How SMEs can Improve Inventory Management with ERP Software

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How SMEs can Improve Inventory Management with ERP Software

Enterprise Resource Planning (ERP) solution is highly integrated software for inventory management that serves diverse business functions. Inventory management forms a part of ERP software but is an extremely crucial part of the solution. Whether it is smooth manufacturing, excellent customer experience or healthy financials – inventory management has a key role to play. 

But how can SMEs improve their inventory management with ERP? Most small businesses follow a custom manufacturing process which leaves a lot of bottlenecks and challenges in the availability of raw materials, and parts required to manufacture the end products. Also, there might not be enough working capital and warehouse space to stock the goods in advance. 

Implementing ERP software for inventory management and adopting inventory management best practices will ensure lean inventory cycles – availability of the right quantity of materials and parts at the right time to keep the manufacturing process optimized at all times. Take a look at how SMEs can improve inventory management with ERP software: 

Automate Inventory Management

Real-time inventory is not something that can be achieved with the help of books or spreadsheets. Manual inventory management is an extremely time consuming and painstaking task. Often the time taken is so much that the updates lose their relevance and accuracy by the time it is done. On top of it, there may be manual errors and mismatches which call for more man-hours to analyze the scenario. 

ERP system in itself acts as software for inventory management as it is highly integrated – which means your inventory is updated every time purchase, in-house manufacturing, outsourced manufacturing, and sales happen. Your inventory remains updated and real all the time with little to no chances of discrepancy. 

Tracking Inventory at any Point

Manual inventory management doesn’t allow you to easily track inventory movement at any given point in time. As a result, you stay unaware of how the inventory is being used. 

Using ERP for inventory management helps you track raw materials, work-in-progress, and finished products not only for in-house production processes but also in outsourced manufacturing processes. Management specific reports can be pulled easily from time to time. Also, tracking wastage and scraps becomes very easy. 

Forecast & Restock inventory

Since ERP is integrated with the processes of other departments it automates manufacturing, sales, and purchase data. As a result, inventory is updated at all given points of time. It becomes easier to forecast inventory requirements based on the order such that raw-material can be restocked at the right time to ensure a lean manufacturing process. With inventory software for small businesses it becomes easy to manage lead time and inventory turnover for optimized productivity cycles.

Also, it helps you notice excess inventory that can be returned to bring down the unwanted warehouse cost. 

Wrap Up

ERP software for inventory management is integrated in such a manner that it reduces manual intervention, improves the accuracy of data, saves time and money. This fully integrated solution allows the supervisors and management to gain a real-time view of inventory data which can be used to streamline business processes further improving revenue generation. 

Turqosoft is being used across many manufacturing businesses in Kerala. We are among the best Inventory Management Software in India. If you are looking to increase efficiency of your inventory department connect with us through email or call us on +91 9841205845. Also, you can follow us on LinkedIn, Facebook, Twitter, or Instagram for a regular dose of interesting updates.

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