How Acumatica Can Stop Inventory Shortages
Posted on: April 27, 2016 | By: Craig Thompson | Acumatica
Inventory control and management can be a difficult task to grasp, especially when information is scattered across different platforms. In order to improve inventory control, proactive planning is essential for any business to run effectively. Without actively being aware of the inventory flowing in and out of your warehouse, supply shortages are inevitable and can be detrimental to your businesses operations. Ideally, businesses should have new supplies arrive just before the other runs out, but without a proper plan in place it can be difficult to anticipate these changes. Oder point, a familiar way of anticipating inventory replenish orders, works based off of average or assumed usage, but what happens when you find yourself in a supply shortage time and time again?
Using a proactive approach like Material Requirements Planning (MRP), manufacturers can calculate how much of each material and component items they need and when exactly they will need them by. This process completes a master production schedule to help keep you on track. Automated ERP software systems like Acumatica can help guide this process and make organizing your deliveries much simpler. Acumatica's ERP software is both simple and easy to use and can work wonders in any organization.
For distributors, the Distribution Requirement Planning (DRP) system may be your best fit. Both techniques (MRP and DRP) work backwards through your records to line up replenishment orders to minimize inventory and prevent shortages. Quantities and start dates/due dates are analyzed to give you the most accurate representation of when you should replenish your supplies and continue bringing in revenue. These techniques rely heavily on accurate data points and good forecasts, so using a software like Acumatica to carry out these plans is crucial. Acumatica gives users comprehensive and real-time look into the company and its user friendly customizable mobile platform allows for quick updates on the go.
Inventory shortages halt business and make it difficult to bring in revenue and increase your ROI. Simple and familiar inventory approaches like order point can be effective, however utilizing different inventory management methods like MRP and DRP may be more beneficial. The simpler the inventory management system, the less likely they are to deliver the combination of low inventory and high availability you need to develop a proactive management plan in the plant, warehouse and through the entire supply chain.
That being said, while some replenishment planning approaches are more effective than others, none are perfect. In order to run the most effectively, it's important to have an ERP software like Acumatica to back up your planning. It also doesn't help to keep a little bit of safety stock on hand to ensure you'll never run out. Acumatica is committed to helping businesses run as their most effective self. If you are looking to improve your inventory control, or are simply in the market for an on-premise or cloud ERP software, contact us here at Logan Consulting. Your Chicago based ERP partners can help you setup a demo or a consultation to find out if Acumatica ERP is the best fit for your ERP software needs.