Inventory Accuracy is Just One Hallmark of a Great Inventory Management System
Does your inventory management system have what it takes to boost your business next year? Inventory accuracy is just one part of a great inventory system. Systems such as Sage Inventory Advisor have all the right stuff to maximize profits, minimize losses, and manage your inventory like a pro. Let’s look at some of the characteristics of a terrific inventory management system.
Why is a good inventory management system important? For most companies, inventory represents a hefty investment of capital. Products remaining idle and collecting dust in the warehouse are costly. Not only does a business pay to produce laggards, it must also pay to warehouse and maintain them.
Good inventory management reduces excess goods, maintains adequate stock, and optimizes warehouse space by thoughtful placement of shelves and bins. Inventory management is both an art and a science, fueled by accurate data from inventory systems married to your company’s ERP systems and more. The right inventory management system can help your company control costs and maximize profits no matter what industry you are in.
Five Characteristics of Terrific Inventory Management
- Well-organized inventory: Inventory that is organized well is placed strategically throughout the warehouse to minimize the amount of time it takes to pick, pack, and ship. Frequently purchased items may be placed near the packing area. Bins and shelves are carefully labeled. If barcodes are used to identify goods in receiving, the bar codes in the shelving areas are matched. All areas are kept clean so that goods look appealing.
- Inventory accuracy: Inventory accuracy means that both starting and periodic stock counts are accurate. Barcode scanners enhance inventory accuracy by reducing clerical errors and miscounts. If manual systems are still used, inventory is taken regularly and systems are updated to reflect the latest counts.
- Consistent item names and numbers: A good inventory management system uses a consistent nomenclature and/or numbering system for parts, products, and goods. This makes it easy for workers to learn the products and find them quickly in the warehouse and in the systems.
- Integration with ERP and business systems: The best inventory management systems integrate easily with ERP systems and other back office systems. Sage products, such as Sage Inventory Advisor and Sage ERP X3 integrate well and can easily add functions for other business areas if needed.
- Well-trained workers: A system is only as good as the people using it. Warehouse management and inventory management includes having people trained on how to handle the stock, take inventory, run the systems and equipment, and perform their job duties safely throughout the warehouse. Hire the best people you can afford and invest in on-the-job training to ensure that the people running and working in your warehouse can effectively use all inventory management systems to run the warehouse.
Inventory Accuracy with Sage Inventory Advisor
You can improve inventory accuracy with a good system. Sage Inventory Advisor is a cost-effective solution that uses data from Sage EM (formerly known as Sage X3) and Sage 300cloud (formerly known as Sage 300) to help you manage all aspects of your inventory.
Sage Inventory Advisor can help you:
- Reduce excess inventory
- Reduce stock-outs
- Reduce time spent on manual tasks and labor
- Reduce mistakes
- Improve forecasting
- Improve fill rates
- Improve inventory replenishment data visibility
Optimize your entire supply chain with better data. With Sage Inventory Advisor and ERP system such as Sage 300cloud (formerly known as Sage 300) and Sage EM (formerly known as Sage X3), you can transform your business.
We’d like to invite you to check out our new videos highlighting manufacturing ERP software such as Sage EM (formerly known as Sage X3) and other products that will help you maximize the data from your business. Learn more on our website.
Learn More about Inventory Management Systems
IWI Consulting offers inventory management systems, ERP consulting and systems to help you manage your data efficiently, and much more. With the right systems, you’ll never feel as if you’re drowning in data. We can help you select the best system for your needs and learn how to use it for maximum benefit. Contact IWI Consulting at 1-866-916-3851.