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Manufacturers Need ERP Software to Avoid Inventory Pitfalls
In order for manufacturers to avoid falling into inventory trouble, they should invest in ERP software. A software system that can effectively manage inventory coming in to a facility, going out to customers and awaiting shipment helps businesses stay on track.
As Manufacturing.net stated in a recent article, investing in a paperless inventory tracking program will help lower the number of inefficiencies and recording mistakes that often occur with outdated computer programs. ERP software offers perks like one-time data entry, improved customer service, more accurate shipping and overall consistency between departments.
Beware of overstocking
Many businesses do not trust their current inventory tracking systems. To err on the safe side, they stock up on products and parts so they don’t lose sales or clients if they run out of inventory. Or perhaps the changing trends have rendered certain parts undesirable. Sometimes, unused items can be sent back to the vendor for a refund, but that is not guaranteed. Overstocking can really only be avoided by ordering inventory as it’s needed. Since ERP software updates inventory numbers in real time, rather than at the end of each month or quarter, there is no risk of stocking up too many products or parts. Or, if the risk of overstocking presents itself, manufacturers can stop it in its tracks before it has a chance.
On the other hand, businesses must be aware of the exact number of shipments coming in each day to avoid running out of supplies. If incoming orders start changing in quantity or quality, businesses need to be able to measure this accurately. ERP software helps keep pace with everything coming into the warehouse and stores it all in the same place. That way, changes or discrepancies can be more easily spotted.
Getting rid of paper when it comes to inventory tracking is essential. Rather than hunting down a work order or going to great lengths to share information with another employee, workers can swiftly look up the information they need with ERP software, keep shipments on schedule and help management make better decisions about supply orders in the future.
Along those same lines, management can easily delegate tasks to employees, rather than taking on every single warehouse function themselves. ERP software is accessible by any employee quickly, so these tasks and any decisions that need to be made can happen in the moment, rather than after a transaction has occurred.