inventory managment

Inventory management is an important business function. It involves active monitoring and management of inventory balances and their costing to minimize overheads and maximize profits. It deals with three areas of supply chain operations: ordering, storing and shipping. Its effective execution is critical to the success of any business, big or small.

While inventory management may seem pretty straightforward and simple on the surface, in reality it’s a very challenging task, often creating issues for business owners in the form of inventory shortages, excess inventory and dead stock.

  • Inventory shortages are situations when a business fails to accurately gauge the demand of a certain product, undermining it in the process. As a result, that product becomes unavailable in the stock, leading to lost business.  
  • Excess inventory exists when a business inaccurately orders (or manufactures) inventory and is left with more than the market demands. It’s an outright drain hole for your bottom line, eating up your capital and space.

Dead stock is on-hand stock that’s unsold, unused, expired or forgotten about. It is harmful because it wastes your money on two separate fronts: unsalvageable liquidity and warehousing storage costs.

Any of these management inefficiencies can be detrimental to the financial health of your business. Thankfully, with an ERP software system you can easily solve them.

An ERP software system automates and consolidates your supply chain processes and gives you revealing operational insights to help you better manage your inventory balances.

For example, an ERP system can analyze your historical sales data and make a safe forecast for future sales for your different products. This way, you can avoid inventory shortages or excess inventory problems.

Similarly, an ERP system can keep track of all the relevant data associated with your products, such as when a product was manufactured or when it will expire, enabling you to avoid accumulation of dead stock.

Do you run a manufacturing or distribution business? How do you overcome inventory management issues? Would you be interested in deploying an ERP software system to better manage your inventory balances?

If so, QuikErp can help!

We’re one of the leading developers of ERP software programs. Our software solutions can be customized with different modules and capabilities, including inventory management functions. We’d love to work with you and take your business to the next level. Contact us today to discuss a potential ERP implementation.   





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