How does ERP Software help in Inventory Management?
Enterprise Resource Planning commonly referred to as ERP is an integrated approach for effective business planning and operations. ERP software gives way to a system of integrated applications that helps in managing the business and automating various backend tasks.
The various functions of a business that ERP integrates involve product planning, manufacturing, development, marketing and sales. All these tasks are integrated in a single application and interface to ensure smooth business process. ERP software is useful for big as well as small organizations.
ERP software is particularly helpful in handling the tedious task of field service inventory management. Inventory management involves various tasks such as ordering, monitoring and handling inventory, determining the amount of order, assessing the time to place new orders, inventory storage and handling the finances pertaining to the inventory. All these tasks require a good amount of time and an eye for detail. This is the reason why more and more organizations these days are employing inventory management cloud software. This software integrates and automates these tasks thereby ensuring quality and timely action.
Features of ERP Inventory Management Software
Before we learn how ERP cloud software helps in inventory management, let us quickly take a view at its features:
- Tracking of inventory
- Management of inventory
- Sale and purchase of inventory
- Warehouse management and stock transfer
- Integration with accounting, shipping and other operational tasks
- Reports and analytics
- Payment gateway functionality
How is ERP Software Helpful in Inventory Management?
Cloud inventory management software has eased and improved the process of inventory management for various businesses. Here is how it helps in the process:
Inventory/ Stock Tracking: Keeping a track of the inventory manually can be quite a task. It may be really time consuming and the results may not be accurate at all times. ERP helps in efficient tracking of the inventory at different levels. It is especially a boon for retail chain stores that have inventory stocked at different places. ERP offers centralized inventory control that helps in boosting sales.
Eases the Logistics Process: ERP cloud system has eased and streamlined the process of shipping and logistics. The processes of manufacturing, transportation and delivery have all been integrated. The cost and time involved in these processes can be determined easily by this software.
Report Generation: ERP generates accurate reports on inventory purchases, sales and other important stuff. This gives a clear picture of the available stock, profit earned and cost incurred.
Planning New Orders: Inventory management software helps in planning new orders accurately. This is because the software helps in determining the inventory demand. So, the inventory is ordered well in time to ensure that the demand of the customers is met at all times.
Benefits of ERP Inventory Management Software
Here is a look at the various benefits attached to ERP inventory management software:
Better Supply/ Less Wastage
Inventory management software helps in assessing the need of new stock and also determines surplus stock. Having good knowledge of both these aspects is crucial for any organization as both over production and under production can be equally damaging. Under production may lead to delayed supply and leave the customers dissatisfied. Over production, on the other hand, is especially a cause of concern when the item is perishable.
Having ERP software in place ensures transparency of the tasks carried out cross various functions. Employing a third party to manage supply chain also becomes easier as ERP gives a clear picture of shipment as well as accounts related information.
As various tasks related to inventory management are integrated and automated, these are no doubt accomplished efficiently as the system bars the scope of any kind of error that may occur if these tasks are carried out manually.
Better Time Management
ERP helps in accomplishing various tasks quickly. A lot of time spent in handling various inventory management tasks can now be spent on more productive work.
Accurate Report Generation
The reports generated via ERP software are accurate and are delivered on time. Real time reports can also be checked which works in favour of the business.
Enhanced Customer Satisfaction
Incorporating inventory management software ensures that the entire system runs systematically. Tasks are accomplished timely and efficiently thereby increasing customer satisfaction.
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