Today, more than half of companies have a permanent inventory management strategy*. This means that every one of their transactions is recorded in real time and that product quantities are thus automatically updated in their systems. For this to happen, companies need a high-performance ERP system with advanced inventory-management features. This gives the users involved real-time access to the various quantities of products in stock.
Why do companies opt for this method of stocktaking and inventory management? What are its advantages over traditional methods? Is it really worthwhile to invest in an ERP solution which provides inventory data in real time? In this article, I will discuss the benefits of this type of solution in order to help you determine whether it’s the right choice for your business.
Why Real-Time Data?
For various reasons, a vast number of companies have an ever-growing need to access their data in real time. Some want to be able to continuously assess market conditions and operational performance. Others want better management of the main links in the supply chain, namely, cost control, customer service, and planning.
Businesses’ increasing demand for instant information has led to the creation of ERP solutions with advanced real-time consumption data functionalities. These solutions allow manufacturers, retailers and franchisers, and distribution companies to collect and process inventory and sales data in real time and to render these data usable in a matter of seconds.
Never Have Too Much Stock, but Never Be Out of Stock
The choice to use ERP software for inventory management and stocktaking is based on a need to have the right products in the right place, at the right time, and in the right amount. To achieve this, a company must be able to adjust its inventory responsively, in accordance with real-time sales data, and to carefully control inventory at every stage of the distribution cycle.
Real-time inventory data give business owners an in-depth view of their business activities. Managers are able to check sales and inventory reports which are continuously updated, making it possible to improve and speed up the decision-making process. Managers can thus make informed decisions when ordering products and material, ensuring that they have sufficient stock to meet clients’ expected needs while also ensuring that they don’t overstock. An ERP solution can thus help to increase a company’s agility, generate savings, increase sales, and improve customer service.
In addition to basic ERP software, these systems can include bar-code scanners or radio frequency identification (RFID) readers with which employees can scan and track items. Distributors can also equip themselves with printers which can create customized bar codes and price labels. Sales-floor employees using these tools help to keep inventory quantities up to date and ensure that the prices displayed are accurate.
Time Is Money. We Know.
Having access to information at the very moment you need it makes the difference between productivity and wasted resources. ERP solutions which provide real-time data clear the way for more effective and more profitable businesses by making sure that managers have the information they need at their fingertips.
* According to a report by Wasp Barcode Technologies