ERP - Inventory Module

ERP and Web Based Supply Chain Management - Inventory Module ?

Inventory Management is one of the crucial aspects in today’s Industry irrespective of type and size of business. Every business must have some kind of inventory to conduct and sustain day to day operations.

Inventory majorly consists of Raw Materials Inventory, Work-In-Process (WIP) Inventory, Finished Goods Inventory and Maintenance, Repair, Overhaul (MRO) Inventories ..etc.

Inventories are nothing but investment in goods and represents the cash infused by the top management into any businesses, to ensure that there are no disruptions in manufacturing activities and subsequent supplies to their customers are not hampered. Which impact on service capabilities of an organization resultant customer satisfaction with quality goods and further incremental revenue OR poor inventory management will end up with dissatisfied customer and loss of revenue which all organization’s in today’s era dislike the most.

In today’s competitive world Industries having inefficient ERP systems ,which don’t give visibility on Inventories are more prone to wiping out their profitability and having bleeding issues in form of:-

1)????? Excess & Obsolete stocks

2)????? Disrupted production capabilities

3)????? Unforeseen cash flow impact

4)????? Unfulfilled Customers demand

5)????? Lack of LIFO – FIFO systems

6)????? Impact product performance.

7)????? Increase in inventory carrying cost.

8)????? Mismanaged Warehouse’s / Storing Facilities

9)????? Low Inventory turnover

10)?? Reconciliation issues. etc.

However, Inventory in excess as well as Insufficient inventory both will have adverse impact on the business result. Hence having an effective ERP which consists of Inventory module is must in today’s changing dynamics.

Organization’s failing to understand importance of investing in a proficient ERP may sound “Penny wise and pound foolish “.

In market there are several organization’s like BAAN Corporation, Oracle, ERP Next, SAP .etc. . They not only offer competitive ERP systems but can tailor fit for any fast-growing complex organizations requirements, based on the selective needs.

A competent ERP can be boom to Supply Chain organization’s as they consist end to end solutions for the entire Demand to Deliver process.

Inventory Module in today’s ERP help organization’s but are not limited to Stock tracking and transfers, efficient Ware House Management (WMS), Managing Purchases and the sales orders, payment gateway, Administration of Stocks, Inventory Audits, Alarms on safety stocks and reordering level, help identify EOQ, ABC analysis, Stock Valuation, LIFO, FIFO, and weighted average, influence make or buy decisions, help with MRP-I & II ...etc. ?It covers all aspects stock related functions of an organization.

As the technologies evolve the need for efficient Web Based Supply Chain Management and ERP systems are increasing day by day with an expectation to have a transformative impact on the business operations.

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Hence an effective ERP for Inventory Management helps organizations to run an uninterrupted show which will not only help reduce inventory cost but will also play a vital role in managing risk and forecasting demands thus fulfilling the objective of “Satisfied Customer and Maximizing the Profits “.