Inventory in your warehouse or factory is an asset and responsibility. In both cases, if just sitting there, it's worse than worthless – it is a negative value. Whether it's a Pena in a stationary cabinet or multi-million dollar machine tools in the pier warehouse, inventory must be stored and cleaned as fast as possible and efficiently.
Optimization of inventory is about managing what is in the warehouse and how the content flows in and out of the warehouse. This is an area where most ERP software implementations usually get the highest and fastest investment returns. You can get an efficient integrated inventory management system at DEAR Systems via online sources.
Therefore it is surprising that many companies that have implemented ERP have not added a special inventory optimization module, because it offers great potential for companies to maximize their IT investment value for relatively small additional costs.
Deciding the correct level of inventory is the main problem, and answers will vary from industry to industry, and from organizations to organizations. The danger lies in overstocking or fanning. Overstocking produces a variety of negative impacts:
Image Source: Google
- The organization becomes not flexible and is difficult to manage
- There is an increase in the number of funds that are bound in non-productive items
- As a result, there is an increase in the number and value of writing
- More goods become obsolete or expiration
- Storage needs to increase exponentially because a little stock is removed then it is brought in
Companies focused on purchasing and manufacturing are more efficient, because you can always sell what you produce or purchase. Today is the opposite. Production is greater than demand and customers have become increasingly demanding.
To make it more complex, various industries have different challenges that need to be addressed, which is why the agile solution that meets business-specific needs is needed.