How to solve common inventory issues

See how an automated solution provides long-term value

The recent supply chain issues that have gripped the UK have highlighted the need for effective inventory management systems and processes to ensure warehouses have sufficient stock levels.

Optimising a warehouse should be high on the list of priorities for any business that carries stock. On the one hand, your purchasing manager will be wary of investing capital used to overstock warehouse shelves. On the other hand, your sales or production director will be asking questions if popular items are out of stock and orders are left unfulfilled. The most successful companies are those that can find the right balance.

The larger your warehouse, or the more diverse your product portfolio, the more complex inventory management becomes. Walking the aisles and counting the stock on the shelf isn’t an efficient or accurate way of doing things. This is where having the right technology in place pays dividends. Utilising best-in-class inventory management software, like SAP Business One & SAP Business ByDesign, enables businesses to maintain optimal levels of essential inventory items. Wasting money on stock that collects dust or desperately chasing suppliers for goods is thankfully a thing of the past.

So how do you do this…

SAP Inventory Management tools

First of all, you’ll want to have a system that you can trust—a single source of reliability that provides real-time insights into accurate inventory levels. You’ll want to analyse your inventory turnover ratios when this is in place. By calculating the number of times that an item is sold over a specific period of time, it’ll give you a good idea of what you’ll need to order in the future to keep operations moving and invoices processed.

Setting up the correct reports is also vital. By managing stock digitally, you’ll be able to track inventory movements and the frequency of these goods. Creating an Obsolete Items Report lets you see what items are stored for long periods or not used within your warehouses. This deadstock is wasted capital taking up rack space that could be used for faster moving items, especially in an inventory-based business. But it also provides an opportunity for your business to offer discounts on slow-moving products or change your sales or production strategies to remove items from your inventory in the future altogether.

You’ve probably already got a fair idea of your most popular items or materials within your warehouse. But you still don’t want to be in a position where you are swamped with materials cramping your warehouse, waiting for the next big order from a customer. By setting up re-order levels for popular items, your inventory management system will alert users when it’s time to create the next purchase order. When using an automated system, line managers receive authorisation requests to approve orders to ensure spending is kept under control.

SAP WMS Software

SEIDOR specialises in implementing and supporting powerful integrated ERP Solutions for the wholesale and distribution industries. Across the globe, we work with all types and sizes of businesses to help them confidently manage stock with our range of digital tools.

Our SAP-powered solutions can capture and process sales orders from popular online eCommerce platforms, store data, and automate critical processes in a powerful back-office solution that seamlessly integrates with popular logistic providers.

SEIDOR provides SMEs with a holistic platform to efficiently manage critical business workflows. Arrange a demo today with one of our solution experts and make inventory issues a thing of the past.