Control Leakage/loss in Inventory: Implement an ERP System

Inventory is Money: Lost or untraceable Inventory is a major risk, let’s look at an example

Assume a nominal Rs. 1000 of material is lost per week (Rs. 52000 per year), this Rs. 52,000 comes off of your bottom line. If your net profit before taxes is 4%, it takes Rs. Thirteen Lacs in new sales to make up for this loss (Rs. 13,00,000 x .04 = Rs.52,000)!

Inventory is Time: The time it requires to answer customer’s question about Availability of stock is pure loss of Productivity

Imagine each time your customer inquires about availability of any particular stock and you have to rely on either manual files, spreadsheets or verbal information from your store manager.

10 mins per inquiry multiplied by Two enquires daily multiplied by 250 working days, comes out to be 5000 minutes or 200 hours or One Working Month!

Inventory is Customer Satisfaction tool: Accurate Inventory information makes you to do right promises and avoid false promises!

If you promise material to a customer based on what your computer says is in stock, but the material isn’t actually available in your warehouse, the result is often a disappointed customer. You’ll lose your reputation as a reliable supplier. And not being a reliable supplier is the best way to increase your competitor’s sales

How Systems can help you in managing your inventory?

ØForecast the demand and supply of Inventory

ØManage JIT Inventory and reduce inventory costs

ØPlan for Optimized and Cost effective Procurement by Vendor Analysis

ØGet a 360 degree visibility of your Inventory

ØABC and VED analysis

ØCost Control and Cost Variance analysis

ØFaster Shipments to your customer thus satisfied customer