Building a Stronger Business with Better Inventory Management
Data is the foundation to building a stronger business. If you have accurate data, you can manage your inventory efficiently and grow your business. If you pair a fantastic ERP system—like Acumatica ERP—with inventory management software, you will be on track to build a great foundation for your business to grow from.
Inventory management is a straightforward, simple process. You mark goods in your warehouse and cross them off when they leave. But today’s warehouses are a far cry from ye olde dry goods store. Today, your warehouse may have thousands of SKUs instead of 16 different sacks of flour and wheat as in days of yore. You need automated inventory management systems.
Inventory Data Married to Big Data Equals Smart Business Planning
Once you have your inventory data, it’s of no use to anyone unless it’s married to other data streams. These data inputs, when run through an ERP system like Acumatica, can provide you with actionable insights that you can use to build your business.
Some insights that you can gain from better data management and inventory data include:
- Improved inventory accuracy by reducing manual data input and updating stock counts automatically
- Elimination of redundant orders
- Reduction in excess inventory
- Proactive planning to reduce overstocks and shortages
- Improved demand forecasting
- Reduction in “stale” or old inventory, especially in industries in which FIFO is important
Steps to Improve Inventory Management
There are four simple yet proven methods of better inventory management that you can use to increase profits and reduce costs. These include:
- Maintain accurate and timely records: Both accuracy and immediacy are necessary for manufacturers to control inventory costs. You need to know your stock count now, not yesterday or last week, in order to provide accurate information to customers and suppliers. Automating your inventory processes and data retrieval can enhance both accuracy and timeliness of data.
- Proactive planning: Once you have inventory data, you can begin to see patterns and trends that lead to better predictive ordering. The better you get at proactive planning, the better you can fulfill orders and keep customers satisfied.
- System improvements: It’s not a “once and done” process. ERP systems and inventory management together can help you spot areas for improvement. Steady, incremental improvement makes your business more competitive and effective.
- Reducing fixed overhead costs: Maintaining warehouse space can be expensive. Between leases, building maintenance, energy costs and more, the fewer you need, the better. When you can predict inventory levels with greater accuracy, you no longer need to keep as many items in stock. You can reduce the amount of inventory space needed and save on fixed costs.
The more complex your manufacturing and warehousing needs, the more complex the inventory control and ERP system requirements. But implementing one or both can, in the long run, save your company a great deal of time and effort while improving profitability. As your company becomes more efficient, the cost savings can be channeled into other projects that can grow your business.
We’ve put together a free gift for you, a white paper from Acumatica filled with expert insights and proven inventory strategies. Five Tools for Inventory Management is available at no cost to you.
We offer consulting to help businesses choose the right software for their needs, as well as to help our business customers get the most from their software investments. Acumatica ERP and many other software solutions can help you get the most from your business intelligence data. Contact Mindover Software today to learn more. Visit us online or call 512-251-8992.