4 Ways ERP for Inventory Control Can Make All the Difference
It’s not only inventory planners who seek out ways to optimize inventory management – everyone from CEOs and CFOs, procurement and supply chain management specialists, shop-floor employees and client-facing staff often find themselves wishing they were equipped with reliable, accurate inventory information to ensure both internal efficiency, fiscal optimization, and customer satisfaction.
At Discovernet, we have helped many manufacturing, pharmaceutical and biotechnology companies embrace the capabilities of Enterprise Resource Planning (ERP) software to address their inventory control needs.
5 key capabilities of ERP for inventory controls which can improve your business capabilities:
#1 Real-Time Visibility, Management & Tracking Tools
Stock optimization is a balance between running a lean inventory and ensuring key items can be replenished before they run out (impacting business operations).
ERP solutions provide businesses with a pre-built tool to help streamline all inventory activities – including end-to-end real time visibility, automated item allocation and replenishment, classification & tagging, possible substitutes, and more.
These tools not only help businesses reduce the amount of manual labour required to update and maintain their inventory system, but produce valuable data and planning tools that can help inform overall business strategy and planning.
#2 Warehouse/Supply Chain Management
ERP software can track items through an organization from entry to exit – from raw material supplied by a vendor to a finished product headed out the door into the hands of a waiting customer.
With the ability to access bin locations to pinpoint the exact location of items, warehouse operations are made more efficient. By tracking lot or serial numbers, stock transfers, quality checks, expiry dates and even re-testing lots can be completed quickly and accurately.
These activities and their outcomes are continuously recorded by the ERP, updating related systems and providing a centralized record for easy reference.
#3 Quality Control
An effective ERP package should allow the integration of quality management with all other business activities, especially inventory. And if it doesn’t, we can help optimize or program an effective integration tool.
By ensuring a consistent checklist for product faults (leaks, tears, broken seals, description errors, damage, expiry dates), an ERP solution can ensure all relevant details of a quality control check (including a pass/fail ruling) are recorded.
This data can be used to determine the any abnormalities in product control and pinpoint their sources – whether it’s spoilage, supplier issues, damage in handling, or otherwise. The result? You now know what steps are needed to address the underlying issues, and are able to eliminate poor quality products and ensure higher customer satisfaction.
#4 Inventory Planning and Reporting
Many ERP solutions provide the functionality of both the Master Production Schedule (MPS) and Material Requirements Planning (MRP) – deciding factors in procurement, scheduling production and material levels.
In addition to reducing waste and optimizing a lean inventory, your sales team can use the ERP package to access accurate information about what is being produced for customers and when items are expected to be delivered, backing up claims with solid data.
Step up your Inventory Control with an Expertly Deployed and Customized ERP Solution
While most ERP packages can provide adequate levels of functionality and reporting out of the box. But there’s rarely a one-size-fits-all solution. To get the most benefit from an ERP solution, it needs be implemented and customized to reflect the needs of your business.
As a leading IT Service Provider in the Greater Toronto Area, Discovernet has helped dozens of clients quickly customize and implement effective ERP solutions that realized immediate benefits – including those discussed in this post.
If your organization is looking for innovative ways to use data to improve productivity, cash flow and gain a competitive edge, Discovernet’s end-to-end IT services are an efficient and proven way to manage your technology needs.