Managing your inventory is one of the most critical factors for any business dealing with physical goods. Manual methods of inventory management such as utilising spreadsheets can be proven to be inaccurate and time-consuming, which is one of the main reasons why businesses turn to ERP systems to effectively manage and optimise inventory level while maintaining data accuracy.
ERP system goes beyond merely managing stock quantities but also to expand to other key related areas such as financial impact of goods movement, procurement, order management and more. Here are the 5 benefits that an ERP can bring to you for your inventory management needs:
1. Gain Control and Visibility Across Multiple Locations
The inventory module in an ERP provides real time inventory visibility into stock levels across all locations, including warehouses, stores and goods in transit. ERP achieves this feat by recording and updating all inventory transactions in real time, whether through a direct user input, process automation or file exchange with other supporting systems.
It also allows you to set predefined parameters such as minimum stock levels to support inventory replenishment, or order allocation rule to automate order fulfilment. As a result, you can proactively monitor stock levels and sell-through, procuring inventory or transferring between locations as necessary to ensure inventory availability and minimise obsolete inventory.
2. Prevent Excess Inventory
Customer satisfaction and profitability require maintaining the right balance of stock levels to fulfil anticipated orders. Carry too much inventory and your capital is tied up in products that aren’t being sold. Moreover, there are costs to store and manage the inventory, particularly items with limited shelf life. However if carry too little, the business runs the risk of stock outs and an inability to meet customer demand.
With a modern inventory management system, particularly one that is integrated with the ERP software can help with forecasting and demand planning, ensuring that the perfect amount of inventory is kept on hand.
3. Automation in Cycle Counting
Using automation in your cycle counting process can improve the accuracy of your results. Automation also lowers staff costs, boosts worker productivity, provides trust in your stock levels and enables real-time visibility as your inventory changes.
By streamlining your inventory cycle count, you not only stand to eliminate the inventory costs associated with human error, but you can also benefit from further cost-savings.
4. Improve Customer Experience
As customers rely more and more on their smartphones to “window shop” for the products they’re looking for prior to visiting local stores to make their purchases. The need for an integrated inventory management system that constantly keeps websites up to date is more important than ever.
When customers are confident that the inventory items they see on a brand’s website are represented accurately, they’re more likely to visit their store and make a purchase. This can help to build trust and drive more foot traffic.
5. Facilitates Growth
Using an inventory management system, it enables you to easily plan for your growth and scale your business the right way. As your business develops, enters new markets, and diversifies its products, the system allows you to scale depending on your business needs. You can scale profitably without having to worry about spending on upgrades to your system.
Oracle NetSuite Cloud ERP
Oracle NetSuite Cloud ERP solution provides rich functionalities to manage inventories for many businesses, in order to make better and faster decisions. It allows you to highly control inventory including demand planning, procurement, fulfilment and finance in multiple locations from your favourite device in real time. Oracle NetSuite Cloud ERP also helps businesses to reduce errors and improve efficiency without wasting resources on manual reporting.
PointStar is a 5-Star Oracle NetSuite partner with extensive knowledge and experience in financial accounting/ERP and CRM solutions for small to mid-market and enterprise customers. Established in 2008, with offices in Singapore, Kuala Lumpur, Jakarta and Ho Chi Minh, our expertise ensures successful implementation of Oracle NetSuite Cloud ERP for more than 100 clients throughout the region.
To learn more about Oracle NetSuite Cloud ERP, please contact our Oracle NetSuite experts.