The Top Benefits of ERP Inventory Management System – Eximias

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Benefits of ERP Inventory Management System

How to effectively manage your business resources in the modern era?

If your business is struggling with:

  • Supply chain management
  • Human resource management
  • Customer relationship management
  • Project management
  • Inventory management

Then, ERP system is your solutions. In this article, Eximias will show you 6 reason you have to operate your business with ERP.

In addition, you will learn some helpful information:

  • What is an ERP system?
  • What are benefits of ERP inventory management system?
  • The importance of ERP system in resource planning

What is an ERP Inventory Management System?

ERP stands for enterprise resource planning which must have the functions of aggregating, processing data and helping businesses assess the current situation and orient their future development. 

It can be said that this is a type of software that aggregates everything in one, from warehouse management, expense management, employee productivity evaluation, production process control, etc. Additionally, one of the benefits of the ERP inventory management system is that it can connect things like warehouse management, sales, marketing, etc.

ERP solutions also make it easier for departments to exchange information with and with the rest of the business. Information regarding the activity and state of various divisions is collected and made available to other parts, where it can be efficiently employed. 

The ability to automatically synchronize data across the entire user system is one of the benefits of the ERP inventory management system. ERP software is a workspace for all employees in the enterprise to check, compare and exchange information. Plus, it can help all the departments be closely connected only through a single software.

ERP systems that combine manufacturing, financial, distribution, and human resource data can benefit companies. An ERP solution can eliminate costly duplication and incompatibility by connecting diverse technologies.

Seeking for more information about ERP software to your business, check out this blog post:

How ERP Inventory Management Benefits Your Business? 

When it comes to inventory management, it refers to how many goods you have ready to supply to the market, is the remaining raw material enough to produce the next batch of goods? 

Who is the supplier of production materials, and how much does it cost? Where to store goods? How long does it take to ship to the consumer? 

That’s the row of questions that need to answer when businesses wonder about inventory management.

And here are 3 benefits of ERP inventory management system: 

  1. Inventory Tracking

Inventory tracking is a crucial task and is the backbone of manufacturing, retail, etc. Because businesses need to know how many products they have in their hands to serve the market, is the raw material enough to reproduce. 

If all of these actions were performed manually in the past, now the technology embedded in enterprise resource planning software can help you a lot in inventory management.

One of the benefits of ERP inventory management system is this type of software allows you to streamline your inventory by maintaining a single database of all your materials, colours, and products. The inventory tracking feature also helps you track stock levels to don’t run out of supplies unexpectedly. 

With the ability to notify when the material is almost out of stock, this is the advantage that makes ERP software used by many businesses in inventory management.

The features of ERP inventory management system may assist warehouse staff in handling all of the primary and many minor warehouse tasks like receiving, inspection and acceptance, storage and internal replenishment system. 

It also helps direct and validate each step, capture record all inventory movement and status changes to the data file.

Benefits of ERP Inventory Management System
  1. Managing suppliers

Managing suppliers is one of the benefits of ERP inventory management system. Paint and coatings suppliers must not only deliver on time and in full, but they must also invest in R&D to help you with your specific product. Importantly, it compares your existing suppliers to the broader market to determine whether they are still the greatest fit for you in the future.

Using ERP software gives you complete access to your supplier base, allowing you to see how risk impacts your supply chain and easily manage it. One of the benefits of ERP inventory management system is to help you update supplier profiles, manage and track supplier performance, and find and accommodate new suppliers. It’s challenging to keep track of several suppliers, but ERP software helps by centralizing all vendor information.

Quantitative measurements of supplier activity include material prices at import, order and delivery dates, and delivery quantities. These are the kinds of metrics used to evaluate supplier relationships.

The advantages of efficient warehouse software include reduced costs, streamlined processes, and balanced service levels. Having a priority relationship with your suppliers also means that in the event of a labour strike, power outage, natural catastrophe, or another risk, your firm may continue to operate without interruption.

Benefits of ERP Inventory Management System
  1. Forecasting, Restocking, & Managing Excess Inventory 

When you use an ERP system, you don’t have to worry about keeping track of sales, purchases, or logistics since the system does it all for you. Due to the benefits of ERP inventory management system, managing things like long-lead items are becoming more and more convenient. 

You’ll know about these products early on in the design process of a project, giving you more time to purchase and ensuring you have it on time.

Knowing real-time stock levels also makes it simpler to refill inventory – an ERP can either automatically renew supplies for you or send your purchasing manager a timely notice informing them of the need to restock things. The expenses of expediting freight for manufacturers when they need stock might be huge if they don’t have an ERP informing them when inventory needs to replenish.

Benefits of ERP Inventory Management System

Why is the ERP inventory management system important?

  1. Integrate essential features can save your money

While ERP programs have become more adaptable in recent years, they still represent a significant financial commitment. The high expenditures of the program make it seem doubtful that it would save your company any money at all. 

However, one of the benefits of the ERP inventory management system is that you’ll realize how ERP may deliver a great return on your investment after you get over the first sticker shock.

To begin, ERP integrates a number of your organization’s separate systems into a single platform. Everything your employees need to do their jobs will be available from a single, centralized system, from product development to accounts payable.

You can assist your employees in making better use of their time by using integrated systems. Because of ERP, users no longer have to scour various systems searching for a single piece of data. Accessing data is considerably more straightforward now that it is stored in a central database. 

  1. Centralized data enhance cross-departmental collaboration

Depending on the ERP package, the features of ERP inventory management systems may differ differently, but all systems increase cooperation in some manner. 

As previously said, an ERP’s centralized database is what sets it apart from other enterprise resource planning systems. You provide your firm with a single point of truth with this database. As a result, there are fewer mistakes due to erroneous data, which results in lower expenses.

One of the benefits of ERP inventory management system is that it eliminates reluctance or stagnation during projects since all team members have access to the company-wide data they need. 

Furthermore, no information from different systems or sources has to merge. You don’t have to worry about the integrity of the data files since everything is stored, shared, and accessible via a single system.

Unless your staff is repeatedly inputting the same customer information into several systems, this is difficult to tell with certainty. With no ERP, you leave your processes vulnerable to human mistakes.

Benefits of ERP Inventory Management System
  1. Automating reporting increases accuracy in inventory management

A central database also helps with analytics and reporting. An ERP is a great business intelligence tool since it captures and saves all user data. As long as your provider delivers robust capabilities, ERP software helps your team prepare reports more efficiently and is time-saving.

Most ERP packages include a configurable dashboard so executives can access information right away. These reports may range from revenue and cost summaries to specialized KPIs that reveal specific functionality. 

Having easy access to these reports allows you and your team to make smarter choices faster. You no longer need to depend on IT to create reports. Ensuring only appropriate employees see vital corporate data is one of the benefits of ERP inventory management system.

  1. Equipped with advanced technology to improve work productivity

All reports and information related to warehouse management need to be accurate and continuous to ensure the quality of goods and raw materials can still provide for the business plan. 

All reports were done manually before we had the technology, now with automatic warehouse tracking, real-time reporting, and systematization of all data according to conditions. 

These are features of the ERP inventory management system that make warehouse management more convenient. Employees do not need to manually manipulate it, which takes time and does not guarantee high accuracy. 

Businesses and employees can take advantage of new technologies to develop other goals to increase productivity, efficiency, and profitability.

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  1. Barcodes and tags make management simpler

A fundamental difficulty for developing organizations is controlling and monitoring their increased inventory levels. ERP employs barcoding, tags, and serial numbers to maintain tabs on your inventory at every point along the supply chain. 

These tools let you maintain inventory levels at multiple warehouses, which things are in transit, and which items are on the shelves waiting for customers. The improved warehouse visibility streamlines the pick, pack, and ship process tremendously, eliminating all the guesswork.

Inventory monitoring also bolsters reporting since tracking systems give more precise statistics. Users may define unique KPIs to identify which goods move the fastest — demonstrating more robust demand — and which increase carrying costs. 

With the improved accuracy given by ERP, warehouse managers may access real-time data on their inventory to make more precise business choices.

Benefits of ERP Inventory Management System
  1. Update production progress continuously and automatically to optimize the manufacture

One of the benefits of ERP inventory management system is not only to control your inventory, but it also oversees your production process. ERP offers visibility into all aspects of production, including the work floor. Thus, production schedules, equipment, and workforce may all optimized to maximum capacity.

Furthermore, ERP handles both your BOM and your fixed assets. Users will be able to simply develop and amend BOMs while also keeping track of all past modifications. Schedule equipment maintenance using fixed asset management, and you’ll save money and improve your supply chain connections.

In Conclusion

Enterprise resource planning software is one of the essential investments for new and established businesses. Based on the benefits of ERP inventory management system, it can give users the ability to control your business more conveniently, accurately and efficiently. 

However, this software integrates everything in one, so the initial investment cost is worth considering.

Hopefully, the article has mentioned crucial knowledge to help you understand the importance of resource management and the benefits of applying software technology to enterprise resource planning. If you still have questions for Eximias about the benefits of ERP inventory management system, do not hesitate to contact us to meet with experts in software engineering.

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