See how an automated solution provides long-term value
The recent supply chain issues that have gripped the UK have highlighted the need for effective inventory management systems and processes, to make sure warehouses have sufficient levels of stock.
Optimising a warehouse is something that should be high on the list of priorities for any type of business that carries stock. On one hand, your purchasing manager will be wary of investing capital used to overstock warehouse shelves. On the other, your sales or production director will be asking questions if popular items are out of stock and orders are left unfulfilled. The most successful companies are those that are able to find the right balance.
The larger your warehouse, or the more diverse your product portfolio, the more complex inventory management becomes. Walking the isles and counting the stock on the shelf isn’t an efficient, or accurate, way of doing things. This is where having the right technology in place pays dividends. Utilising best-in-class inventory management software, like SAP Business One or SAP Business ByDesign, enables businesses to maintain optimal levels of key inventory items. Wasting money on stock that collects dust or desperately chasing suppliers for goods is thankfully a thing of the past.
So how do you do this…
SAP Inventory Management tools
First of all, you’ll want to have a system in place that you can trust. A single source of reliability that provides real-time insights into accurate inventory levels. When this is in place, you’ll want to analyse your inventory turnover ratios. By calculating the number of times that an item is sold over a specific period of time, it’ll give you a good idea of what you’ll need to order in the future to keep operations moving and invoices processed.
Setting up the right reports is also key. By managing stock digitally, you’ll be able to track inventory movements and the frequency of these goods. By creating an Obsolete Items Report you’ll be able to see what items are stored for long periods or not used within your warehouses. This dead stock is wasted capital that is taking up rack space that could be used for faster moving items, especially in an inventory-based business. But it also provides an opportunity for your business to offer discounts on slow moving products or to change your sales or production strategies to completely remove items from your inventory in the future.
You’ve probably already got a fair idea of what your most popular items or materials are within your warehouse. But you still don’t want to be in a position where you are swamped with materials that are cramping your warehouse, waiting for the next big order from a customer. By setting up re-order levels for popular items your inventory management system will alert users when it’s time to create the next purchase order. When using an automated system, line managers receive authorisation requests to approve orders to ensure spending is kept under control.
SAP WMS Software
Seidor specialises in the implementation and support of powerful integrated ERP solutions for the wholesale and distribution industries. Across the globe, we work with all types and sizes of business to help them confidently manage stock with our range of digital tools.
Our SAP-powered solutions are able to capture and process sales orders from popular online ecommerce platforms, store data and automate key processes in a powerful back-office solution, which also seamlessly integrates with popular logistic providers.
Seidor provides SMEs with a holistic platform to efficiently manage critical business workflows. Arrange a demo today with one of our solution experts and make inventory issues a thing of the past.