How do Companies Manage Inventory without ERP?

• Some manufacturers try and manually manage inventory off of spreadsheets which generally lack any sort of real-time reporting.
• Many start off using QuickBooks which can be great for a smaller operation but can be outgrown by an organization that is growing year over year.

What does an ERP system seek to do for a business?

• An ERP system can help centralize a company’s management of day-to-day operations and eliminate the need for multiple systems. Many also offer CRM functionality which can potentially eliminate the need for a separate CRM for their salespeople.
• ERP also can put customized KPIs and dashboards in front of the right people so that a given role within a company isn’t looking at irrelevant information to their responsibilities.
• Also, ERP can increase general visibility and control of operations

How does ERP help in inventory management?

• Manufacturers can utilize bins for inventory location which allows for faster fulfillment of orders.
• Lot tracing allows companies to see where their orders have gone in the event they need to recall or communicate with customers about specific past orders.
• Automation of price/product updates from suppliers for raw goods used in the manufacturing process to ensure more accurate pricing of inventory.

How ERP used to manage inventory can help save money:

• Better tracking of the cost of goods manufactured and sold allows companies to price their products more accurately.
• Automation of redundant tasks allows workers to be more focused on efficiency and output which cuts down on wasted labor hours.

Businesses that can benefit from ERP implementation:

• Biomedical companies
• Food manufacturers
• Subscription-based business with recurring revenue models
• Companies that sell their goods on various e-commerce platforms and need a central system to track everything