For many small and midsize businesses, inventory costs are among the highest. Delivering on promises and maintaining high customer satisfaction depend on balancing precise inventory management with economical production.
Have you thought about how well your existing inventory system is doing in your desire to simplify and optimize your manufacturing operations? An obsolete or ineffective platform can slow down production, aggravate consumers, and affect your financial results.
A contemporary ERP system may provide you with the visibility you need to regulate inventory levels and manage your supply. Therefore, You can satisfy your needs for inventory and production management with the aid of the SAP B1 application, which provides best-practice capabilities.
Common challenges without an inventory system
Tracking Problems
It is challenging for businesses to follow the flow of raw materials and completed items. Therefore, companies must dedicate certain personnel to the labor-intensive and time-consuming manual procedure of tracking inventories each day.
Complicated Supply Chains
One further significant difficulty for contemporary firms is supply chain management. The supply chain is still difficult for businesses to manage since it is closely tied to several departments, including procurement, production, and finance.
Poor Order Management
It takes a lot of time to manually manage orders for the order or sales department, and when a company grows in size or scope, this process gets more challenging. Man-made mistakes can occur while managing orders manually.
Inventory Process Errors and Losses
Inventory systems involve a variety of factors, and if your team overlooks even one of them, it’s likely that the entire process will go wrong and your business will suffer losses in both overstock and shortage situations.
Overstocking and poor process efficiency
Overstocking or product shortages may result from human inventory software processes that are not accurate. Both these circumstances make the procedure dangerous for any business and ineffective.
Product shortages are common.
Product shortages are caused by poor inventory or commodities management. Organizations could not have a good understanding of how different items move, and as a result, they may have to cope with a regular scarcity of products with high demand.
How SAP Business One inventory management software helps businesses
SAP B1 has a well-developed inventory system. For both big and new organizations, the inventory component enables procedures that optimize inventory management. Hence, by managing master objects and data records, among other things, it streamlines processes for enterprises. Also helps to accomplish goals like cutting expenses, reducing inventory levels, and increasing income for the business, the inventory system offers a wide range of extra features.
Inventory control and warehouse management
Inventory system with numerous costing models, Item Master Data maintenance, multiple units of measure, and comprehensive pricing choices
Management of bin placement
Unlimited warehouses, Pick & Pack capabilities, several sub zones, and allocation rules setup
Control of goods reception and issues
Record goods coming in and going out, keep track of stock locations and transfers, permit consignment, drop-shipping, and other order types, and do inventory and cycle counts.
Effective reporting
Personalized dashboards or other formats are available for real-time reporting of all Inventory data.