Choosing the inventory management software solution that works best for your manufacturing and distribution company should be on your list of must-haves because you have to know where your company’s inventory is at all times. The inventory management software for manufacturing and distribution companies must help you quickly answer the What, Where, When, and How questions.
What do I actually have?
If the inventory management software being used by a business doesn’t reflect the real quantity of product, how will orders be filled? If reports indicate that there are a certain number of an item, then that information directly affects the company’s ability to meet consumer demand.
Where is it?
If the report indicates that there are X number of Product Y, then it should also be easy to find. It’s either in warehouse #3 on shelf Q5 or it’s not. If the report says it’s supposed to be there, why isn’t it?
When was it ordered?
Or when will it need to be reordered? If shelf Q5 is empty of Product Y, does that mean it’s something that will arrive shortly so orders can be filled? If it hasn’t yet been ordered, why hasn’t it?
How often is Product Y sold?
If Product Y often runs out, can the price be adjusted to increase the profit margin since it’s in high demand? Or does Product Y get dusty on shelf Q5 as it awaits purchase and the last one sold sat there for 7 months?
It’s imperative that the processing of orders is accomplished as efficiently as possible. Making sure the inventory is on hand often relies on the accuracy of the global visibility and automated reporting of a company’s inventory management software. Accurately forecasting purchasing needs is a critical component when dealing with inventory control, order entry, and purchasing. Integrating these processes allows distributors to have the ability to assess historical data, upcoming orders and forecasts, and predictable trends, including seasonal demand changes, in order to plan their purchasing.
Successfully keeping the accurate amount of inventory to meet customer demands also improves turnaround time and shortens order cycles. Consumers are increasingly looking at things such as delivery time in order to make their buying decisions, so optimally managing your inventory can mean the difference between making the sale and losing out to your competitors.
Real Life Example
A manufacturer of camping gear was having ongoing struggles maintaining inventory accuracy. At the end of each year, they would conduct a full count and be shocked to find only about 20 percent of their counts were accurate. In fall 2014, the company reached out to Silverware to have the team implement NAV’s Warehouse Management module. The implementation included training their staff on the new system and helping them learn new steps for their shipping and receiving processes. The new system provides tracking of receipts, product movement and shipments.
Eric Moe, business analyst for Industrial Revolution explains, “The WMS helps ensure our staff now follows proper protocol. After 10 months after the implementation, we did another full inventory count. Our inventory was 70 percent accurate, and write-offs were down to .2 percent. I expect our next count will show even more improvement and an increase in accuracy.”
Silverware’s inventory management solution helps businesses measurably increase revenue and profit by improving the relationships between customers, orders, and inventory. If your inventory management software doesn’t answer the What, Where, When, and How questions, contact Silverware today. And if you’re ready to grow your business, get your free organizational readiness assessment.