Taking Control Of Your Inventory Management Costs With An ERP
There is a growing realisation among wholesale distributors that successful inventory management influences customer satisfaction, whilst affecting your ability to meet demand and grow sales revenue. Conversely, attempting to manage a large inventory without the right systems in place can create a range of problems for wholesale distribution companies.
The sorts of challenges that regularly occur include, the proper tracking of inventory, warehouse inefficiency, high reliance on manual labour resources, and a lack of efficiency or flow across resource tasks. Wholesale distributors are also exposed to rapid shifts in customer demand, directly influencing the level and the type of inventory to keep.
Regaining Control Of Your Inventory Management
Optimising inventory management to improve process efficiency can provide many benefits. An inventory management system can reduce the risk of human error while supporting both you and your staff with up to date, ready to use, information about the status of your inventory. With the right systems in place, you can achieve best in class practices, such as
- track products in transit,
- view items received in the warehouse,
- track where products are stored and when they leave your warehouse to be delivered to a customer,
- optimise resource workflows, to ensure maximum productivity and efficiency of operations
How An Inventory Management System Reduces Costs
The right inventory management systems, such as fond within a best of breed ERP system like NetSuite, has repeatedly proven that it can reduce the costs of these complex processes for many businesses.
By introducing leading business practices and documented workflows, standard operating procedures can be implemented. This ensures optimal stock is on hand to fulfill demand while simultaneously reducing your risk of holding excess or obsolete inventory. Systems like NetSuite ERP can also enable you to automate stock replenishment processes.
All these things directly impact your labour resource and warehouse space utilisation, so that you optimise your efficiency, reduce your storage costs, reduce wastage, and ensure you’re maximising your warehousing utilisation.
A cloud ERP system like NetSuite, which operates from a single database, or source of truth, also reduces costs and risk in other areas of your business operations, because it ensures adherence to well defined industry leading practice workflows, so labour resources are optimised across warehousing functions, like picking and packing, while the opportunity for human error is minimised.
Why Inventory Is Best Managed Within An ERP System
An enterprise resource planning (ERP) system that manages inventory also collects, stores, and presents data from every other area of your business, finance, HR and Payroll, manufacturing management, sales and marketing, procurement, and so on. Your entire business can run from one system and all the information from every area is inputted into just one place.
At the executive level of your business, it means that you can extract live accurate information about the different areas of your business. You can view a live P&L statement, or inventory on hand report when its needed, not days after you have asked for it.
For wholesale distributors this improved inventory control coupled with insight from all other areas of the business; reduces the costs of inventory management, while reducing business risk and improving the ability of your business to respond to real world challenges like supply chain disruptions, consumer demand fluctuations and changes in broader business landscape.
How Ndevr Leverages NetSuite ERP To Improve Your Inventory Management
NetSuite ERP provides a single, real-time view of inventory from across all locations and sales channels, allowing businesses to reduce inventory on hand to free up cash while avoiding stockouts. By optimizing inventory levels and ensuring product availability across multiple channels, NetSuite Inventory Management helps businesses keep inventory costs low while exceeding customer expectations.
When Ndevr implements NetSuite ERP, we help you decrease your cost of goods sold, maximise both warehouse and resource utilisation while improving your business capability in areas like seasonal demand planning.
The goal is to boost your profitability with efficient, cost-effective inventory management and live accurate insight into your business operations.
How To Pick A Scalable Inventory Management Solution
Get The Inventory Management System Selection Whitepaper
Once wholesale distributors become established, there is often a need to address business scalability and expansion challenges. Picking the right inventory management solution will be the foundation for taking these next steps toward expansion.