{"id":3290,"date":"2021-02-23T11:39:27","date_gmt":"2021-02-23T16:39:27","guid":{"rendered":"https:\/\/www.projectsanalytics.com\/?p=3290"},"modified":"2021-05-05T11:51:00","modified_gmt":"2021-05-05T15:51:00","slug":"5-ways-erp-software-can-improve-inventory-management","status":"publish","type":"post","link":"https:\/\/www.projectsanalytics.com\/5-ways-erp-software-can-improve-inventory-management\/","title":{"rendered":"5 Ways ERP Software Can Improve Inventory Management"},"content":{"rendered":"\n\n[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;section&#8221; _builder_version=&#8221;3.22.3&#8243; custom_padding=&#8221;0px|||||&#8221; hover_enabled=&#8221;0&#8243;][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; custom_margin=&#8221;-131px|auto||auto||&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Text&#8221; _builder_version=&#8221;4.5.1&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243;]<h1><span style=\"font-weight: 400;\">Utilizing ERP Software to Solve Inventory Management Challenges\u00a0<\/span><\/h1>\n<p><span style=\"font-weight: 400;\">Accurate inventory management is critical in the manufacturing and distribution industries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Inventory management entails making sure that sufficient raw materials are kept in stock to prevent disruptions and delays in manufacturing processes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, proper inventory management requires that finished products are always kept available to fill customer orders on time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies in the manufacturing and distribution industries know that inventory management is not as easy as one might think.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" src=\"https:\/\/www.projectsanalytics.com\/wp-content\/uploads\/warehouse-image-inventory-management.png\" width=\"624\" height=\"375\" alt=\"\" class=\"wp-image-3295 aligncenter size-full\" srcset=\"https:\/\/www.projectsanalytics.com\/wp-content\/uploads\/warehouse-image-inventory-management.png 624w, https:\/\/www.projectsanalytics.com\/wp-content\/uploads\/warehouse-image-inventory-management-480x288.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 624px, 100vw\" \/><\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Inventory Management Challenges Manufacturing and Distribution Companies Face\u00a0\u00a0<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Inventory Overstock<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Ordering raw materials according to a specific schedule is not a solution for properly managing inventory. Similarly, proper inventory management does not mean that manufacturing and distribution companies should maintain huge warehouses that are always filled to the brim.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overstock of inventory is costly to manufacturing and distribution companies. Among other costs, there is:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The cost of insurance against damage or destruction of inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The cost of leasing or owning unnecessary warehousing space<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The costs of securing and protecting warehouses and inventory<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Difficulty Sharing Information<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is important for manufacturing and distribution companies to be able to share information between various company departments, as well as with outside vendors and customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ability to share information helps to make sure raw materials are always properly stocked, and also allows customers to know when they can expect their orders to be filled.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How ERP Systems Help Inventory Management<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One powerful way manufacturing and distribution companies can properly manage their inventory is by implementing and using an Enterprise Resource Planning, or ERP, software solution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ERP software allows manufacturing and distribution companies to centralize the data produced by the different departments in a company. By centralizing that data, company departments are able to, among other benefits, share accurate data in real time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ability to share accurate data in real time provides for better coordination between the company departments, increased efficiency and productivity, and strategic business decisions to be made more intelligently and rapidly.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Advantages of Using ERP Inventory Management<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Manufacturing and distribution companies that implement ERP software realize many advantages when they <\/span><a href=\"https:\/\/www.projectsanalytics.com\/services\/software-implementation\/\"><span style=\"font-weight: 400;\">implement an ERP software solution<\/span><\/a><span style=\"font-weight: 400;\">. Some of these advantages include:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Accurate Inventory Tracking\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">ERP software keeps track of inventory in real time. With ERP software, there is no delay waiting for reports to be prepared in order to know current and expected inventory levels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, because ERP software stores all company data in a central database, the ERP software creates a \u201csingle source of truth.\u201d What this means is that everyone in the company is using the same, updated data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With an ERP software solution, no longer will there be the problem of different departments working with data that is conflicting and out of date.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Automation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Once ERP software is implemented and being used, the need for time-consuming, error-prone inventory hand counts is eliminated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With its features that allow precise inventory tracking to happen in real time, ERP software helps automate the processes of ordering raw materials and shipping out finished products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data created by different company departments is shared automatically so that spreadsheets and reports do not need to be manually prepared. The different company departments are able to manipulate and process company data according to the specific needs of the department.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The automation made possible by ERP software, by reducing duplicated labor and the time spent on correcting errors, ultimately saves manufacturing and distribution companies time and money<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Forecasting<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Manufacturing and distribution companies that use ERP software are able to forecast supply and demand more accurately than companies that do not use ERP software.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As previously mentioned, ERP software solutions centralize the data produced by the various departments of a company. That centralization allows company data to be processed collectively, rather than in isolation. Accordingly, accurate forecasts can be made for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How long it will take for raw materials to be received from a particular vendor<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How long it will take for finished products to be delivered to a particular customer<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Manufacturing and distribution companies using ERP software can more accurately anticipate when demand for finished products will be above or below average. Accordingly, company management can confidently make inventory level adjustments while still making sure customer orders are timely being delivered.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">End-to-End Inventory Analysis<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Importantly, ERP software allows manufacturing and distribution companies to perform end-to-end inventory analysis. What this means is that ERP software allows company management to know, from looking at a single interface, information such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Average cost of inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Changes in the cost of inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Average time inventory remains in stock<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Time it takes to procure raw materials<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Time it takes for finished products to be delivered to customers<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All of this information can be shared throughout the company, due to how ERP software centralizes company data and allows for in-depth data processing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this information, manufacturing and distribution companies are able to cut costs while continuing to ensure customer satisfaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having trouble managing inventory for your manufacturing and distributing company?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At <\/span><a href=\"https:\/\/www.projectsanalytics.com\/\"><span style=\"font-weight: 400;\">Projects Analytics<\/span><\/a><span style=\"font-weight: 400;\">, we can help! We specialize in implementing ERP solutions tailored to your business, using <\/span><a href=\"https:\/\/www.projectsanalytics.com\/acumatica\/\"><span style=\"font-weight: 400;\">Acumatica backed ERP software<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Learn how our ERP software can benefit your company, <\/span><a href=\"https:\/\/www.projectsanalytics.com\/contact-us\/\"><span style=\"font-weight: 400;\">contact us<\/span><\/a><span style=\"font-weight: 400;\"> today!\u00a0<\/span><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n","protected":false},"excerpt":{"rendered":"<p>Utilizing ERP Software to Solve Inventory Management Challenges\u00a0 Accurate inventory management is critical in the manufacturing and distribution industries. Inventory management entails making sure that sufficient raw materials are kept in stock to prevent disruptions and delays in manufacturing processes. Further, proper inventory management requires that finished products are always kept available to fill customer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[38],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/posts\/3290"}],"collection":[{"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/comments?post=3290"}],"version-history":[{"count":0,"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/posts\/3290\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/media?parent=3290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/categories?post=3290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.projectsanalytics.com\/wp-json\/wp\/v2\/tags?post=3290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}