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How Erp Systems Can Effectively Help In Managing The Inventory Of The Organizations
Management of inventory is a tedious task for every organization particularly for the SMBs as they have to perform several business operations simultaneously. Inventory consists of several important things to manage such as ordering, storing and shipping of the manufactured products and many more.
On the other hand, mismanagement of the inventory processes may lead to dangerous consequences. Without proper management of inventory, businesses can either lose money because of the absence of inventory or waste their money due to the excessive stock available in the inventory.
ERP inventory management assists companies in numerous ways.
With advanced ERP systems, you can easily organize and categorize several items. A special identification number has been allotted to each and every product so that the items can be easily confirmed.
Furthermore, this software can assist you to minimize the operational expenses by providing detailed insights at the time of reorder, restock or remanufactured products. Also, an effective pharma ERP solution eliminates the difficult tasks, therefore, increases efficiency by handling lots of inventory challenges.
Here are certain inventory challenges that can be easily resolved by an effective ERP solution.
Advanced ERP systems can eliminate excessive inventory, shortage of inventory, dead inventory, inventory turnover.
• Abundance of inventory:
Suppose your company sells seasonable products, at that point, you don't have to place excess inventory as storing excessive inventory limits the liquidity at the same time too much forecasting leads to a shortage of inventory which is also unsafe. An appropriate ERP system can balance out all the inventory by analyzing past sales history.
• Inventory shortage (Out of stocks):
It is hard to believe that shortages of inventory can also lead to cost up-gradation. Let’s understand it with an example. Imagine your profit margin is huge for any specific product. Lack of stock during peak selling periods can be deleterious at that time period. Here, an effective ERP inventory management solution comes into play. ERP inventory management sets a threshold for each product and it can be changed according to the demand. So, in a case where the inventory of a product falls below a threshold level, an immediate alarm gets sent out to order more products.
• Dead inventory:
Deadstock is also known as expired stock i.e a stock that is unused or unsold. Having a dead stock is also disastrous as it can waste your capital in two forms. One of such costs is COGS (cost of goods sold) that is unable to recover and the other is warehouse cost which also increases until the product sits in the warehouse. However, with the help of an effective ERP for pharmaceutical industry, you can be notified about all the times when a stock is unused or dead.
• Inventory Turnover:
Inventory turnover is crucial as with the help of it, we can reorder or re-manufacture the products. Manually calculation of inventory turnover such as count cycle, order cycle, the delivery cycle is time-consuming. Thence, automation of whole inventory management can streamline your business operations hence increases the overall efficiency of the business.
Probiz is a cutting edge ERP solution that offers numerous benefits to an organization including the elimination of stock shortage, excessive inventory, therefore, boosts the productivity and flexibility of an organization. To get a detailed insight kindly visit our website https://www.probizerp.com
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