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Inventory management is an essential part of the overall supply chain management. Inventory management involves various aspects such as the management of ordering inventory, storage of stock, and controlling the amount of product for sale. Handling all these aspects of inventory management is a challenging task for companies as improper and inefficient inventory management can cost extra money, damage a company’s reputation, and brand value.
Enterprise resource planning (ERP) systems can be an ideal ally for companies in the proper management of their inventories. ERP systems provide a single platform to collect, store, manage and communicate data across all functions of the enterprise. Here is an analysis of how ERP systems can help in inventory management:
Automated Control: ERP systems help in streamlining business operations, and it also helps in automating repetitive and mundane tasks. Automating these tasks can help companies to save time, money, and eliminate human errors. Automated inventory management will offer real-time visibility into current inventory in transit and costs by allowing end users to track and manage data across multiple warehouses.
Prediction for Demands: ERP systems track sales, purchasing, logistics, and supply chain management, which can help inventories to meet the demand cycle of the business. ERP system can also help companies to start a marketing campaign to move the stock that can become obsolete or take up shelf space that something more profitable could be using.
Inventory Tracking: Many companies have businesses across countries; thus they have multiple inventories to store the product and manage sales. Companies need complete visibility for all inventories on a single platform for the efficient supply chain management. ERP systems offer remote access, helping companies to manage all the inventories from any location. This helps companies in tracking any product in the inventories with instant access to the centralized inventory database. The centralized inventory database allows companies to analyze product availability and expected delivery time.