If your business holds inventory, you’ll know it’s one of the most expensive assets you have. But you’ll also know it’s only an ‘asset’ if it’s making you money, and stock that’s collecting dust in a corner isn’t doing its job. If you can get a handle on inventory control, you’ll be squarely in the driver’s seat when it comes to controlling your costs.
An effective inventory management system can help you identify the latent potential of the stock on your shelves, and unlock opportunities to save money, improve sales, boost productivity, and even plan your future. Take the drudgery out of managing stock, and free your cash and your staff, to create more value for you and your customers.
Keep things ticking over
Just In Time (JIT) supply means you order just the amount you need at the time you need it – no excessive malingering on warehouse shelves; no excessive freight costs for rush orders, and this is just the first of many benefits to running an inventory management system as part of your ERP platform.
Regular reports and other business intelligence insights help you stay on top of stock and supply patterns across set time periods – like seasonal changes – and help you predict staffing, ordering variances, and even foreign exchange fluctuations. All of this combines to give you a clearer, more accurate picture of what’s happening with your inventory so you can turn stock over more effectively, reduce waste, and eliminate unnecessary costs.
An effective inventory management system will provide you with access to quality historical data, helping you to make more informed decisions at key points in your supply chain.
Plus, they can provide automations for critical processes, like ordering. Using JIT principles, you can set the system to automatically re-order different lines once they hit a critical level – aka ‘safety stock’. Automation reduces the chances for error, and frees up your staff for more fulfilling and value-adding work.
Fewer errors + happier staff + better productivity adds up to a much healthier bottom line for your business.
Reporting and compliance
Having everyone from the warehouse floor to the executive suite working from the same information, in real-time, means every decision can be made with clarity and confidence. Warehouse and sales managers can see what is happening throughout the supply chain; they can see the same profit margin information as the financial controller, and make decisions about what targets they need to hit, and which products they can package together.
Executives can make more effective decisions about how best to meet regulatory requirements and achieve best practice standards. Operations and governance become more effective and responsive, as company leadership always has a reliable, up to date source of information as a foundation for future growth and development strategies.
Set your cash free with the right numbers
Using an inventory management system isn’t just about knowing what stock is where and how long it’s been on the shelf.
- It’s about knowing what moves, and how;
- It’s about relieving your staff from the ‘burden of boring’ (which can introduce errors as staff lose concentration from sheer repetition), so they can focus on more valuable work.
- It’s about keeping on top of your game – both operationally and managerially – by making more effective decisions that are based on real-time data. (We went into depth on these key points in “How Effective Stock Management Affects Cash Flow”.)
Yes, it’s about using quality data to boost your cash flow, but with cash flow comes choices, and the power to take your business forward along the path you’ve envisioned.
Empowering your choices with ERP
If you’re over searching through piles of reports for the latest data (and it never being quite up to date when you find it), it’s time you thought about inventory management.
At Exobiz we have extensive experience in helping businesses figure out the right ERP options for boosting productivity and cash flow, and building systems and capacity so you can expand. Get in touch with one of our team today to talk about how we can help cure your inventory ailments.