Inventory issues are a part of every business. Managing inventory is one of the most important parts of a business management as it is the staging area that makes your store. If your store area is a mess with no systematic order, missing items, etc the appearance of your business will be a mess as well. But it is also one of the most common problems that a business faces as all the other departments take up the time and inventory is left behind. But if you think carefully it is one of the most important department because inventory takes care of the production and item storage which is the main ingredient in a business.
We walk in into a store and look for our favourite item but the person in charge tells us that it is out of stock, this incident happens a little too much in every store and a little too often with everyone. It gives your business a poor image if a customer finds it happening too many times while visiting your store. There are also times when the item is available but is misplaced and you have to go looking for an item all over the place.
This creates chaos in the business as their is no harmony among the departments and in the flow of business.
As there are many business solutions hence there is a solution for inventory management as well. ERP (Enterprise resource planning) is a software that takes care of every department and your entire business hence you can use it for managing your inventory for a smooth run of your business.
Focus on these 4 simple steps to manage your inventory with ERP
The inventory management system in an ERP software is capable of analyzing, diagnosing, and identifying:
- Seasonal shifts of each item according to its demand
- Lost sales
- Excess orders
- The pattern for large orders
- Slow moving items that aren’t making profit
- Items in need of disposal
- Performance of the suppliers
- Patterns of the production down line
Once the inventory is set you can track your items in your inventory. You can see the number of goods coming in and leaving. As the billing is done you get an update of the number of each item that is sold. In this way you are aware of how much item is sold out and how much you have in your inventory. Using ERP’s inventory management system you get the accurate amount of items being sold and the number of item still left in your store. Therefore you are aware of your accurate number of items leaving your store everyday per billing.
- Stock optimization
Know which products you are to keep in hand and select the product availability warning level for each product. So you are aware before hand when to stock the warehouse with these certain items. And it will spare you from running out of stocks.
Get to know the market trends which products are being bought more, what is currently being everyone’s favourite and what is in demand which will gain you better business. Find out about your competitors using market research identify the type of items required for every type of market and collect knowledge from economy forecast.
ERP inventory management optimization will automatically help in calculating inventory investment and help in the reduction of the expenses being spent on the inventory, which is predetermining the management objectives.
The inventory management tool makes recommendations about restocking the goods it also recognizes exceptions and alerts the management when necessary to prevent any kind of unpleasant surprises waiting and reduces its effect by keeping them aware of it. It acts like an intelligent tool for managing the inventory. The recommended stock level, replenishment schedules, automated orders and exception alerts are communicated cross functionally and to the stakeholders outside the organization.
Reach Accountant is an ERP software that takes care of every department and its features include inventory management . It takes care of your inventory in a way an inventory manager would and updates all the details to you in real time. It updates you about the product sold out therefore you know how much is still available and also shows you what has to be shipped and what needs to be received. Reach is accessible from anywhere and also comes as a mobile app hence you can keep a check on your inventory even when you are out of station.
You are made aware of the availability of the product as the number of sold items and the item available follows up each other. Hence you stay alert before you run out of stock and you have a smooth flow without any bumps in your business.