If you have a warehouse, chances are you are always looking for ways to cut operational costs, improve productivity and reduce errors. Using supply chain management software or ERP systems can help you achieve these goals by providing the data you need to take control of your operations.

For someone who doesn’t work in a warehouse, inventory management sounds like a straightforward, simple process. You mark goods as they arrive in your warehouse and cross them off when they leave. Simple, right? Of course, if you manage a warehouse, you know supply chain management can be a very complex job. Your inventory may consist of thousands of SKUs, multiple bin locations, and hundreds of orders per day. You need to deal with suppliers, changes in customer demand, and other departments within the company.

That’s why a good inventory management system should start with the very best data possible. Supply chain management software can help ease the difficulty of complex systems and help you improve your operations.

It All Starts with Great Inventory Data

Having the right data is critical to making the best decisions possible. Good data can be captured through warehouse barcoding systems and passed on through integration with other systems. Using supply chain management software and your ERP system, such as Sage 300 or SYSPRO, you can develop actionable insights to help you run your business more effectively.

Some insights that you can gain from better inventory data collection and management include:

• Improved inventory accuracy by reducing manual data input and updating stock counts automatically
• Elimination of redundant orders
• Reduction in excess inventory
• Proactive planning to reduce overstocks and shortages
• Improved demand forecasting
• Reduction in “stale” or old inventory.

Using Supply Chain Management Software to Become More Profitable

There are four simple yet proven methods of better inventory management that you can use in your operations to increase profits and reduce costs. These include:

1. Maintaining accurate and timely records: Both accuracy and immediacy are necessary for businesses to control inventory costs. You need to know your stock count now, not yesterday or last week, in order to provide accurate information to customers and suppliers. Automating your inventory processes and data retrieval can enhance both accuracy and timeliness of data.
2. Proactive planning: Once you have inventory data, you can begin to see patterns and trends that lead to better predictive ordering. The better you get at proactive planning, the better you can fulfill orders and keep customers satisfied.
3. System improvements: It’s not a “once and done” process. ERP systems and supply chain management together can help you spot areas for improvement. Steady, incremental improvement makes your business more competitive and effective.
4. Reducing fixed overhead costs: Maintaining warehouse space can be expensive. Between leases, building maintenance, energy costs and more; the fewer you need, the better. When you can predict inventory levels with greater accuracy, you no longer need to keep as many items in stock. You can reduce the amount of inventory space needed and save on fixed costs.

The more complex your warehousing needs, the more complex the supply chain management software and ERP system requirements. But implementing one or both can, in the long run, save your company a great deal of time and effort while improving profitability. As your company becomes more efficient, the cost savings can be channeled into other projects that can grow your business.

Supply Chain Management Software from PositiveVision

PositiveVision offers supply chain management software integrated with ERP systems, SYSPRO  or Sage 300. The better your data, the better your insights and more you can gain from business systems.  Contact us to talk about ways to improve your supply chain management.