Inventory control is vital for survival. At its most basic level, your company may have excess inventory or run out of stock if this is managed badly. Good inventory control means that the right products are on the shelves at the right time, in the right quantity, with no excess or obsolete inventory.
Optimum stock control maximises profits with minimum inventory investment, while ensuring you have the right stock available to meet demand and ensure customer satisfaction. It is also about knowing where your stock is, available product quantities, and ensuring that they’re stored correctly.
Issues and inefficiency
Without the right tools in place, the job of the inventory control manager is very difficult. So many companies still rely on spreadsheets to manage their stock control, but the reality is that this is making additional work for staff. Repetitive, manual processes and duplication of data between systems contributes to inefficiency and additional costs. Lack of insight into stock levels can cause hold-ups in the sales and distribution process, while incurring unnecessary overheads.
Inventory control is such an important contributor to an organisation’s efficiency and profitability that it doesn’t make sense to rely on error-prone, manual methods, when there are so many systems available to automate these processes.
An integrated ERP system, such as SAP Business One, can resolve many inventory control issues and provide a streamlined solution to automate manual processes. Some of the inventory control issues an ERP system can help with are:
• Reducing stock-outs of products, which can result in lost sales, backorders and dissatisfied customers.
• Reducing excess products in stock, which increases overheads and the financial impact of having unsold goods or unused raw materials taking up space, or the potential wastage of raw materials passing their expiry dates.
• Insight into product availability and where stock is located, avoiding time wasting and reducing inefficiency.
• Reporting facilities which provide detailed insight to support strategic decisions.
Optimising inventory control
Optimising inventory control also contributes to positive customer and supplier relationships. Being able to fulfil orders on time and communicate effectively with customers increases customer satisfaction and positively affects your reputation, particularly in an increasingly competitive market. SAP Business One provides real-time inventory visibility across the operations and supply chain, providing detailed insight to support decision making and further optimise inventory management.
It gives businesses the ability to manage different types of items with straight-forward tagging, classification and item analysis. Multiple units of measure, stock and bin location, valuation methods, product expiry dates, batch numbers and serial tracking are easy to manage, providing real-time visibility and effective analysis and control. ERP software enables you to maintain accurate inventory levels, with insight into when new stock needs to be ordered, avoiding unnecessary wastage and decreasing overhead costs. It also reduces the risk of running out of raw materials during the production process, improves accuracy of orders and helps with forecasting future stock requirements.
Automating inventory control with an ERP system, such as SAP Business One, should be a priority for any growing business. The detailed insight that a system like this provides will help future-proof the business and set it up for the long-term, with the information it needs to optimise its inventory control, reduce overheads and support strategic decision making to help it compete successfully in an ever-changing market. For more information on how SAP Business One can help your company optimise its inventory management, please contact our friendly team now.
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