For many manufacturers, inventory management remains a manual, labour-intensive task. This can be avoided by implementing the right Enterprise Resource Planning (ERP) software. The key features and benefits of automated inventory management are laid out here.
An automated inventory management system is a software-based solution that aims to automate workflows and minimise the effort needed to manage a company’s inventory.
The key features of a robust automated inventory system are:
- Automated inventory tracking. Using lot and serial numbers to record stock movements in real time, giving users an accurate view of what you have, where it is, and which materials were used in which products.
- Assisted inventory planning. Using current inventory, order and production data to help businesses plan purchasing, calculate material needs and prepare for future demand.
- Instant inventory valuation. Continuously tracking inventory costs so you can always see stock value, cash tied up in inventory, and its impact on COGS.
- Reporting and analytics. Providing reports on stock levels, movement history, aging, expiry, and other metrics to support better inventory decisions.
- Inventory notifications. Alerts users to important events such as low stock, quality checks, order updates, and task assignments.
- Barcode-supported data entry. Speeding up and improving data accuracy by capturing inventory transactions instantly while drastically reducing manual entry work.
- Multi-channel syncing. Connecting with e-commerce and CRM platforms so that inventory is continuously updated automatically across all channels.
- Multi-site inventory management. Allowing you to manage stock across multiple warehouse locations within one system, making operations easier to scale.
The benefits
Automated inventory management brings a multitude of benefits to businesses, regardless of their size or industry. The most compelling is cost reduction. As automated systems improve inventory control and eliminate manual processes, it results in lower labour expenses, reduced carrying costs and less cash tied up in inventory. In addition, automation mitigates the risk of human error by ensuring that everyone has the same up-to-date data to work with, reducing costly mistakes.
A good automated inventory system will provide a clear view of stock levels and performance, enabling businesses to make informed decisions about purchasing, sales and replenishment. Further to this, through the use of historical data to achieve accurate demand forecasts, automation can optimise stock levels for more effective replenishment
Automation provides a solid foundation for quality control, compliance and recalls by offering full traceability, which makes it easier to track inventory movements throughout the supply chain.
Optimised inventory and accessible data ensure that businesses can quickly provide accurate quotes and get products out the door faster, contributing to faster fulfilment. And as automated management solutions can adapt to handle an increased number of SKUs and other inventory and production data, it supports scalability.
Choosing an automated inventory management software
Instead of an inventory-only solution, manufacturers should choose a manufacturing-centric system, designed to address the complex needs of manufacturing operations. Manufacturing ERP software like MRPeasy integrates inventory, production, sales, procurement and finances to provide manufacturers with a centralised platform to manage their whole operation.
For more information and a free trial, please visit the MRPeasy’s website or visit them at Stand B50 on June 3-4 during Smart Manufacturing Week at the Birmingham NEC.
