How Cloud-based ERP Systems help in Inventory Management?
There is a growing buzz about the ease of cloud-based ERP systems offer when it comes to inventory management.
To understand how cloud-based ERP systems help with inventory management, let us first guess as to what exactly these systems are all about inventory management. Let us also have a brief look at the tasks that need to handle as a part of inventory management.
What is Cloud Based ERP System?
ERP, short for Enterprise Resource Planning, is a system that enables integrated management of various business processes running within an organization.
Advanced technology software and techniques facilitate a Cloud-based ERP system. It quickly and swiftly integrates processes across multiple business functions.
Cloud-based ERP management software host on a cloud computing platform that allows greater accessibility.
Unlike the earlier ERP systems, the data stored on the cloud-based ERP system is not available merely on the company premises but can access from anywhere. The utility of data has accordingly increased, and so is business performance.
What is Inventory Management?
Inventory includes the finished products that businesses house for sale, the raw material required to manufacture different products and the products that are in the process of being made.
The inventory needs to be kept with caution as it either needs to be supplied to the customers directly. It needs to use in the production of the goods that will ultimately provide to the customers.
The task of an inventory manager is that of great responsibility. It does not just involve keeping a check on the inventory stored in warehouses or cold storages.
It also consists in obtaining a list from different sources, transferring it to warehouses, putting it to correct use and generating reports about the available/ sold and required Stock. The ultimate aim of all these activities is to yield profit.
How does a Cloud-based ERP system help in Inventory Management?
Many businesses have switched to cloud-based ERP system for inventory management owing to a large number of benefits it offers.
If you have already taught this new age system to manage inventory, we are sure you must have started yielding its benefits. However, if you are still mulling over whether you should or should not go for it, then the below-mentioned points should help you make a better decision.
Here is how cloud-based ERP systems can help in inventory management:
- Logistics Tracking Made Easy
It can be quite a task to keep track of shipping and logistics, mainly if you supply your goods far and wide. But not when you have cloud-based ERP management software in place.
The receipt of products, their shipment to warehouses, and delivery to the end-users can easily track with this high tech system. Everything gets registered in ERP and can view at any time.
- Increased Sales
The Stock stored in the warehouses across locations can be tracked at any time and from anywhere by way of cloud-based ERP system. So, a field sales executive can easily crack a sale even when he is not carrying the product required by the customer.
- Saves Time
The time spent in looking for goods in different warehouses across locations can save when you have an ERP system installed. You can search for it at just the click of a button with this unique system.
Accomplishing this task can result in delayed delivery of goods that, in turn, can cause customer dissatisfaction. So, ERP can save a lot of time and effort of the employees and increase customer satisfaction.
- Replenishing Stock made Easy.
ERP provides accurate information about the amount of raw material available for the production of goods as well as the finished products available for sale across locations. It is an excellent way to find out just when to restock the inventory, which is crucial for timely production and supply.
- Hassle-Free Tracking/ Managing Surplus Inventory
Just as you can replenish the Stock by looking for the requirement in the cloud-based ERP, you also get the precise information about the surplus inventory. You can take a quick decision on the surplus raw material/ finished goods to avoid wastage/ loss.
- Accurate Report Generation
Accurate reports about the location of the inventory, sales, and accounting can generate with an ERP system. The amount of profit made by inventory sale can also see.
You can even retrieve information about the expenses involved in storing, acquiring, and moving inventory at just the click of a button with cloud-based ERP management software.
Inventory management is crucial to the success of any business. Availability of the right inventory at the right time and place is a sure way to boost your business. Cloud-based ERP system can help with efficient inventory management.