To streamline business processes and achieve a high level of customer satisfaction, it is important to have the right product at the right time in the right quantity, and in the right place. These rights result in happy customers, satisfactory inventory turnaround times, and higher profits.
Therefore, it is critical to efficiently manage business inventories. So, what is inventory management?
Inventory management is the planning for the ordering, storing, and transporting of a company’s physical products to ensure the right type and quantity of stocks are available when required. This comprises the management of raw materials, additional components, and finished products. Inventory management also includes warehousing and processing of these items from the time of production to delivery.
Mismanagement of inventory can be disastrous! Inefficient management of inventory can result in excess inventory, inventory shortages, dead inventory in stock, and high inventory turnover time.
Overstocking can result in cash being blocked without return benefits and adversely reflecting on the balance sheet of a business. Alternately, understocking results in nonfulfillment of customer orders leading to disappointed customers and a fall in sales.
An ERP Integration for Better Inventory Management!
For fine-tuned inventory management processes, an ERP system plays a significant role. It facilitates improved decision-making by manufacturers, distributors, wholesalers, and retailers; and provides accurate inventory data and greater efficiency of operations. This is mainly possible as all key information for managing a business is collected in one platform. Furthermore, ERP systems automate the various functions of a business related to inventory management so that stock purchasing, ordering, organizing, and transferring are synchronized and streamlined. ERP systems also allow enterprises to maintain stock inventory at optimal levels by tracking customer demand and aligning with vendor requirements for order delivery.
Precise inventory management supports a business to prosper, while mismanagement can bring untold troubles and stung business growth.
The 9 Benefits of Investing in IBB-ERP for Better Inventory Management
1. Real-Time Access to Inventory Data
Delays at any stage of inventory management from production and transportation to order and delivery can disrupt the whole business process. Our cloud-based ERP system is enriched with real-time access to data keeping workers updated throughout the entire inventory management process resulting in timely management of the production process, and supply of a business’s products.
2. Enhanced Coordination Among Various Channels
Inventory management is not limited to the warehouse. Products are dispatched to many wholesalers and retailers at stores in different locations and sometimes even directly to the end consumer—think of Amazon’s services. A smart ERP system will ensure tracking of the delivery and traceability of the stocks. Due to real-time access to information, ERP fulfills the cross-channel inventory requirements simultaneously, overcoming delays in supply and delivery without the hassle.
3. Maintaining the Right Levels of Inventory
Ensuring that inventory is maintained at the appropriate level can be challenging, as even seemingly minor oversights can have disastrous consequences. Achieving optimal inventory levels requires effective communication across multiple departments and an awareness of current market trends and customer demand. Fortunately, implementing an ERP system can help streamline this process. With an ERP system in place, businesses can easily track their products and monitor expiration dates to ensure that items are sold before they go bad. The system also tracks demand and supply for all products, regardless of location, and enables prompt response to customer orders.
4. Minimizing Costs
Yes, implementing an ERP system incurs a one-time cost, but the long-term benefits are many. One is the reduction in working capital and overhead costs. As mentioned previously, ERP solutions with the right inventory management system maintain optimal inventory levels. This avoids instances of overstocking and understocking and eliminates unnecessary financial blockage. Risks of theft, product obsolescence, or damage are also reduced. Additionally, good returns can also be reduced. As automation comes into play, organizations can also reduce labor costs. Thus, minimizing the operating costs of a business even while the business expands.
5. Automation to Facilitate Reduced Human Errors
Performing inventory management manually can increase the risk of errors and mistakes, which can lead to higher rates of returned goods. To eliminate such issues, it’s beneficial to invest in an ERP system that has a customized inventory management system tailored to meet the unique needs of your business. Additionally, using features such as RFID and barcode scanning can automate routine tasks like invoicing and order management, further reducing the potential for errors. This automation helps free up employees from repetitive tasks, allowing them to focus on other important aspects of the business.
6. Tracking Turnaround Time
Inventory is often referred to as money sitting in another form, emphasizing the importance of tracking the time it takes for products to sell once they reach store shelves. The faster inventory sells out, the better it is for a business’s profitability. Our ERP system can provide detailed data to help businesses understand which products are selling well and which products are taking longer to sell. This will help to improve the restocking process. This information can also help companies plan their pricing, promotions, and discounts, especially if sales are not meeting initial forecasts. By using an ERP system with an automated inventory management module, businesses can make informed decisions that positively impact their bottom line.
7. Automated Quality Checks
Ensuring the quality of products is a key aspect of good inventory management. Many products must meet pre-defined industry criteria on quality and safety. An ERP has the capability for organizations to set parameters for quality checks as relevant before a product is marketed for consumption. An ERP that is designed to do so, can also notify in case of non-compliance so that appropriate fixes can be made without delay or any adverse impacts.
8. Forecasting and Report Generation
Forecasting assists businesses in making precise decisions. A strong ERP system provides instantaneous information about top-performing products, location-wise sales generation, related costs, market trends, seasonality, and so forth. An ERP solution that is developed well is smart enough to compile all such data in the form of reports enabling organizations to analyze data to improve weak processes and business functions.
9. Improved Customer Satisfaction and Loyalty
As inventory management improves, customer satisfaction will also increase. When goods reach on time and when consumers receive the products(s) they ordered, the overall impression of the business and brand rises. As customers have ample choice of supplier or retailer for any product they want, ensuring your business delivers them the product of their choice is the key to sustainable success. Selecting the right ERP system for accurate and efficient inventory management will enable businesses to increase customer satisfaction and loyalty, which are crucial for long-term success.
IBB Delivers a Value for Money ERP with Effective Inventory Management
Considering the various benefits, the IBB-ERP system provides in terms of inventory management together with the range of other features and functions offered, contact us if you want to know more about the IBB-ERP cloud system.
We believe in serving small and medium-sized organizations to enable them to grow as per their plans by offering a tried-and-tested ERP solution that has reaped great cost savings for our clients.
Thus, using state-of-the-art technology, we have integrated critical business functions in our ERP system as a single platform solution for all.
Remember! We offer a competitively priced cloud ERP solution that is user-friendly and provides advanced automated solutions for inventory management, CRM, order management, warehouse management, and delivery management.