How an ERP System for Inventory Control Can Help Eliminate These Common Problems?
In manufacturing and distribution, knowledge and control over your inventory is a key driver of efficiency and cost savings. Inventory control (a.k.a. stock control) can be defined as “the fact or process of ensuring that appropriate amounts of stock are maintained by a business, so as to be able to meet customer demand without delay while keeping the costs associated with holding stock to a minimum.”
But when the number of items and physical locations organizations must keep track of grows, manual, error-prone methods of inventory handling become quickly unworkable.
4 Common Issues That Can Be Solved by an ERP System for Inventory Control
When our ERP consulting services are called upon to support an Enterprise Resource Management (ERP) implementation for a client, we noticed that clients with a failed (or lack of) ERP system face the same common issues:
1. Stockouts of products
Nothing can be more frustrating than being unable to find a product when your current system shows you should have some in stock… somewhere. This leads to backorders, lost sales opportunities, and dissatisfied customers
2. Product surpluses
We’ve seen this happen frequently in organizations with multiple branches – one branch will be out of an item and order more in, while in a nearby location, already purchased stock is waiting on the shelf. Instead of keeping inventory lean by transferring already-purchased items to where they are needed, locations are siloed and running up unnecessary costs
3. A lack of inventory level knowledge
When primitive methods like spreadsheets and manual tracking are used, the numbers in the system quickly fail to reflect the reality in the warehouse. And making corrections becomes a herculean labour and time-intensive task
4. An inability to locate materials
Usually related to number 1 or 2 above, inventory control is more than just knowing how much of something you have; it’s about knowing exactly where it is. Without this knowledge, time is wasted physically searching for items, delaying deliveries and work.
Left unchecked, these inventory management issues can damage the relationships your company has with its customers, vendors, and suppliers. And over or under-stocking items will create a cumulative negative effect on your finances and overall business health.
Gain Control and Visibility with an ERP Solution
Now imagine there was a way to obtain control over you inventory. You can deliver products on time, track the location of your materials, and optimize your stock levels to minimize waste and maximize cash flow.
Optimizing your inventory management should be the objective of every inventory planner. Whether it’s a built-in module or the functionality to integrate with a discrete program, 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 overcoming those four common issues that we’ve seen again and again.
Our team is “ERP Agnostic” – while we may recommend the kinds of functionalities your business should be looking for, we have experience successfully working with a variety of ERP software packages such as Oracle’s Netsuite, Progress Software, SAP and more.
With extensive experience providing end-to-end IT support and advisory services in the manufacturing sector, our goal is to leverage technology to improve the efficiency, productivity and profitability of our client’s businesses.