SMB Manufacturers Guide for Budgeting an ERP Project

Inventory management software helps organizations identify what quantity of stock is required, how much, and at what time. Managing stock on spreadsheets, manual order placements, and the process of hand-counted stock levels are replaced by advanced inventory tracking software. It simplifies the ordering, storing, and using of inventory by automating business management, demand forecasting, and accounting.

Inventory management is important for a company’s health as it eliminates the risk of under-stocking and overstocking. From saving money to improving cash flow, and ensuring customer satisfaction, the inventory management system delivers significant scale advantages.

Traditional inventory management system becomes problematic as the organization grows. Sometimes, manufacturers may order more quantity required to fulfill an order, or sometimes they may order less. Lack of forecasting leads to hindrances in the cash flow. In a world where every task can be automated, it is better to look for software that can not only manage your inventory and warehouse but also ensure streamlined workflow with connected systems.

Let’s see how an inventory management system can help your organization flourish.

1. Increased sales

With a systematic approach to inventory management, you cannot lose out on missed sales. With real-time inventory tracking, the team can see what is selling well and place orders for more inventory before it is finished in the warehouse.

2. Scalability

You don’t have to depend on longer manual counts with a modern inventory management solution. Keep track of your stock in all locations and ensure seamless integration with ERP with inventory management software integrated into it.

3. Reduced errors

With automation and connected systems, there are fewer chances of human errors and miscalculations. With reduced errors and quicker inventory tracking, productivity, and efficiency increase.

4. Faster deliveries

Optimal inventory on hand ensures order fulfillment and ultimately customer satisfaction and retention. So, no more missing out on orders and deliveries due to out-of-stock items.

5. Improved productivity

With organized products based on demand, workers can spend more time on profit-making activities rather than mundane tasks. Inventory management systems ensure replenishment of orders whenever required.

6. Greater visibility and reduced cost

Access to real-time inventory levels helps manufacturers spot problems. The modern inventory management system allows them to see safety stocks, cycle counts, demand planning, and re-order points. AI and Machine Learning technologies help them get better pricing. It also cuts down expenses to store items.