In the age of Internet-of-Things (IoT), it is mandatory to adopt the latest technological solutions to manage your business operations. If you don’t invest in technology, you’ll be soon outdone by your competitors. Installing ERP software is desirable as you can connect, manage, and optimize business operations with ease and efficiency. This is an ideal approach for ensuring a positive growth of your business.
According to Wasp Barcode, 43 percent of the small businesses do not track inventory or use a manual process to do so. Inventory forms the core of most of the businesses, and therefore, you must invest in stable inventory management software. Nowadays, ERP software is capable of completely managing inventory operations in real-time.
How ERP software facilitates real-time inventory management? Read on to know more.
Effective End-to-End Process Management
Everything revolves around inventory, whether you are into manufacturing, distribution, or retail. The ERP software takes into account all the parameters from the initial stage of procurement to the final stage of delivery. So you can expect end-to-end process management. The software links up all the aspects, ensuring a seamless workflow order. And everything happens in real-time. The inventory management system takes care of the following tasks:
- Based on the inventory levels and raw material requirement, placing an order with the supplier
- Tracking the shipment and ensuring it arrives in time
- Checking in the consignment, procuring shipment, inspecting the invoice, and updating inventory levels
- Sharing inventory information with every department
- Monitor and updating inventory levels during the manufacturing, distribution, delivery, returns, and exchanges
The list is not at all exhaustive. The inventory management software is capable of managing minutest aspects of the supply chain management. The inventory ERP software is connected with all the operations. It aids in performing an in-depth cost analysis as you have access to revenue and expenditure records.
Maintain Optimum Inventory
The real-time access to inventory data allows employees to take prompt decisions. As ERP software updates inventory-related data across concerned departments, the decision-makers can effectively collaborate to take a suitable course of action.
When you are aware of the incoming and outgoing stock, you know how to maintain inventory levels. There is no need to keep inventory in excess or in deficit. For example, if a raw material is in excess, you can cancel future procurement orders and take actions to increase its consumption. Similarly, when the stock levels are low, you can immediately create a new order. Ultimately, Enterprise software allows you to maintain optimum inventory levels, neither too low nor too high.
The use of inventory software is not confined to stock levels. You can use it to classify and organize stock, scan barcodes and serial numbers, segregate on the basis of date of manufacturing and expiration, manage defective stock, and so on.
Monitor Sales Performance
For the e-commerce industry, monitoring inventory levels can be a way of analyzing sales performance. The stock levels convey information about the products in demand, outdated products, and so on. The real-time data shows the sales performance of products at specific time intervals. For example, during festivals, some of the products perform better than the others.
When you have access to sales data, you can customize sales and marketing campaigns accordingly. Your approach may focus on triggering the sales of low-performing inventory, focusing on a particular collection of products for the festive season, and so on. And since you are aware of the sales numbers, you can communicate with vendors to supply the stock before the inventory goes nil.
Strategic Business Development
When you real-time inventory management software to manage warehouse chores, you can spend more time on business development. Based on the analytics reports and data, generated by the ERP software, you can take appropriate decisions to expand your business. For example, if a particular product is consistently in high demand, you can plan to launch an extended line of the same product.
The inventory management system can assist in implementing cost-cutting solutions. For example, on the basis of product demand, the supply of raw materials, and currency exchange rates, you can adjust the selling price of the product. Moreover, you can analyze purchasing prices, compare them with the market rate, and negotiate with the vendor. As you can see, the ERP system is a lot more than a tool meant for checking inventory levels.
The Future Seems Bright
In the near future, the real-time inventory management system will become a necessity rather than an option. It will be an integral part of the business that will influence most of the business operations, right from manufacturing to the customer experience. Therefore, analyze your requirements and install ERP software to optimize your organization’s inventory management operation.
When she’s not hard at work, she can be found wandering, reading and just generally having a good time in life. She writes about software such as Project Management Tools and more.