In today’s world of extreme automation and unbelievable technological advancements, the thought of managing warehouse inventory without Enterprise Resource Planning (ERP) seems funny to me. If anyone asks, is ERP Important for Warehouse Inventory Management? I would rather say ERP is not only important, but mandatory for effective warehouse management.
Managing inventory at warehouse or at distribution centers can be a task if done manually or through excel-based methods. Operating at multiple locations further introduces complications with chances of errors in labelling, bin location or stock levels surfacing prominently. At the end of the day you get frustrated employees, dissatisfied boss and unhappy customers.
There are innumerable reasons why ERP is important for inventory management. Read on to know the top seven.
- User friendly & comfortable interface: Instead of employing disintegrated systems and operating on separate databases, ERP offers a unified solution with common and comfortable platform to manage all inventory operations. Thus, the data is always real-time, untwisted and offers a single version of the truth.
- Eliminate redundant data: Automatic in/out data entries keeps errors and data duplications at bay. ERP is certainly meant to simplify the data complications you face, but more than that it helps in controlling wastage by always giving the current status and also the correct status of inventory.
- Easy and timely procurement: ERP facilitates planning of your replenishment orders based on the threshold inventory quantity. Order consolidation and bulk ordering is yet another sparkling feature of ERP that enables you to make timely procurement and get special offers or discounts.
- Surplus inventory management: Extra inventory is dangerous for two reasons, one, it holds the space and two, the extra cost is incurred in its maintenance. ERP spotlights the surplus immediately by generating alerts about the surplus, slow moving and items close to expiry, enabling you to take timely decision for clearing the same.
- In-depth inventory analysis: Since there is a single database, all the information is gathered at a common place. At any moment of the day you can get what, how, when and why of your inventory within minutes. The product movement analysis based on the shelf life gives you the actual picture of the turnover. Better informed decisions can be made with trend analysis and by discovering your competitor’s moves in advance.
- Accurate demand forecasting: ERP aids in projecting accurate forecast that saves the efforts of the sales team and leads to ordering of adequate amount of raw materials as well as scheduling material production quite in advance. Last moment orders can be fulfilled with this, making your customers happy and encouraging repeat business.
- Waste management: Targeting waste in your warehouse can be a source of substantial cost cutting. If you really wish to win over the competition by reducing the cost of inventory, then ERP is surely your way to rescue.
It is never too late to start. If you haven’t started using an ERP for managing your warehouse, adopt the technology today and experience the above benefits.