ERP Implementation Fuels Easy Inventory Management

Inventory management is of vital importance in to getting the expected results needed from the ERP implementation process in businesses. The efficient control, organization and estimation of stocks in inventory benefits companies of various domains especially in distribution and manufacturing to decrease investments, comprehend demand and keep a check on their supplies.

Although inventory management echoes simplicity when talked about, it is actually much difficult and multifaceted in practice. The leading ERP development company in India provides business the accurate inventory management systems integrated with all the other departmental modules for smooth functioning.

Inventory Management

Inventory management means the process of managing the record of the stored goods, commodities etc. manufactured, the raw materials needed to do so, maintaining a list of the delivered and returned goods, along with the record of volumes, quantities and time records. It is a major component of the supply-chain network.

Efficient inventory management is indispensable for ensuring a commercial establishment has sufficient stock in hand to fulfill the needs of the customer. If inventory is not managed appropriately it can lead to a business both losing the opportunity to gain potential profits or wasting money by hoarding too much in the inventory. A well-built inventory management system integrated in the enterprise solution of a business can always help check and avoid these mistakes.

The best custom ERP development company in India develops tailor-made enterprise solutions that take care of control and management of the entire inventory functions of both small and big manufacturing businesses.

Benefits of ERP in Inventory Management

An ERP solution can help establishments capitalize on their inventory investments by presenting a clear outline of records and information and their process of integration with the other existing departments like purchase, accounts and billing. Businesses can observe analytically inventory performance and evaluate results.

Here are a few benefits that a business can have implementing ERP in inventory management practices:

Planning the Renewal of Stocks:

Inventory management permits businesses to design a proper plan to renew the necessary stocks. Businesses must keep a detailed account of whatever needs to be ordered to refill the stocks and what is depleting. They must also keep exact records of the volume or quantities needed the time frames and also maintain a calendar giving precise details of when the need to refill would arise next. They must also maintain the stocks guaranteeing safety and security of location and warehouse conditions.

Managing Excess Stock

There are times when the inventory will witness a surplus of stocks caused due to a sudden decrease in demand or because the customers did not find it economical to buy. With a good ERP based inventory management system this will be immediately brought to notice and it becomes possible to think of alternative ways to place another order or contact the customers.

It will be possible to utilize the excess stocks only when the situation is discovered immediately after the stocks return back to the warehouse. A delay will lead to employing additional investments and resources to either hoard the stock for long or just pile them to trash!

Cost Control

Enterprise solutions focusing on inventory management can understand costs and margins to get a clearer picture of gainful pricing. Inventory managers can present projections depicting volume and price to suppliers to build more profitable returns. They can project what quantity is needed and for what duration, optimize hoarding space in warehouses and cut down additional expenses on inventory control and operations.

Moreover, since the entire inventory management can be automated due to the use of the ERP solution, it will naturally decrease the deployment of huge human resource to do it eventually saving money for the business. The most proficient enterprise application development company in India develops efficient solutions that make managing inventories a very easy task with automation.