excess inventory. If you have less inventory space during peak selling time, it can be quite detrimental. ERP for inventory management helps you set minimum inventory thresholds for each product and be changed when needed.
Expired products and all other products that cannot be sold come under dead stock. In this case, companies lose money on two factors: goods cannot be sold at all or cannot be sold at original selling prices. Secondly, companies also waste space and warehouse costing. An ERP for inventory management helps track your stock’s manufacturing and expiry dates and accordingly sends alerts to keep you well informed about your inventory.
To know when to re-order and re-manufacture, you must understand the inventory turnover. Calculating the count cycle, order cycle, and delivery cycle are extremely time-consuming and has huge space for human errors. ERP for inventory management helps automate this process and increase productivity and efficiency in all phases.
The benefits of an ERP System for Inventory Management
ERP for inventory management enables businesses to make better decisions by equipping them with accurate data and insights. Listed below are a few advantages of deploying an ERP solution for Inventory Management.
An ERP for inventory management helps in better inventory organization. You can even manage how your stock lies in your warehouses based on the insights regarding what products are sold more. Accordingly, you can save time and effort by arranging products to ease accessibility and save time while loading products into conveyances for deliveries.
In-depth product analysis
ERP for inventory management helps you keep ground-level track of your products and warehouse from any destination. It gives you regular and precise updates regarding when and why shall you prioritize certain products, reorder, re-manufacture, and get rid of a certain stock. Moreover, you also get regular updates about which stock is approaching its expiry date.
An ERP is a very efficient time-saving solution that helps cut down double handling of products and enables automation to save time and increase efficiency. This results in a more accurate output in a lesser amount of time.
Supply chain transparency
Business these days outsource their shipping and logistics. ERP for inventory management helps integrate your systems with external partners to ensure all systems communicate with each other, maintaining a thorough transparency throughout.
This blog covers all the key highlights of the benefits of having an ERP for inventory management. Not only does an ERP for inventory management help save costs but also enables business expansion without actually imposing the need to expand infrastructure. It also helps you extract maximum output from your current eco-systems and helps you expand correctly.