Benefits of ERP Inventory Management

Inventory management is central to getting the results so look below at the four benefits of Inventory Management ERP.

Planning Replenishment Orders

Inventory management allows to properly plan the replenishment orders. ERP inventory management system allows to easily order the right quantity which is accurate. One item is ordered only when there is a specific demand in exactly the quantity to meet the demand. Another item is ordered when at a lower cost and easily procured. Optimizing replenishments means fewer transactions and that leads to better inventory accuracy.

Surplus Inventory Management

Inventory management ERP also helps in seeing and reacting to surplus inventory. Whether the surplus is caused by a decrease in some demand, ERP inventory management system will spotlight the surplus immediately. Should the item be returned? Can the customer be contacted and asked for another order to use up the surplus? There are many options when the surplus is quickly found and reaction is immediate.

Inventory Turnover Tracking

ERP inventory management system allows to categorize the inventory in many ways and to analyze whether the inventory assumptions are true.

Are the X parts turning over much more rapidly than the Y parts? Are parts for one supplier dusting in the shelves? Maybe it is time to rethink the relationship with that supplier. Can we buy in smaller quantities? These all questions can be clarified and verified if the Inventory Management system is in place.

Business Savings

Time and money is saved by using the ERP inventory management software. Organization using the Inventory system can lead to improved customer satisfaction. It also helps in combining the parts used for a particular order in nearby bins. ERP is easily used to improve inventory organization and the results can be much improved efficiency and better productivity in the stock room.