As supply chain management continues to become more automated in order to streamline inventory, with the help of latest technology (ERP software solutions) and by utilizing ERP inventory management services in business operations, accuracy gradually begins to improve. Though, it’s not possible for every warehouse to become automated for various reasons. For instance, if a physical inventory “on the books” and an inventory in a warehouse fails to match, the situation can become chaotic: if a delivery boy goes to retrieve some parts and they aren’t there (or not available in enough amount), a round of manual checks and back-tracking needs to be conducted to resolve the issue and get the order out for shipping. The need for accuracy in warehouse inventory must not be underestimated when your inventory is one of the important assets to your company.
Further, inaccurate and ambiguous inventory records can result in a big impact on other areas and systems in the warehouse including:
- Deficient purchasing practices and surplus safety stock are associated with buyers’ lack of buying and confidence in record accuracy.
- Hold up in order fulfillments linked to misplaced products.
- Decreased sales due to stockouts and excessive commitments.
- Deficient labor productivity is associated with searching for the lost product.
- Higher freight costs result in expedited shipment to customers.
These certain issues could result in excessive inventory, tying up capital and negatively impacting the capacity: the results come in the form of higher costs, decreased productivity, and poor customer service. Then, the automated and advanced warehousing technology such as ERP Warehouse Management Services (ERP systems implementation) or WMS, in addition to a proper cycle counting campaign can assure you 99+% of inventory accuracy. Indeed, this type of high-level inventory accuracy lays the foundation for a plurality of other potent advantages realized in using (ERP implementation) ERP inventory management system.
Inventory management Solutions (ERP inventory management services) are a prominent aspect of the ERP (Enterprise Resource Solution) system that can help SMEs (small and medium-sized businesses) manage their retail locations and warehouses.
