Integrating inventory management in ERP is essential because the specific roles of inventory management concerning stocks can be useful for making a company-wise resource plan. There are at least five reasons why integrating an inventory management system into your company’s enterprise resource planning can be good for your business.
Both inventory management and ERP play specific roles that—when combined—can give a significant benefit to your company. Inventory management simplifies and increases the efficiency of the movements and storage of stocks. ERP, on the other hand, creates a centralized system where all corporate roles can be synchronized and often automated. Combining the efficiency and simplification that inventory management offers with the centralization that ERP offers increases the productivity of company-wide business roles.
Also Read: ERP vs Inventory Management
Inventory management software allows the transparent monitoring of stock storage and movements as well as supply chains; however, this happens in a relevant department only. The fact is that other departments also need a clear view of these affairs. By integrating inventory management in the big ERP system, transparency can be achieved across all departments.
By achieving increased efficiency and productivity through the integration of inventory management in ERP, unnecessary expenses can be reduced and even eliminated. As mentioned above, the inventory management and ERP combo give a clear advantage to the company in terms of efficiency and productivity. Every businessperson understands that efficiency always leads to cost-effectiveness by cutting down the workload.
Improved Data Accuracy
Harnessing the power of ERP for inventory management also allows the collection and reporting of inventory management data more accurately. E R P communicates and synchronizes inventory management data with other data within the company, making the data more accurate and meaningful for assisting in the business-wide decision-making procedure.
Faster Business Growth
Incorporating inventory management functions in the company’s enterprise resource planning streamlines and automates the management of stocks within the entire business environment. When all departments work in a synchronized environment, the company as a whole can move forward more efficiently and quickly. This ultimately guarantees faster business growth and better operations in every organ that the company has.
There are a lot of good things that can be achieved by integrating an inventory management system within a company’s enterprise resource planning. In a nutshell, both systems offer increased efficiency, transparency, and productivity, all of which is what every business requires to be able to move forward and to produce the best products and services. Companies thus need to look more into the integration of inventory management in ERP to survive and thrive. (pc)
Also Read: NetSuite ERP Inventory Management