Supply Chain Chaos? Use the Right Inventory Management Tools
In a world where supply chains are being strained to their maximum capacity and lead times have become unreliable, inventory management is crucial. As a business you need certainty in what you have on the ground along with a robust and trustworthy forecasting methodology. ERP software, designed specifically for your industry, helps solve this problem.
Inventory management can be a very difficult task for any business even if you have the best people running operations. Common pitfalls that we often encounter prior to implementation of Discovery Management Software® ERP (DMS) are the following:
- Lag in actual usage data
- Tracking system errors and bad data
- Human error
- No system for inventory return
This is where deploying an ERP system designed specifically for the heavy industrial sector will minimize these issues and reduce the amount of people needed to manage the process. Discovery’s ERP addresses the above problems by connecting all your operational transactions. For example, when you plan a job, the system allows you to reserve the equipment, then once you have won the work you can allocate it to the job. The items are then picked/staged from inventory, with exact volumes fed back to the system updating inventory in real time. Once you complete the job you can re-assign rentals and returns to inventory, ensuring volumes are not lost and inventory is up to date. The ERP system creates a workflow that enables your employees to update inventory per their natural working methods and not retroactively reconcile volumes or update paperwork.
Implementing an ERP system designed for industrial companies means you can maximize your capital by having accurate inventory counts, eliminating the common problem of not knowing what you can sell or rent, potentially losing out on work.
Inventory management unfortunately is only half of the challenge in dealing with inventory. Predicting what you need on the ground is critical for any business to maximize cash conversion and better serve your clients. Common pitfalls that we often encounter prior to implementation of Discovery Management Software® ERP (DMS) are the following:
- Knowledge concentration
- Fluctuations in order performance
- Ordering from inaccurate inventory levels
- A lag in inventory data impacting order decisions
With Discovery’s ERP inventory forecasting system, we have developed tools which are integrated into the software that can help you automate your inventory replenishment. Because your inventories are always up to date and accessible with DMS, you can tailor your system with simple thresholds or use more detailed algorithms to best suit your replenishment needs. The system will generate suggested orders for your purchaser, minimizing workloads and staying ahead of shortages.
This means you can maximize your cash and come through for your clients. Using technology to your advantage by avoiding spreadsheets or unconnected systems will allow your business to surge past the competition.