Inventory is an expensive asset that needs to be carefully managed and controlled. Complex decisions have to be made about how much and which items a company should hold overall and at each stocking location. Additionally, the company needs to know when to replenish, how much and where. Businesses know they can improve profitability and working capital through better inventory management, but many are not sure where to start or where savings can be found. They face an ongoing balancing act as they try to carry enough inventory to respond quickly to customer demand, minimize transportation costs, and minimize investment in inventory to reduce warehousing and storage costs.
Inventory management must be an executive issue. This critical business function is too important to be the sole responsibility of the warehouse manager.
Inventory Management Software
- As companies grow, the variety and quantities of inventory grows and need to be managed
- In manufacturing companies, as much as 50% of capital is in inventory
- The major cost component of many products has shifted to materials
- The link between effective inventory management and cash flow is now recognized
- Procurement regulations are affecting the purchasing considerations of organizations
- Organizations are able to leverage whole-company spending potential to gain a competitive edge
The role of inventory management is to coordinate the actions and requirements of a business so that stocks are maintained at the right place, at the right time, and in the right quantities to satisfy the demands of customers or of a production process. Using an ERP system to manage inventory will assist with a number of goals:
- Achieve optimum levels of inventory at the correct locations
- Address issues of inventory losses and obsolescence
- Reduce the problem of excessive inventory
- Prevent interruptions to production through stock shortages
- Increase visibility of information about inventory
- Improve procurement and replenishment processes
- Enable inventory to be managed at a more granular level
- Assist with regular, efficient stock takes
- Provide additional attributes to handle stock better – lead time, supply/demand variability, velocity
- Download the Managing Inventory with SYSPRO Brochure.
Inventory Management System
The powerful tools in SYSPRO’s Inventory Management suite provide you with superior inventory control, traceability and recall management to be able to optimize stocking levels, free-up working capital, provide more effective customer servicing and benefit from improved profits:
Improve Inventory Forecast Accuracy
SYSPRO’s Inventory Forecasting solution provides the tools to measure the quality of your sales forecasts and enables you to produce automatic or manual forecasts based on sales history. Additionally, you can easily identify those products that contribute the most to your business in terms of sales value, gross profit, cost of sales, quantity sold or hits.
Improve Visibility of Current and Future Supply and Demand
SYSPRO’s Material Requirements Planning gives you clear visibility to the integrated effect of current and future supply and demand. This helps you to make better purchasing and production decisions and reduce excess and obsolete inventories.
SYSPRO’s Inventory Optimization Solution
Takes a holistic view of inventory levels and provides the methodology, tools and processes to ensure there is the right balancing of inventory within the supply chain to achieve desired customer service levels while minimizing total supply chain cost.
Optimize the Management of Your Procurement Policies
By better managing the processes and policies that deal with the sourcing of suppliers during your purchasing cycle – with SYSPRO’s Preferred Supplier feature – you can decrease your purchasing risk, improve purchasing governance and ultimately achieve cost reductions.