3 Benefits of Integrating Inventory Management and ERP
Previously, we took a look at the need for and benefits of incorporating inventory management software that integrates with an existing ERP solution into your warehouse management system. These benefits include the elimination of data entry errors, saving valuable time, one system that offers lots and lots of valuable features, simple implementation, and a single database that can be fully integrated. To learn more about these benefits and how the software works, please visit here. The last benefit listed, a single database that can be fully integrated, is such an important feature that it is worth exploring further.
Instead of merely interfacing a database with an ERP software solution, integrating directly with the ERP system is important. It is highly advantageous to truly integrate and instead of partially integrate by using a single database for inventory control. In this case, there is no second database to maintain and no second system to reconcile because they are seamlessly integrated into one. One example to illustrate this is when thinking of sales transactions. With a fully integrated system, a transaction that is posted to your inventory management system is automatically posted to your accounting system as well in real time. Let’s take a closer look at the benefits of true integration between your ERP and warehouse and inventory management solution.
Three Benefits of Truly Integrating your Inventory Management Solution and your ERP Software
1. Elimination of redundant data
There is always a possibility of needing to reconcile data whenever multiple databases are storing information. What do you do when there are discrepancies between the inventory numbers being given by your Warehouse Management System (WMS) and ERP system? How do you know which system to trust to give you the accurate data? If there are data discrepancies, it is likely staff members are making decisions based on false information. This could be costly on many levels. With a fully integrated system, you no longer have to worry about this happening. Instead, your inventory information is updated directly into the ERP system. When transactions are processed in the warehouse, they are validated by the inventory management system and updated automatically on the ERP system in real-time. Without multiple sets of data to reconcile, you won’t have to face inventory discrepancies in the future. Not only that, but everyone has access to the most accurate information whether they are in the warehouse or in the office.
2. Individual selection of modules so you only get what you need
WMS systems that employ a separate database often demand that you process all inventory transactions through their own system. In order to be able to do what is necessary, in this case, you will have to purchase a package that offers all possible functionalities even if all of them are not necessary for your business. Through direct integration with ERP data, inventory management systems can implement a mix-and-match of only the necessary modules. This includes the ability to ship inventory and use ERP systems to receive inventory. It offers the flexibility to sometimes ship orders with scanners but also allows for this to happen using an ERP system. The method by which the data was updated does not matter when the same data is integrated across the board. As needed, modules can also be added.
3. Easy-to-use, simple and comfortable interface
Instead of needing to learn entirely new systems to maintain inventory when using separate databases, you and your staff can instead continue to leverage your investment in your ERP expertise while also benefitting from the improved efficiency of inventory management. This eliminates a need to learn new interfaces, data structures, or reporting.
There is no need to waste time learning a completely new system or reconciling disparate systems when all you need is a fully-integrated warehouse and inventory management system that incorporates seamlessly with an existing ERP software. Don’t get stuck in a costly endeavor of getting two new software systems (one ERP and one WMS) or pay for modules that you don’t need. Instead, contact us here at Mindover Software to find a warehouse and inventory management solution that will work for your company’s needs and will truly integrate with your ERP software.