Enterprise Resource Planning (ERP) Inventory Management Overview
Enterprise resource planning (ERP) inventory management is a system that a business can use to manage all of its finances, logistics and inventory in one place with one piece of software. The prospect of being able to do this is tremendously appealing to many business owners. To decide whether it is the right solution for a particular business, it is a good idea to understand what ERP has to offer. Here is a look at some benefits of ERP inventory management.
A business with its operations managed using a centralized system saves time in various ways. For example, it allows the organization to automate many of its daily tasks thus boosting productivity and reducing errors.
The more efficiently a business is run, the more money its owners save. Rather than paying for resources and systems to handle different aspects of the business, an ERP inventory management system handles multiple areas of a business’s operations at the same time. This results in less work being performed and a reduction in costs.
Supply Chain Syncing
If a business is outsourcing its shipping and logistics needs, an ERP inventory management system can integrate with shipping providers’ back-end systems. As a result, all systems will have the capacity to communicate with each other so that information can be synced throughout the supply chain. For example, order and shipping information syncing will be possible with an integrated ERP system.
Effective Data Collection
ERP inventory management systems will be able to draw on information from multiple sources to provide business leaders with sales and inventory reports. Decision-makers will get the ability to customize these reports to monitor their business’s performance. They can have information such as goods sold by channel and location along with the performance of different SKUs. An ERP system will also keep track of inventory and make it possible to get information on shortages and deliveries. ERP systems keep track of inventory, along with factors like excess goods and turnover rate.
The data that a business can get from its ERP system makes it possible to see inventory status. This means that staff can keep an eye on how much inventory is available. Customers and partners will be able to do this as well. It will also be possible to see how much inventory is on order.
By automating processes, an ERP inventory management system can make a business’s expansion far simpler. The development of more efficient and streamlined systems simplifies the process of scaling up.
Inventory management should be one of the main priorities for a business. Disconnected systems will not be able to provide the same insights that an ERP system with strong inventory management features can deliver. Not only will it enhance the ability of a company’s leaders to make good decisions, but features and resources can also be added allowing it to grow with the business.