Distributors understand the business objectives behind an Advanced Inventory Management (AIM) system: you can grow your business successfully by knowing exactly what, how many, and when to ship your products. Inventory management makes it possible for distributors to accelerate the pace of profitability. To achieve these business objectives, try the following 5 tips for maximizing your inventory management – and call NSA for help optimizing your ERP solution to implement your own successful inventory management system:
1. Provide better customer service. When your customer service representatives and sales team are armed with an updated inventory list, order points, and replenishment schedule, they can provide outstanding customer service.
2. Track the product lifecycle. Use your ERP system to analyze and report results, track sales, transfers, and lost sales, and flag exceptions.
3. Get the timing right. Your inventory should arrive just in time- you don’t want it to sit on your warehouse shelves or end up with products you don’t need.
4. Track and monitor progress against targets. Monitor how much your carrying costs are in relation to freight, service, and price. Know where you stand in terms of supply volume and demand.
5. Use business intelligence to make decisions. Your ERP solution should offer a paperless, real-time control center that highlights any inventory that requires your immediate attention, allow you to sort by parameters you set, and drill down to order points, individual items, and line points.
The competition is tough. That means it’s more important than ever to offer your customers something your competitors are not- effective inventory management. This will allow you to offer better customer service and deliver orders correctly and on time, leading to happy customers and customer loyalty.
Let’s have a conversation to see what challenges you currently face and how NSA can help develop your own unique Advanced Inventory Management system.