How a sophisticated business management solution improves cash flow
Full visibility to your inventory is vital to any wholesale and distribution company, and typically that requires an effective information system. Without that visibility you’ll be unable to pinpoint any cost saving opportunities – even if they’re hiding in plain sight. And you struggle to control your costs.
Using the right technology to manage inventory has a number of benefits:
- Inventory replenishment – accumulating unsold inventory is bad for the bottom line. An inventory management system means you can plan for the arrival of new supply before it’s needed, or just before the supply runs out to prevent shortages. It’s a cost effective way to meet customer demand.
- Safety stock – this is the customary way to compensate for variations such as swings in demand and other unexpected changes in demand or supply. Automation is the key to reducing error levels and setting up safety stock levels so you can automatically restock as required.
- Automated data collection – this can be easily automated to save time and eliminate errors. You can assign serial numbers upon receiving, issuing, or assembling each item, and then track inventory by that serial number. You can even assign specific valuations to certain numbers in order to track costs.
- Business intelligence – this is all about tapping into data that you already have to make better business decisions. Accurate tracking and forecasting decreases the amount of unused inventory and waste, which in turn reduces overall costs.
- Real-time data access – when everyone from your sales people to your field staff are able to access data in real time it creates complete visibility and control across your supply chain. This means you can accurately forecast demand and make better purchasing decisions.
Impacting the bottom line
The right inventory management system can improve your profitability in various ways. It will help you:
- Process a higher number of goods without increasing your staff numbers
- Optimise your stock holding by calculating min and max stock levels
- Easily access stock and move it faster
- Know which products are likely to be sold together
- Reduce time and effort for your pickers and packers
- Deliver in full; on time and every time
- Change pricing to reflect changes in supplier costs, foreign exchange or special discounts
- Do everything in bulk – including stock release, automatically generated packing slips and invoicing
These features and more will not only save you time and money, but also enhance service delivery and accuracy.
Having a system that removes the drudgery and repetitive tasks from a job doesn’t just make things more interesting, it also frees up your staff to do work that adds value. And it’s really satisfying when a team or individual can see that they’ve hit a DIFOT target or increased sales. If this information is accessible and visible, staff are encouraged to make that extra effort to hit targets.
It’s much easier to have meaningful discussions at both a management and operational level if you’re all sharing the same version of the truth. All discussions are going to start with the same base-line data.
Investing in the right solution
An intelligent and flexible inventory management system delivers some key benefits:
- Improved operations
An effective, integrated system gives you certainty around the integrity of your business data, financial management and business processes.
- Regulatory compliance
Build HR regulations, health and safety and any other industry specific standards into the software, so you maintain compliance.
- Retaining business knowledge
Retain internal process knowledge, so it’s not lost when staff leave.
- Working to best-practice standards
Building operational intelligence into your systems and processes lets you maintain these standards.
To make good business decisions, you need good data and governance thereof
Endeavour Solutions are experts in the cloud-based MYOB Advanced ERP solution. We have found it gives clients a way to efficiently manage their distribution process with system-wide inventory control and effective inventory management software – including real-time access to inventory in transit, available inventory and inventory costs.