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Inventory: What Is At The Heart Of Any ERP System
“Inventory is critical,” says Rhonda Gieza, Senior Consultant for Global Shop Solutions. “It is imperative that the information that is there is correct.”
Every manufacturer knows how true this statement is. If you can’t trust the inventory data in your software, it becomes worthless. Instead of saving you time, time is wasted going through stock rooms and purchase orders trying to determine if a part is actually available and what the true cost is.
What is at the heart of any ERP system?
Because inventory is such a critical hub to everything that happens in manufacturing, the most accessed screen in the Global Shop Solutions ERP software is the Inventory Supply and Demand screen. It is easy to see why this particular screen receives so much attention.
“The Supply and Demand screen has seven different variations” explains Gieza, “and from that screen, you can find out everything you want to know about a part number and more.”
It is the drilldown capabilities that make the Supply and Demand screen so valuable to users. With a single click at the part number level, you can access the bill of material (BOM), another click shows all of the individual parts that are on that BOM, and another click to quickly find the demand for any of those parts. With a single click of a button, you can return to the top level where you started.
The visibility and auditing of costs and inventory movement make the Supply and Demand screen so valuable. Gieza actually gets excited talking about the amount of detailed information available through the inventory history.
“In our inventory history, we show the old costs, transaction costs, and related average costs,” she says. “We show the old quantity, the transacted quantity, and the new quantity; and from that screen, you can see how a part has moved from one cost value to another.”
For companies that use lot control numbers, serial numbers or bin numbers, history also shows you the same type of information as inventory but it can be lot number or serial number specific. Work order history is also available. On repeat part orders, you can calculate across all the past work orders completed for that part to determine the average cost, based on all the parts and work orders completed in the past.
Transactional Inventory Accounting
As with any type of data entry, there is always an element of human error to deal with that. Global Shop Solutions minimizes the risk of error in two ways: through our one-entry system, and second, through our thorough training programs.
As a fully-integrated ERP software system, when inventory transactions are entered, either manually or through electronic data collection devices, accounting entries are automatically created in the manufacturer’s general ledger, keeping every department of the company in sync.
“User training makes sure that inventory transactions are handled properly,” Geiza explains, “that they issue materials, create sales orders and close orders correctly. All of those things determine the accuracy of your supply and demand within your manufacturing inventory software.”
Detailed, accurate inventory and improved material ordering efficiency facilitates a stricter control of costs. Quick access to information and versatile, historical analysis enables managers to make informed decisions based on real data rather than uncertain estimates. Just another way that Global Shop Solutions can simplify your manufacturing.