The Role of Inventory Management Technology
In parts one and two of our Enterprise Resource Planning (ERP) series, we discussed common inventory challenges and the process of inventory management, as well as the importance of the people behind those processes. In this final piece, we’ll dig into inventory management technology and why it’s important to consider and ERP system to help meet business needs and goals.
Managing Inventory Without ERP Software Solutions Can Feel Like an Uphill Battle
Successfully executing an inventory management process is a lot of responsibility and requires coordinating a variety of complicated tasks like:
- ordering and shipping supplies,
- collecting and receiving invoices,
- vetting and coordinating vendors,
- keeping up with supply and demand.
When working in disparate systems, keeping track of this critical information is difficult, and important decisions are often made based on unreliable information. So what’s the role of technology in inventory management? ERP inventory management systems reduce human error and enable accurate forecasting and budgeting, all while helping to manage seasonality, demand, lead time, overhead, and total cost. The Power Using an ERP Inventory Management System as a Single Repository
A corporate ERP system, like NetSuite or Microsoft Dynamics 365, contains all company-wide information surrounding inventory management processes and is housed in a single repository (often referred to as a perpetual inventory system). ERP inventory software acts as the source of truth, and the inventory management data collected from multiple channels (internal, external, online, in-store, etc.) should all feed into the ERP platform. Having a central space for this information contributes to the reduction of human error, allows for a record of historical data, and makes it easier for everyone involved in the inventory management process to do their jobs.
How ERP Inventory Management Technology Transforms Businesses
So, why is ERP inventory management technology so important? Because it allows for the automation of inventory processes, and automation enables organizations to do powerful stuff. Investing in corporate ERP inventory software can help businesses:
- Save time, money, and human capital
- Access real-time data for actionable decision making
- Analyze sales patterns and market trends to accurately forecast
- Track both electronic and physical data points
- Reduce manual intervention and human error
- Prepare the business for the unexpected
With an automated and efficient ERP inventory management system in place, organizations have a better chance for long-term profitability and survival.
Contact us online with questions, or give us a call at (646) 604-4193 to get a walkthrough of our ERP services.