Paco Underhill, an environmental psychologist and author profiled customer preferences to help stores present products in a particular layout for greater visibility and transformed the way stores display products. In very much the same way, inventory of online businesses need to be visible to customers and clients to induce confidence. Personnel managing key functions in inventory management need to follow best practices that will bring visibility while managing inventories better. Five practices that will make a huge difference are profiled below:
Optimized stock levels
It is important that optimal stock levels are maintained always, to ensure that production lines function at optimised capacity, keeping supply chain busy. Businesses can rely on real-time updates of data to maintained optimised inventory levels, and eliminate stock outs, while meeting sudden surge in demands. An ERP solution provides data and reports to help maintain optimum inventory levels.
Inventory tracking throughout the supply chain
Tracking of inventory that is restricted to just in-house operations will certainly not bring in the desired results of inventory visibility. It needs to straddle all components of the supply chain – inbound, outbound, warehousing, and in-transit.
Cycle count of inventory subsets
This is another important aspect in inventory management. Routine inventory audits in subsets are important for an accurate reflection of figures. This will help overcome and manage the errors in reporting, which will give greater accuracy to inventory visibility.
Integrating with ERP systems
Integrating inventory with ERP systems will lend greater teeth to inventory management. Forecasting will be sharper, distribution will be planned better, and capacity planning will rely on accurate data that is generated and shared through ERP systems.
Striking the right balance in inventory planning
Levels of inventory need to be lean, but adequate. Striking this balance is of paramount importance. This cannot not be achieved without data from other components – manufacturing, merchandising etc. An integrated system will help managers to plan inventories better.
ORION ERP boasts of features that help to improve inventory visibility with solutions that are client-centric, and industry specific. With the ORION ERP Solution businesses have experienced the ripple effect as various features integrate seamlessly into workflows and processes to combine and deliver greater efficiency, while cutting costs and improving margins.