Inventory management is considered a thorn in the flesh for any business, which needs to store goods for any period. Try to enquire about the most challenging part from any company! 9 out 10 times it will be Inventory Management. Why? Because, it can affect many parts of a business, such as warehouse management, on-shelf availability to loss prevention, operational efficiency, customer satisfaction, and profit margins of the company. It becomes more complicated and complex as more products and locations are added.
It is very important for you to understand that when you grow your business, how you should make sure that you are maintaining the right volume of stock? If you hold too much stock in warehouse, you may end up struggling with working capital that can affect the growth. And, if you do not stock units as per the demand, the customers will get disappointed and you might lose them.
Your business might face the following obstacles
- Limited visibility to keep a balance between the demand and the supply
If your business data is residing in a lot of books (accounting books) and different systems, then it will be difficult to reconcile data to a central location. With scattered data, it will be hard for the business management to take strategic decisions because they will have limited visibility about all the relevant information, such as SKUs, expenditure incurred, cash flow, and revenue coming from multiple locations.
- Too many definitions for the same data
There are chances when there is inconsistency amongst the terms being used across the company. For example, purchase orders and product categories.
It is very important to standardize the naming conventions of the products you are dealing in. The standardization process (like the ones available in SAP Business One) will help you in building an architecture that can work across all departments as well as locations in a smooth fashion.
- Complexity to access data remotely
When you grow your business across the geography, by default the data will grow enormously. If you want to be more productive, then you should be able to get access to the data on any device and at any location without any hindrances or roadblocks. This data should be accurate and real time as it may make a difference in key decisions taken by your staff.
- Using multiple systems to manage data causes duplicate entries
When you use multiple systems (like MS Excel, Tally, etc.) to manage your operations, there are higher chances of duplicate data. This might cause conflicts in the information, which further can cause loss of business.
If you have a tool like SAP Business One that can help you overcome all these issues, then you can work tirelessly and hassle free to accomplish your goals.
There are many companies with inventory management needs that are implementing SAP Business One. This tool is helping them to bring transparency of the overall inventory, expenses incurred and revenue generated. This tool also helps identify areas of business that can help in increasing revenues. So, what are you waiting for? Go and select the right tool for your business and help it flourish!