Supply chain management software sheds light on warehouse issues, inventory levels, and changes in customer demand. Using warehouse management tools, managers can better predict demand, ship orders, interact with customers, and invest in the business confidently. Improving inventory management will promote company profitability and success.
Insights into the Importance of Supply Chain Visibility
Supply chain visibility is a top concern for manufacturers and distributors. Managers are becoming more aware of the importance of real-time visibility and control of inventory. In manufacturing companies, inventory can comprise as much as 50% of capital and the major cost component is often materials. Although inventory is listed as an asset on the balance sheet, it creates liabilities by incurring storage costs and tying up cash and working capital. The more insights businesses have about their inventory and the entire supply chain, the better decisions managers can make and the more successful the business will be.
Nothing is more frustrating to customers than to hear “I don’t know” when they call and ask where their orders are in the shipping process. Businesses depend on reliable shipments to keep their doors open. Even so, companies are experiencing challenges in maintaining reliable shipments.
Managers need to know what is happening with inventory in order to best respond to their customers. Warehouse management systems make this easy by providing the real-time information needed to determine optimal inventory levels. Through integration with enterprise software such as Sage 300 or SYSPRO, communication across departments and even outside of the organization can provide actionable intelligence. Using this data, better decisions can be made about stock levels, replenishment schedules and orders.
Functions of Supply Chain Management Software
Inventory optimization is made possible with a warehouse management system integrated with ERP software. Using these tools enable managers to better balance carrying sufficient inventory to meet customer demand and minimizing inventory to reduce costs. This age-old struggle is automated with supply chain management software. With an effective inventory management system, you can:
- Optimize stock levels and improve inventory accuracy and movement
- Support regulatory compliance for industries that require product traceability
- Automate the order and replenishment process
- Improve customer service levels by having the right stock at the right time
- Manage inventory valuations and costs
To learn more about gaining visibility into your inventory using enterprise software, download our whitepaper, Better Inventory Management: Big Challenges, Big Data, Emerging Solutions.
Good Supply Chain Management Engenders Confidence
It’s really no surprise that investments into fulfillment accuracy generate an improvement in business. When customers get what they paid for on time and in good condition, they are satisfied with their order. When service is even better than they expected thanks to robust enterprise software that includes supply chain management, they feel confident in their business decisions. Good service engenders confidence in a vendor, which in turn can lead to repeat business.
It’s an old saying that 80 percent of your business comes from 20 percent of your customers, but ask any business person and they’ll say that it’s true. The less you need to spend on customer acquisition, the better. With good warehouse management and an ERP solution in place, you may find that customers order for the quality of your goods but return for the excellent service.
Inventory Management Solutions from PositiveVision
PositiveVision offers warehouse management and inventory control systems integrated with our supported ERP software, SYSPRO or Sage 300. We have many years of experience helping small to mid-sized manufacturing and distribution companies reduce inefficiencies and grow revenue. Contact us to put our industry experience to work for you.