Keeping track of stock levels is a concern for both manufacturers and retailers. While older, manual methods are time-consuming and prone to error, modern inventory management systems update in real time, keep track of stock quantities and track the most efficient picking routes.
Better organization means happier customers, too. According to Business2Community, proper inventory management reduces the time it takes to fill an order by 87 percent. Labor costs are cut 30 percent, and there’s 10 times less chance a requested item will be out of stock. This improved efficiency increases customer satisfaction and solves common complaints – including shipping delays, waiting lists and receiving incorrect or broken items.
RetailWire found a shortfall in stock costs businesses approximately $129.5 billion per year, while overstock cost them $123.4 billion. Business2Community blamed the oversights on bad forecasting data and a lack of inventory tracking software. Meanwhile, a study by Intermec found incorrect picking costs major retailers $1.5 billion. Of those questioned in the study, 74 percent said they believe implementing new technology would have the greatest impact on increasing profits.
ERP software leads to better predictions
ERP systems excel in their ability to collect data. They can track inventory levels over time, keeping records of when items are used and shipped and how long they’ve been in your warehouse. Thus, software for inventory management takes the guesswork out of ordering materials and forecasting future production needs.
The accuracy and amount of information ERP software provides enables you to check your business’s exact needs at any given moment. Manufacturers will know exactly what parts and equipment they have on hand and make better estimates as to what they’ll require for incoming customer orders. They’ll also be able to keep track of supplies for expense reports, placing every item purchased in a specific category for financial records.
Custom software for manufacturers
According to Inventory Magazine, Advanced Technology Services, Inc., a maintenance company in Illinois, saved almost $50,000 per year after it sought custom hoses from a third party. Applying such customization to inventory management software can save your business time and money.
With custom software and mobile warehouse inventory management capabilities, staff can conduct inventory counts on a more frequent basis if necessary. Counts will also take less time to complete, meaning employees can focus their attention on other areas of the business.
Want to know more about custom inventory management solutions? Download the “Warehouse Mobile Data Dynamics NAV Module Data Sheet.”