Getting Serious about Inventory Management – An ERP system is a must

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There are many aspects of your business to manage; from employees to accounting, to sales to shipping. So many moving parts, any of which could make the difference between success and failure. Among these mission critical items, inventory management is one of the most important. Being able to receive, inspect, stock, count, locate, pick, ship and track reliably are crucial to any viable distributor or manufacturer. And…of course, being able to value that inventory may be the most important consideration! Companies with sound inventory management capabilities, pro-actively know what needs to be ordered, built, and shipped. Operations of any size cannot achieve this without a good ERP (Enterprise Resource Planning). So why not consider a GREAT ERP!

A great ERP will make a huge difference. Paperless transactions, RFID’s, barcodes, customer portals are better now than ever in processing transactions and identifying “on-hand”. This information is acquired quickly, efficiently, and accurately. With inventory management, you can gain the insight to make better and more timely decisions. This will save you money and retain customers. Who doesn’t want that!

What is inventory accuracy?

Inventory accuracy ensures the right balance of stock in your warehouses. To achieve inventory accuracy, you must have a systematic approach. Without this, you should expect:

  • Higher operating costs
  • Poor customer service
  • Product obsolescence or spoilage
  • Unnecessary storage costs
  • Poor stock levels (too much….or too little)
  • Frustrated employees

For a truly systematic approach, an ERP is a must. A great ERP (like SAP Business One), is a competitive differentiator. Such an ERP connects varying business functions – production, finance, sales, inventory, purchasing and more.

A widely used ERP system helps many companies manage inventory. Features include automation enablers like label printing, directed picking and put away, barcode scanning, and more. This makes it easier to buy materials, choose which payments to make, choose which suppliers to chase, decide where to store products, and more. You may manage sales, purchases, quality controls, lot monitoring, cycle counts, inventory operations, financing, accounting, etc. with a single comprehensive system. ERP enables planning, reporting, and forecasting and assists in reducing errors and delays.

Just as important an ERP tracks counts and values, providing employees, owners, auditors, lenders, and suitors with clear visibility into financial health. This prepares you for audits.  If numbers are suspect, chaos isn’t far. Avoid Chaos. Get serious. Get a great ERP!

If you are ready to take control and leave behind uncertainty, Acuity can help you. Contact us today for a better way to manage your inventory.

Joseph Timmins

Author