Inventory control is dynamic and complex, requiring tools that allow for accurate, real-time management of raw materials, products, sources, and supply chain partners. Fortunately, the recent advancements in enterprise resource planning (ERP) technologies have improved the management and impact of inventory control.
How can your manufacturing ERP software enhance inventory control & speed up order fulfillment? By giving your employees access to real-time data that allows for better decisions, improved quality, and better customer outcomes.
While there are standalone inventory control and management software products, those that are integrated with your ERP solution are able to leverage the many benefits of having data collected and accessible in the same platform. As seen in the recent post, Strategic Guide to Planning Manufacturing Production Cycles, ERP solutions offer considerable upside to inventory management and many other areas of your manufacturing company.
Here are a few of the ways your ERP solution helps inventory control.
ERP inventory management helps you plan for replenishment ordering. By tracking parts and part categories, your ordering can be triggered by indicated or projected demand parameters. Other triggers can include price levels or other factors built into your system. ERP systems help reduce the quantity of orders and project the right timing for when orders should be placed.
Surplus inventory management
Inventory surplus can cause significant issues, from wastage to improper usage to cost considerations. With ERP inventory controls, surplus inventory issues can signal alerts and warnings requiring action. And with ERP integrating information from finance, sales, and operations areas, the decisions about what to do about surplus can be made with better information and collaboration as necessary.
Better order fulfillment
Market demands are pushing order fulfillment needs every day, as customers and consumers expect rapid turnarounds, low- to no-cost shipping costs, and transparency in the tracking of shipments throughout the transportation process.
ERP tools allow companies to build materials and complete kitting work, track serial numbers, print barcodes and labels, and manage SKUs. Other tools allow companies to value inventory on hand.
When companies have large amounts of inventory on hand, ERP tools also allow manage spend levels and manage cash flow.
Inventory analytics and management
Turnover is crucial for inventory management and profits. Does your company know all it should about what products and parts are moving? Are parts for just a few customers sitting on shelves longer than is financially prudent?
Understanding inventory dynamics helps manufacturers consider whether products should be purchased in smaller or larger quantities, improve shelf life conditions for products and ingredients, and determine optimal levels of items. You’ll reduce carrying costs, warehousing fees, and product maintenance.
ERP solutions can also provide better information about where products are using tracking and mapping tools that reduce the amount of time and expense in locating items in your inventory.
Better customer relations
Better inventory management results in fewer backorders, lost sales, and unhappy customers. Orders will ship more accurately, faster, with less processing time necessary.
At NexTec Group, we help companies identify the ERP solutions that meet their unique manufacturing needs. Contact us to see how NexTec Group can help in finding the vendor, product, and features that will drive improved operations.