Distribution software can help you optimize inventory management. Good inventory management balances supply and demand, leveraging predictive analytics to ensure adequate inventory levels to meet potential demand. Because inventory represents a major asset, ensuring that stock levels are just right—neither too much nor too little—means you have enough items on hand to fulfill orders but haven't invested more capital than necessary in inventory.

Even though we are now well past the upheaval caused by the global pandemic, supply chains still reverberate from the shock. Globally, problems can still disrupt shipping—weather-related disturbances, political upheaval, and more can create system bottlenecks that can negatively impact your business.

Good visibility into your data is key to navigating supply chain issues without overstocking during periods of lack. Software systems such as enterprise resource planning (ERP) systems provide the best tools to equip you against uncertainty.

Good Inventory Management Saves Money

Aside from the costs of purchasing inventory, there are added costs associated with inventory management, warehousing, and distribution. These costs include everything from renting warehouse space to electricity costs to keep warehouses temperature-controlled and illuminated. Additional costs may include personnel, insurance, and equipment to move, monitor, and control inventory.

Benefits of Using an ERP Integrated with Distribution Software

All manufacturers and distributors can benefit from better inventory management. An ERP and distribution software contribute to improve supply chain management, demand forecasting, and inventory management. The data collected by these systems can be used to make continuous, sustained improvements.

Few companies get inventory management perfect right away. Most require several quarters, if not years, of sales to collect and analyze data to improve inventory management. The complexities of good inventory management—people, processes, shippers, supply chain, and more—can be difficult, if not impossible, to analyze using spreadsheets. Instead, ERP systems offer the best opportunity for companies to contain costs and improve inventory management.

Use Machine Learning and AI to Improve Forecasting

To ensure maximum efficiency and cost savings with your company’s inventory management practices, it pays to use distribution software linked to an ERP that uses the latest technology.

Machine learning (ML) and artificial intelligence (AI) are included in many ERPs, including SYSPRO. These tools can analyze large volumes of historical data and improve sales forecasting.

For example, you may have customers who increase their order size every July in preparation for the holiday season. Using AI, you can predict these order increases and ensure that your warehouse and distribution center is equipped with both products and the manpower needed to ensure the items get to the customer quickly.

SYSPRO ERP

SYSPRO ERP is designed to enhance distribution operations and improve efficiency. With the right ERP, you'll achieve 360-degree visibility into all aspects of operations, including divisions and locations. This data will help you deliver products faster, reduce errors, and manage the entire value chain from start to finish with improved efficiency.

Features such as order processing, inventory management, integration, sales automation, multi-site support, and better forecasting and planning all lead to enhanced overall inventory management.

The key to improved inventory management is matching customer demand with supply. The better you are able to align inventory levels with demand, the more streamlined and cost efficient your company. With the right system providing the latest tools, you’re well on your way to optimizing inventory and enhancing ROI.

Let PositiveVision Assist You with Your Distribution Software Selection

PositiveVision has been serving the needs of the business community in Chicago and the area for more than 30 years. Our product experts will be happy to help guide you through a high-tech transition at your company. Contact us today to speak to one of our product experts about a custom solution for your business. When you reach out, ask about our software training services for your team.

Robert Baran

Robert Baran is the founder and President of PositiveVision. He has worked in a variety of positions including system analyst, computer consultant and programmer, project manager, and division manager.