Effectively managing inventory is one of the most significant challenges for manufacturing companies. Inventory management is a business process that consists of procurement, storage, and distribution tasks, and in some cases, can involve maintenance tasks as well.
The right manufacturing ERP (enterprise resource planning) systems address these inventory management tasks and afford businesses detailed tracking and reporting tools, to reduce operational costs associated with the storage and movement of a manufacturer’s inventory.
Surplus inventory can be a major problem because manufacturers need their products to move before excess inventory leads to inventory stagnation. Surplus inventory occurs due to poorly timed or managed re-ordering, seasonal fluctuations in sales of specific items, or changes in the consumer market.
Epicor ERP helps manufacturers tackle these challenges by granting full visibility into how stock moves through the business and the ability to automate re-ordering alerts. As a result, manufacturers get to eliminate redundant or early re-ordering that leads to surplus inventory.
With a detailed look inside the flow of materials through the operation, managers can determine the sweet spot for the amount of stock needed on hand to adjust ordering quantities appropriately.
Just as damaging as inventory surpluses, having too little on hand to fulfill sales can easily lead to lost business. Epicor allows manufacturers to set inventory thresholds to receive customizable notifications.
For instance, Advanced Demand Forecasting takes the guesswork out of ordering the right amount of inventory. With this tool, manufacturers can set the number of units at which to receive alerts that it is time to re-order. Manufacturing ERP systems with more robust user features like Epicor can even automate re-ordering, effectively eliminating user error from this part of the manufacturing ecosystem.
Stagnant or Valueless Inventory
Inventory stuck in the warehouse is the bane of manufacturers and the drawbacks are twofold. Aside from unused or unsold inventory a financial loss, it also takes up valuable inventory space for other products that can move more efficiently.
For instance, inventory that expires (such as food products) can be set up for alerts in advance and/or upon its expiration. How inventory becomes valueless depends largely upon the kind of inventory in question, and as such, how an ERP system will help address the issue varies from business to business.
The Flow of Inventory
The way inventory moves through a manufacturing business is critical for their inventory management processes. Epicor ERP allows manufacturers to set and monitor key steps in how their inventory turns over, granting invaluable business insights necessary to make the best decisions for their operation.
Epicor’s Inventory Management Software provides flexibility to manage the flow of inventory by minimizing inventory surpluses, losses, and stagnation while improving cash flow and customer service.
Epicor for Your Manufacturing Company
Epicor ERP is among the most advanced, versatile and scalable ERP solutions for manufacturers and offers full-service modules from accounting and customer relationship management to inventory management, pre-production materials planning and manufacturing execution (MES).
With a reputation for flexibility and understanding the unique needs of today’s manufacturers in an increasingly competitive marketplace, Epicor ERP can dramatically improve your performance and profitability while easing complexity so you can focus on growth.
Epicor ERP is delivered either on-premise, hosted or as a cloud-based software as a service (SaaS) offering. The application is architected using a true service-oriented architecture (SOA) and is modular, meaning you purchase only the modules you need.
Contact us to learn more about our passion for solving problems and how it drives us to deliver innovative solutions for everyone we work with!
It’s not easy to be a manufacturer in 2020. Unquestionably, the speed at which business is conducted and executed has accelerated since the turn of the century, and it seems like that trend will only continue. Enterprises like Amazon have acclimated customers to a speed of service that has leaked into almost every other sector
Inventory management, as the name would suggest, is the fundamental process of controlling the flow and storage of business inventory for optimal operational efficiency. Effective inventory management is essential for companies across many industries but is particularly vital for those operating in the distribution industry. While the broad concept of inventory management is relatively intuitive,