An ERP software solution is a common business tool used by many organizations. ERP systems offer numerous benefits that cater to a lot of companies. Inventory and warehouse management systems are essential tools being used in areas such as retail, wholesale, and many other industries. It benefits the company by helping in keeping track of its produced assets, ensuring the quality of a product, and distributing to customers on a timely basis. In this blog, I will explain why you must integrate inventory system with ERP software.
ERP systems also play an essential role in managing inventory. It is an all-in-one software that has many features used to manage warehouse and inventory activities. However, its capabilities and features are not enough. Inventory specific software has different functionalities for efficient management of inventory and stocks. It is not necessary that your all-in-one-solution may work perfectly in dealing with all areas of business. You may face problems when you have multiple individual functions occurring at the same moment. Then, things might get twisted.
There is a limit to perform ERP customizations. Otherwise, you will face increased system cost, upgrade hassles, and slow implementation procedure. In this situation, integration of specialized inventory system with ERP software can solve the problems you are facing:
Below are the key reasons that compel you to integrate inventory system with ERP software :
1. Reasonable cost
ERP integration with inventory system results in better-organization, which in turn, helps to save time. If you customize your ERP inventory module, then it will be very expensive for your business. This integration alleviates the production bottlenecks and thus, reduces business costs through better inventory planning. It also enhances customer satisfaction due to better management of inventory. Overall, ERP integration with inventory management makes a way for improved efficiency and better productivity in your warehouse.
2. Accurate financial reporting
Inventory of your business plays a very important role in all stages of your financial reports. Finished assets, work in progress or raw materials, all kinds of inventory are associated with a financial value. Inventory management integrated with ERP software provides accurate annual reports and finance related reports. By using an ERP inventory integrated system, it is sure that the recorded value in your books will match the physical value in your warehouse.
3. Supply chain transparency
Several organizations connect with third-party supply chain associates to refill their inventory levels and coordinate customer shipments. So, for performing this you need to integrate the inventory system with ERP software as it will not only keep track of the production of the company, inventory cycles but also coordinates with suppliers. A company who supplies materials to you can view your company’s varying inventory levels and can ensure their product is available at your warehouse when your customers need it.