Let's break down some key technical terms related to Inventory Management ERP:
- ERP (Enterprise Resource Planning): A comprehensive software solution that integrates and manages various business processes, including inventory management, finance, human resources, and more.
- Inventory Management: The process of efficiently overseeing the flow of goods into and out of a business, ensuring optimal stock levels while minimizing costs.
- SKU (Stock Keeping Unit): A unique identifier assigned to each distinct product in a company's inventory for tracking and management purposes.
- Reorder Point: The inventory level at which a new order should be placed to replenish stock before it runs out, based on factors like lead time and demand variability.
- Safety Stock: Extra inventory held to mitigate the risk of stockouts due to unexpected fluctuations in demand or delays in the supply chain.
- Batch Tracking: Monitoring and tracing the movement of a group of similar products (batch) throughout the supply chain, often important for quality control and recalls.
- Lead Time: The time it takes from placing an order for goods until they are received and available for sale, including order processing, shipping, and receiving.
- ABC Analysis: A method of categorizing inventory items based on their importance, where "A" items are the most valuable or critical, "B" items are moderately important, and "C" items are the least.
- RFID (Radio-Frequency Identification): A technology that uses radio waves to identify and track objects, commonly used in inventory systems for real-time tracking.
- Barcode Scanning: The use of barcodes to uniquely identify and track products, with scanners used for quick and accurate data entry in inventory management systems.
- Integration: The seamless connection of the ERP system with other software or systems, such as suppliers' databases, to ensure real-time and accurate information flow.
- Cycle Counting: A method of regularly auditing a small subset of inventory items on a rotating schedule, as opposed to a full physical inventory count, to maintain accuracy.
