But every organization should be aware that multiple benefits come with having inventory improvement and management processes in place.
A lack of proper inventory management processes and procedures such as basic inventory record maintenance and documented inventory procedures can clear up any messy data in the system and provide a clean picture of the needs and future needs of the organization. Even though there have been enormous advances in technology and business processes in recent years, many manufacturers and distributors still cannot handle inventory accuracy issues in a “proactive” manner; this means going into a “reactive” mode. That (not optimal) position is due to a lack of proper inventory management processes, essential inventory record maintenance and documented inventory procedures.
Inventory accuracy and having the exact amount of needed inventory (i.e., not carrying too much at a time but having what you need when you need it) is potentially the most crucial success factor for most organizations.
Inventory can only be maintained effectively using the right processes and proper inventory management procedures and tools. Most inventory problems arise from slack reporting on transactions happening in real-time within the warehouse. So naturally, when an inventory issue comes up, the natural response is to react rather than fix the underlying problem.
The more innovative way to run a warehouse is to have documented processes that nip inventory issues in the bud before problems occur.
Warehouse operations proficient in managing inventory and maintaining accurate inventory records will have better order and demand management, more efficient labor effort, increased on-time deliveries and optimal storage space and equipment use. These organizations are more likely to outperform and succeed in today’s rapidly changing and competitive business world. Their peers who don’t emphasize optimizing inventory management will have a much more difficult time with their warehouse operations.
Today technology plays a role in just about every business process. If your company is still maintaining inventory data with legacy software, simple spreadsheets, or worse, pen and paper, you’ve likely realized that inventory management software can make inventory control and organization much easier and more accurate.
It’s not as complicated as it seems to go digital. The first order of business is to determine the company’s inventory needs and whether they can be met by a simple system (one that tracks stock levels and movements) or if a more complex approach is needed. For example, manufactured goods or goods that consist of sub-assemblies and multiple components require more complex inventory management systems that track inventory in real-time.
No matter how complex your inventory needs are, inventory management software will make it easier for you to track your inventory accurately. You can allow the right people to have access to that inventory, have an accurate record of inventory movement and get insight from inventory activity and history from any portable device in real-time.
Your inventory system is only as good as the data you feed it. That said, when selecting any new system, you must map your business requirements to your functional needs and then determine how well those requirements can be supported by competing inventory management systems. No two businesses are the same, and Oracle NetSuite’s industry-leading ERP software offers the power and agility you need to support the evolution of your business. By choosing a well-matched solution to your needs and your future needs, the organization will use the system to the total capacity. This is particularly important in inventory management, where more efficient inventory practices can mean huge time and cost savings.
It can also help to have a knowledgeable software consultant involved, especially if it’s your organization’s first time purchasing an inventory management solution. An expert consultant can help organize the implementation process, ensure it is kept on schedule, advise where needed and help with the digital conversion process.