Maximize Effectiveness using Enterprise Resource Planning Software Tools
Inventory management is all about making better decisions that result in better balance that depend on the shifting goals that are influenced by the reality of the events going on in the warehouse. This can be a complicated and daunting task if the right tools are not employed. Continue reading for tips on how to best utilize the tools available in your enterprise resource planning software.
Tools for Analysis
Inventory specialists can take data analysis functionality to a whole new level by integrating inventory optimization tools with existing enterprise resource planning (ERP) systems such as Sage 300 and Sage 100. These enterprise software optimization systems provide graphics that can illustrate the synthesis of data from all departments. These graphics can help analyze, diagnose, and identify seasonal demand shifts, order patterns, likely stock-out dates, lost sales, excess orders, unsellable items, price reduction patterns, and patterns of production downtime among many other capabilities.
The analysis done by an inventory optimization tool can then use this big data to forecast demand with greater accuracy and faster speed. Through this, the system can recommend optimal inventory levels for sales availability. It can take into account possible stock-out and overage risks giving managers the advance warning needed to take care of stock levels when they are becoming too high or too low.
Tools for Management
Managers need to know what is happening with inventory to best respond. Inventory optimization tools make this easy through recommendations given about optimal restocking schedules in addition to automated ordering and re-ordering. In addition to helping find and act on trends, the tools can also help alert managers of exceptions to these trends so they can mitigate them. Through integration with enterprise software such as Sage 300 or Sage 100, the tools communicate across departments and even outside of the organization using actionable intelligence. This can inform decisions about recommended stock levels, replenishment schedules, automated orders, and exception alerts.
Using these tools combined with management and inventory specialists making decisions based on the data and information provided by them, inventory optimization can be achieved. These decisions can help balance the trade-offs between the costs of a stock-out versus the costs of overstocking. Inventory management tools must adjust recommended stocking levels that are dependent upon variable risk tolerance. There is a balance to strike between pushing risk tolerance in the direction of avoiding stock-outs and having more inventory ready versus pushing management to stock as little inventory as possible to avoid storage and waste costs. The ability of an inventory optimization tool to adjust forecasts based on the “what-ifs” is a huge plus to management.
Inventory management is all about making better decisions that result in better balance that depend on the shifting goals that are influenced by the reality of the events going on in the warehouse. Tools that can improve balance provide a large and ongoing return on investment. The goal is to reduce inventory levels by 20 to 50 percent that results in significant savings. Because right-sizing is a complex challenge, cost control and customer satisfaction have become the focus. These are driving the adoption of more sophisticated systems of inventory management. By utilizing new, flexible, and refined tools that provide for dynamic optimization of inventories to maximize customer service and market share while decreasing inventory investment and lowering costs, inventory managers can significantly impact overall competiveness and profitability.
Download our whitepaper “Better Inventory Management: Big Challenges, Big Data, Emerging Solutions” for further information on the key processes involved in inventory management. Physical inventory control, inventory planning, and optimization of processes can enhance your company’s success.
Mindover Software has been providing award-winning financial management systems and consulting solutions spanning the business lifecycle to small and medium sized business. Now, with consultants in Dallas, San Antonio and Austin, Mindover Software provides strong local support with the resources of a national company. Learn more about two solutions we offer here at Mindover Software by clicking on the each solution: Sage 300 and Sage 100.
As a Sage Software Select business partner, we can align many of the world’s best software solutions to meet your diverse needs. In short, we are a company available on demand to meet your business goals for today and far into the future.