Inventory management is a means to know the visibility of stock. It is a practice of preparing beforehand the operations of buying, storing, and selling of stock to ensure the right amount is available without excess, allowing ease in cash flow. In a nutshell, when inventory is managed accurately, it saves a lot of capital for the company.
Purpose of Inventory Management
Its main function is to make sure that your firm possesses the right amount of stock on hand to meet customer demand without having to overstock or understock. This is not an easy task, as demands fluctuate.
Benefits of Inventory Management with NetSuite
Such practices greatly aid in saving money and keeping an accurate stock amount. However, there are more benefits when you add the NetSuite ERP system with this. Here’s how it can your business life easier:
- Learn more about inventory levels across the business. ERP systems provide an end-to-end view of orders throughout the departments, from sales to accounting. This helps businesses to track their stock levels more accurately and to identify potential shortages or overstocks.
- Automation of manual operations. Functions like barcode and RFID scanning easily speeds up stock-taking, receiving, and fulfillment processes. Therefore, businesses save time and money. Other than that, there are lesser risks of errors as well.
- Greater visibility of real-time data. A state-of-the-art inventory management software helps businesses access real-time information on all SKUs. It helps them in better decision-making and improves customer service.
- Enhanced forecasting. Software like NetSuite handles data collection to provide firms with insights into trends to help improve their stock forecasting and reduce the risk of stockouts.
- Data-driven decisions. NetSuite can help in making data-driven stock decisions which in turn saves money by reducing inventory and carrying costs.
- Help in uninterrupted production operations. Since NetSuite helps in forecasting both demand and lead time, it ensures that production never experiences any sort of shortage.
- Synchronize multiple inventory locations. You can opt to see an overview of stock levels easily. No matter where they are, in your warehouses, distribution centers, or retail stores and suppliers.
- Optimize inventory. A strong inventory management software integrated system helps businesses maintain the right levels of stock quantities and carrying costs.
- Scale inventory as your business grows. It is impossible to track 1,000 SKUs without making an error. That is where automated software comes into play. It can easily manage that task for you.
- Compliance with GAAP (Generally Accepted Accounting Principles). Accurately valuing your stock is critical for financial transparency. Inventory management software provides the accuracy that GAAP requires and helps avoid fines and penalties.