Being a bespoke maker necessitates the use of several unique components in the construction of your products. Additionally, a small firm might not have the resources or room to purchase significant quantities of raw materials in advance. One of the largest issues facing small and mid-sized bespoke manufacturers is managing inventory. And doing it right may make or destroy your company.
By making an investment in a strong inventory management system for small business and implementing best practices, you can obtain control of your inventory and guarantee that you have the correct number of components on hand to finish tasks on time, minimize production bottlenecks, and keep customers satisfied.
How can ERP systems aid in inventory control?
One of the best choices you can make as a bespoke maker is to use an ERP system for inventory control by connecting with the top ERP solution providers. You won’t just stay away from the drawbacks of utilizing a spreadsheet and all the human error that might result from it, including missing or incorrect information, but you’ll also save time by not having to manually update and balance inventory.
Your inventory will be automatically connected with all facets of your business. From planning to operations, manufacturing, and accounting, if you use an ERP system. Your company will become more structured, streamlined, and effective as a result of being able to handle all aspects of operations through a single system.
Although no two ERPs are similar, an ERP’s inventory management module will often have the following features:
- Monitoring and controlling inventory
- Management of sales and purchasing orders
- Order fulfillment via several channels
- Stock transfers and storage management
- Payment gateway capabilities
- ECommerce, accounting, shipping, and other operational tool integrations
- Intelligence analyses and reports
4 Benefits of ERP solutions for inventory management
Knowing the inventory you have on hand and stored on the shelves is the foundation of inventory management. An inventory management system by itself. However, cannot successfully optimize your inventory until it is connected with the rest of your company.
Inventory tracking is facilitated by an ERP. Which combines your inventory management with the rest of your business operations. Your workforce has immediate access to a central inventory database. That is updated in real-time thanks to an ERP system.
This increases production efficiency and makes financial reporting simpler by letting you know exactly what you can or cannot fulfill, what raw materials you truly have on hand, and whether the data in the database corresponds to what is on your shelf.
By removing the laborious chore of manually processing inventory management, an ERP system may save you time and money. Real-time inventory updates replace laboriously updating spreadsheets, allowing you to spend more time concentrating on other aspects of your manufacturing company and less time on the time-consuming chore of manual entry.
Human mistake and the potential problems it causes are eliminated by an automated inventory management system. Additionally, your dashboards will show you a comprehensive view of your inventory, improving your ability to see how things are going.
Additionally, practically everything is automated with an ERP system, including the contacts for your suppliers, providing you extra time and assurance that the task will be done correctly.
Business process simplification:
The efficiency of manufacturing improved with accurate inventory management. Instead of, say, attempting to identify a certain item of stock, employees may use their time on other activities.
When you use an ERP system, you can automatically keep track of the inventory you use on each task. This allows you to, for instance, plan production effectively since you will always know how much raw material you have on hand and how much you will need to purchase to finish a work.
Managing excess inventory, restocking, and forecasting:
An ERP system manages your sales, purchases, and transportation so you can maintain the proper stock levels to meet your company’s demands. With an ERP Software Solutions, you can benefit from an inventory management system. That is integrated with the rest of your business, making it simpler for you to manage things like long lead-time items. You can learn about these items during the project’s design phase, giving you more time to order the item and guarantee that you’ll have it in time.
Real-time stock levels also make it simpler to restock inventory; an ERP may either automatically place orders for you or alert your buying manager to the requirement for an order at the appropriate moment. Manufacturers may incur significant fees to expedite freight when they are in dire need of supplies if an ERP does not alert them when it is time to restock.
And if you have access to real-time surplus inventory information. You might be able to return merchandise rather than occupying shelf space that could be use for something more vital.
Streamlined Order Fulfillment
Integrating inventory management with other ERP modules, such as sales and order processing, streamlines the order fulfillment process. As soon as an order is placed, the ERP system can check stock availability and trigger automatic order processing, reducing manual intervention and expediting the delivery process. This streamlined order fulfillment enhances customer satisfaction and loyalty, making businesses more competitive in the market.
Reduced Carrying Costs
Excess inventory ties up capital and incurs carrying costs such as storage, insurance, and obsolescence. ERP solutions help businesses maintain optimal inventory levels, minimizing excess stock and reducing carrying costs. Additionally, improved inventory accuracy reduces the likelihood of stock discrepancies and inventory write-offs, further contributing to cost savings.
Effective inventory management relies on strong relationships with suppliers. ERP solutions facilitate seamless communication with suppliers, enabling businesses to establish more collaborative and efficient supplier relationships. With real-time data on inventory levels and demand, businesses can negotiate better terms with suppliers, ensure timely deliveries, and minimize lead times, leading to increased reliability and trust between the two parties.
ERP systems often include advanced analytics and forecasting tools that help businesses predict customer demand more accurately. By analyzing historical sales data, market trends, and other variables, these solutions can anticipate demand fluctuations and ensure businesses maintain optimal inventory levels. Improved demand forecasting reduces excess inventory and prevents stockouts, leading to significant cost savings and enhanced customer satisfaction.
ERP Solutions Revolutionize Inventory Management
Batch and Lot Tracking
ERP solutions offer robust batch and lot tracking capabilities, enabling businesses to track the movement and origin of specific product batches or lots throughout the supply chain. This feature is especially valuable for industries dealing with perishable goods or products subject to recalls, as it allows for precise identification and isolation of affected items.
Barcode and RFID Integration
Integrating barcode and RFID technology with ERP systems streamlines inventory tracking and management. Scanning barcodes or RFID tags automates data entry, reduces manual errors, and improves the accuracy of inventory records. This integration ensures real-time updates on stock levels and enhances inventory control.
For businesses operating across multiple locations or warehouses, ERP solutions provide seamless multi-warehouse management. Centralized inventory control enables businesses to optimize stock distribution, balance inventory levels, and reduce unnecessary intra-warehouse transfers, resulting in cost savings and improved efficiency.
Automated Reordering and Procurement
ERP systems equipped with automated reordering and procurement features simplify the inventory replenishment process. Using predefined reorder points and inventory thresholds, the system triggers purchase orders automatically when stock levels fall below the specified threshold. This automation minimizes stockouts and ensures timely inventory restocking.
Serial Number Tracking
Serial number tracking is essential for industries dealing with high-value or serialized products, such as electronics or machinery. ERP solutions facilitate end-to-end tracking of individual product serial numbers, ensuring complete traceability, warranty management, and counterfeit detection.
In conclusion, ERP solutions have emerged as a game-changer for businesses seeking to improve their inventory management practices. With real-time visibility, accurate demand forecasting, and streamlined order fulfillment, businesses can optimize inventory levels, reduce carrying costs, and enhance customer satisfaction. ERP solutions also foster better supplier collaboration and provide robust inventory tracking and traceability, ensuring compliance with industry regulations.