Squeeze Play: Taking Stock of Lower Inventory Costs with Innovative ERP
I don't know about you, but I like to squeeze every last bit of paste out of the toothpaste tube; I like to make sure all the ketchup in the bottle gets onto someone's burger or fries. I'm the one you hear in the kitchen clinking around in the jelly jar with my knife scooping up the last of the boysenberry jam.
In other words, I like to get my money's worth out of the personal inventory I pay for.
I bet you're the same when it comes to your corporate inventory. The more you get out of it, the less it costs you to carry it, the better your bottom line. A well-designed ERP, one that integrates everything from your suppliers to your distributors to your customers can do just that.
Consider these tips to reduce your inventory carrying costs with a fully integrated ERP:
Visibility is Vital
Use a real-time inventory dashboard to send you alerts, make suggestions about re-orders, under-minimum levels, turns, and fill-rates. You'll be more responsive to demand, improving cash flow and improving customer satisfaction levels.
Increased visibility into demand improves fill rates thus reducing backorders. The system can even suggest purchasing strategies you might not have thought of before.
Landed-cost tracking ensures you have the most accurate inventory valuation and margins.
Automate backorder processing in your ERP and you'll shorten the time needed to fill them and satisfy customer's anxieties.
Real-time inventory with end-to-end traceability helps you keep close tabs on finished goods and raw material usage; it ensures you're achieving your ROI targets and, with immediate visibility into your inventory, productivity is enhanced because time isn't lost waiting for materials that weren't ordered or received in time.
Advanced analytical tools provide improved demand planning and forecasting. Expedited purchasing and better visibility to demand also reduces overstocks, cutting carrying costs even further.
Optimize your buying power by having your ERP automatically search for vendor targets across product lines to gain special pricing and discounts.
Integrated Warehouse Management System for the Power Punch
An integrated WMS improves inventory accuracy and increase warehouse efficiency.
Implement WMS with RF shipping verification to actual orders and you'll reduce costs, minimize credit memos, and enhance your customer's experience building brand loyalty and repeat business.
Implement WMS with RF or voice-directed picking and you'll increase order to fulfillment speed, reduce overhead, increase turns, lower expedited freight costs, and increase customer satisfaction.
Learn more by downloading our How To Innovate How To Implement Guides:
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