11 benefits of using ERP software to improve inventory management

Using software can improve inventory management and deliver concrete results within the first few days of its implementation. What are the 11 advantages associated with ERP software packages? This article sheds light on all the questions related to this subject.

Why is inventory management essential to developing your business?

Focusing on customer service is often a key strategy to ensure the success of a business, company or organisation. To this end, improving inventory management is a “key step” to satisfying each customer. In fact, how can you respond to the requests from your prospective customers by providing inaccurate information?

With software ERP, there are 3 points to consider when it comes to inventory management:

• Real-time updating of information – provides customer service with access to a reliable database and helps promote optimal lead conversion.
• Clear answers – of course, the quick identification of current inventories ensures that prospective customers have valuable access to your services.
• Optimal inventory management equals competitive advantage – ensuring optimal inventory management is a formidable solution to stand out from other competing models.

Obviously, selecting the right IT tools is an essential step in improving the inventory management of a business, company or organization. While some professionals prefer Excel to track current inventory, Microsoft’s popular solution has many shortcomings.

The use of ERP software thus becomes a suitable response to each problem, thanks to its exclusive advantages.

ERP software: 11 key advantages to improve inventory management

1.    Full integration of information

ERP software makes it possible to integrate all relevant information regarding inventory management (incoming or outgoing) through an automated process. Manual analyses thus become a thing of the past. This advantage therefore directly addresses the risks of overstocking and shortages. Furthermore, the prioritization of monitoring provides a forecast of demand that is often crucial for each business, company or organization.

2.    Better identification of products

Identifying your products by codes and numbers allows you to have a global and detailed overview of your stocks. This advantage optimizes your professionals’ work organization. Expiry dates are provided in real time thanks to your ERP software. Lastly, the geolocation of the products is fast and accurate; just a few clicks are enough to obtain this information and improve your customer relations.

3.    Better control and safety of your inventory

Consulting Excel files can be a problem when access to this data cannot be fully controlled, whether the documents are stored locally or via a cloud service. ERP software allows you to monitor each authorization issued to your employees to secure your data and improve the inventory management of your business, company or organization.

4.    Improving the flow of merchandise

Flow management is an essential feature to improve the monitoring of your current inventory. The real-time data provided by your ERP software allows you to develop and apply the best strategies while optimising the flow of your products. Once again, tracking your goods from unique numbering systems provides inventory control for a competitive advantage.

5.    Automation of purchase orders

ERP software allows you to automate your purchase orders associated with your suppliers or customers. Thus, thanks to the commercial management module of your integrated management software package, up-to-date accounting data makes it possible to determine future restocking requirements while limiting the number of steps to be taken. The transition of information between each department can thus be instantaneous while facilitating an optimal organization.

6.    Automation of inventory restocking

Without the benefit of up-to-date information, inventory restocking decisions can result in “questionable” inventory management or shortages that can be detrimental to every business, company or organization. Implementing ERP software allows these processes to be automated by incorporating data updated in real time.

7.    Effectiveness of operations and logistics management

The implementation of ERP software in a business, company or organization is a key event for teams managing logistics operations. Analysis efficiency is of course increased. Similarly, the simplified interface of an ERP software package provides greater accessibility for each employee.

8.    Improved decision-making

The centralization of relevant data via an automated system reduces the work of employees assigned to manage a spreadsheet. The reports obtained are more quickly actionable and support better strategic decisions regarding product restocking. In addition, ERP software can integrate accounting information from each balance sheet. This information will then be updated once your merchandise has been received.

9.    Control over financial reports

By using ERP software, consistency is ensured between each department. This advantage avoids delays related to business procedures thanks to the control of financial reports and graphs (these are updated in real time during each variation pertaining to inventory management).

10. Improvement of the customers service

The pace of business is accelerating. Time is a resource that we all lack. In order to adequately respond to your customers’ requests, your order-taking colleagues must have the necessary information on hand and must have confidence in it: quantity in stock, location, selling price, order quantity, date of receipt, etc. They will then be able to offer – quickly and clearly – solutions for your customers in need of parts or equipment.

In addition, it is possible (and recommended) to integrate ERP software with the CRM of a business, company or organization. This synchronization is ideal for centralizing all relevant information from a single dashboard.

11. Analyze the purchasing behaviour of your customers

Finally, inventory management using ERP software allows you to analyze the purchasing behaviour of your customers in order to optimize your sales strategies. The frequency of restocking based on trends can be re-evaluated in order to improve the results. Identifying off-peak periods is another considerable advantage for improving inventory management.

Conclusion

This article has clearly presented the many advantages associated with inventory management using ERP software. The implementation of an ERP package is therefore a recommended solution for every professional seeking to optimize their business activities.

Would you like to know more about ERP software ? Gestisoft offers you personalized support in order to help you determine the most appropriate solution according to the profile of your business, company or organization.

Please do not hesitate to contact us via our website in order to take advantage of a detailed consultation.