Inefficient inventory management can wreak havoc on your business. That’s why many manufacturers and suppliers use a cloud-based ERP inventory management control solution to identify in real time current inventory levels. An ERP system with high resolution genealogy and traceability provides detailed inventory and material information from any point in time throughout production.
But what happens if you’re using legacy ERP? Most likely you are dealing with these inventory control problems:
Without proper tracking, it’s difficult to forecast demand. You may be in a situation where you don't have confidence in your inventory accuracy. Negative inventory means you can’t ship what you don’t have, which then leads to expediting costs in trying to meet customer demand, and a surplus means you’ve got to carry the cost.
Using Excel may have worked in the past but more than likely you are losing money today by continuing to manually track inventory. It's time consuming, tedious, and wastes resources that could be used adding value to other areas of your business. Manual tracking also leaves room for more mistakes—which your business can’t afford.
- Unhappy Customers
Inaccuracy and manual processes ultimately lead to unhappy customers. You can’t improve service levels if you are trying to fill back-orders; customers are already kept waiting. You need a way to view real-time inventory so you can plan for demand and know exactly what is where.
Legacy systems are often static repositories of inventory information noting the warehouse in which it resides, the location in that warehouse, the part number, and the quantity. What's missing is real-time visibility into both stored and work in process inventory, the ability to quickly move inventory from one place to another as needed, and the ability to accurately report on inventory at a moment's notice. Manual inventory control is time-consuming, error-prone, and inaccurate.
Cloud-based ERP inventory control helps you automate, track, and trace inventory—even for multiple facilities. Location, quantity, and a traceability trail is automatically generated and updated while items move through production. Inventory traceability both upstream and downstream enables you to quickly respond to customers or quality issues. The fact that you don’t have to manage and maintain the solution means you can focus your resources on the business and not on the technology.
Don’t continue to operate without accurate inventory control. See how one automotive supplier achieved 99 percent inventory accuracy and cut inventory on-hand cost by 50 percent. Download the white paper: The Power of Inventory Control.