Does your distribution company need a better inventory management solution? Here are 5 signs that you are ready for a makeover:
Are you always running out of inventory?
If you find yourself running low or running out of the products you sell, congratulations on doing a thriving business. But how long can your business thrive if you can’t keep up with your customers’ demands. If you don’t have what they need when they need it, your competitors are just a click away.
If your salespeople are promising items that your warehouse is saying they can’t deliver (or worse yet, can’t find), you definitely need a better inventory management system.
The right solution can show you, your sales team and your warehouse staff what you have on hand, how much of it and where it is located. This will be especially valuable if you have multiple warehouses.
Are there too many discrepancies about quantity?
At the end of the year, your tax accountant is going to want you to count your physical inventory. If the numbers coming back from your warehouse consistently need to be adjusted to match up with what you thought you had on hand, something is wrong with your tracking system.
The right inventory management solution will allow you to identify the items that require constant quantity adjustments (you especially care about negative adjustments) and figure out where the discrepancy comes from. Any items with constant quantity discrepancy could be targets for shrinkage, including theft, and should definitely be tracked more carefully.
Are you in the dark about quantities or values?
The right inventory management solution will allow you to generate reports that enable you to make informed decisions regarding your supply chain strategy. If you are constantly questioning quantities or values, you do not have the reports you need. You should be able to quickly and easily see reports to show what you have now, what you used to have, what you did with it. The better you set up the reports, the better the information will be.
With the right inventory management solution, you will be able to make strategic decisions that impact your supply chain.
Is there too much manual counting going on?
Manually updating inventory can be painful and fraught with error. The right inventory management solution will keep your manual inventory counts to a minimum. You should be able to see that a count was just done a month ago and there were no variances. So next time maybe you can go 1 or 2 months. Think of the time and manpower hours that will save.
Are you losing money by overstocking?
Running out of inventory is troublesome, but having inventory overstock is also an indication that things aren’t running smoothly. Having a surplus often means that you will end up selling at a loss just to get rid of the excess. Surplus stock may also take up room needed for other items that may be selling better. The right inventory management solution will allow those in purchasing to know when and when not to reorder, and how much of a product will reasonably be sold before it is time to order again. The right software will allow you compare how many units you have in stock with your historical sales and projected sales.
Microsoft Dynamics GP is the right software to fit each of these needs, and more.
Find out more ways that Microsoft Dynamics GP for Distribution can help your business. Download our white paper: “
If you are a small or mid-sized distribution company looking for an inventory management solution,
By CAL Business Solutions, Connecticut Microsoft Dynamics GP Partner, www.calszone.com