“Big data” is a big deal. Have you heard this “buzzword” recently? Big data is so important, and thanks to new inventory optimization tools and technologies, the power of big data is being harnessed like never before. To learn more about inventory optimization in addition to physical inventory control and inventory planning that make up the inventory management process, visit here. Now, let’s dive in deeper to big data and how it can be used best to improve inventory management.
The Internet, mobile technology, and software advancements have all enabled businesses to amass and expand gigantic datasets within their enterprise resource planning (ERP) software. Inventory optimization is only possible because of the capabilities offered by these technologies. The data found within enterprise software has been used to prepare tax returns and financial statements plus improve productivity through information sharing within and outside of an enterprise to facilitate communication and collaboration between stakeholders.
Enterprise software has provided ways to manipulate data sets within customized financial reports in new and improved ways. The ERP solutions offer the potential to have deep insight into operational trends, customer behavior, and ways to improve efficiency of business models. The goal of data has always been to use it for improved agility and responsiveness. With big data and ERP solutions such as Sage 300 ERP or Sage ERP X3, companies now have the ability to use more massive amounts of data better than ever with steady advancements in data collection and use functionalities.
Even still, dataset sizes have accumulated and grown so consistently that they have outpaced technology’s ability to realize, understand, and use the full potential of the intelligence within all of that data. Enterprise software houses lots of data related to inventory, but this must be used effectively. Instead of simply tracking the amounts of inventory that are on hand and alerting workers when levels of inventory run low, the software should be able to do so much more. With inventory optimization systems, technology is showing signs of catching up with the large quantities of data and using it more effectively while doing more with it overall.
Remember that there is a consistent battle within manufacturing and distributions companies to effectively balance having enough inventory in stock to keep up with customer requests and demands while simultaneously not having too much inventory on hand. This plus the complex organizational needs and fluctuations of supply and demand coupled with complexities in having tons of SKUs, global supply chains, and far-flung warehouses have real impacts on inventory levels. Using big data in modern inventory optimization systems that are designed to exploit data generated from everywhere within enterprise software is essential to truly honing in on success in inventory management.
Ultimately, inventory optimization depends upon decisions made by inventory specialists and senior management based upon considerations unique to their companies coupled with effective use of big data. Better decisions are made when balancing trade-offs that depend on shifting goals influenced by events on the ground. Ultimately, inventory managers can significantly impact overall competitiveness and profitability.
Two ERP software offerings from IWI Consulting meet the needs your company has to maximize use of big data and improve inventory management. They are Sage 300 ERP and Sage ERP X3. Learn more about them by visiting our ERP Solutions page here. Then, download our whitepaper “Better Inventory Management: Big Challenges, Big Data, Emerging Solutions” for further information on big data and its important uses in improving inventory management.
Our small and dedicated team specializes in helping small-to-medium size Canadian businesses and non-profits select and adapt Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Human Resource Management (HRMS) and IT services. With IWI’s 15 years in business and 100 plus years of combined experience, IWI has helped hundreds of manufacturing, distribution, and financial service companies gain efficiency, grow, and lower their operating costs.
With the unique combination of industry knowledge and diverse technology expertise, IWI provides cost-effective solutions to help clients gain a competitive edge. As a Sage business partner, servicing the Greater Toronto Area, we support evaluation and implementation of operations and finance systems to optimize technology, ensuring high return on investment with a quick and painless transition to new software.