Why Use ERP Software in Warehouse for Inventory Optimization?
Inventory management is a critical factor in any business. It is not only about knowing stock’s whereabouts, but also the warehouse optimization processes for ensuring its correct balance with the outflow. There are many factors responsible for assuring accurate goods and stock levels, such as:
In-stock & out-of-stock items,
Customer requirements,
Most selling items,
Goods re-stocking, etc.
The main reason a business suffer loss because of improper management of their warehouse inventory. It results in loss of money, material and labor investment. Having an ERP software in place can prevent all such happenings. It can track and maintain every single detail related to purchasing and sale orders. The users will also get real-time visibility of inventory. Also, businesses can analyze the buying behavior of their customer’s and plan stocks for the warehouse accordingly.
In addition, the four ways ERP systems can help you in inventory management are given below:
Handling Quality Level
In the inventory, maintaining the quality of the items is very important. Having an ERP software system installed in the warehouse, one can easily keep an eye on the quality levels of the inventory items. As an ERP user, you can define quality inspection plans based on the items. It will contain certain checklists to ensure that the item’s stock entering the testing phase is properly examined to see whether there are any damages to the product or discrepancies in the product information. You will also get the detailed feedback of the item’s quality and testing process. By installing Enterprise Resource Planning software, you can nullify unnecessary stock handling and can improve your customer service to deliver quality goods.
Proper Warehouse Management
You will agree on a point that managing the warehouse operations is not an easy task. From stock entry to delivery to the suppliers and customers, all the tasks have to be carefully handled. ERP systems can automate and manage all these operations without any hassle. As centralized systems, they can manage multiple activities like:
Stock adjustment
Bin allocation
Shipment
Inter-store stock transfer
ERP software allows you to access bin locations, so that you may know the exact positions of the products. It will help you to gather complete information about the status of stock movement. By using such warehouse management techniques, you can easily handle goods movement, gain visibility and speed within the supply chain, and make decisions accordingly to handle customer’s requests.
Control over Inventory
It is very important for a warehouse business to keep track of fast moving out goods and slow moving out goods. By doing so, one can easily plan the next purchase order. When you integrate inventory operations with ERP software, you will get a real-time view of all the processes under one platform. It will help you to streamline your inventory operations. The stock levels management would become much easier, regardless of the inventory size and amount. You will also get inventory analysis reports on a daily, weekly, or monthly basis, which will help you to make better business-related decisions to ensure:
Adequate availability of stock
Increase in profits
Reduce in expenses
Stock Administration optimization
An advanced ERP software solution will guarantee complete control over stock administration. It includes various task, like:
Proper Bin allocation according to the category of the product
Product shelf life tracking
Knowing goods costs, the time when they were brought in and discharged from warehouse
Handling stock related problems
There are different types of ways an ERP system can classify and group the items in an inventory. Having a user-friendly UI would be beneficial to:
Manage evaluation methods
Tag and classify products
Setup allocation methods
Get details of products stored
Find a suitable substitute for an item
Identify standard supplier associated with an item
Use multiple measurable units
Track products costs
An ERP system can also help in maintaining a balance between stock availability with sales needs so that businesses can make a better decision in acquiring new inventory.
Having good control over the inventory allows a business to avoid items wastage and deliver products on time. After installing ERP solutions by LOGIC Enterprise, you can avoid the inventory pitfalls in your organization. It ensures that the right stock is available at the right place and at the right time to fulfill the customers and suppliers demands. As a result, the productivity of the business will increase and you will earn much greater revenues.
