As a distributor, inventory is your lifeblood. To maximize your profits, you need to have full insight into the flow and balance of inventory across locations. Unfortunately, you probably have to depend on static reports with outdated information. You don’t really know what is in the warehouse at any given time.
Common challenges of distributors
However, you’re not alone. Most distributors have very similar inventory-related control problems, including:
- Knowing what products are â€œout thereâ€ and how many there are
- Knowing exactly where each piece of each product is located
- Ensuring that all inventory remains in salable or usable condition
- Storing products to minimize the cost of filling customer orders
This lack of control leads to supply chain issues, including:
- Overstock of some products. This excess inventory and dead stock leads to decreased turnover and profitability.
- Stockouts of other products. This results in backorders, lost sales, and dissatisfied customers.
- Stock variation. The on-hand quantity in your computer system does not agree with what is actually on the shelf in the warehouse.
- Missing materials. You know the material is â€œout there somewhereâ€ but can’t find it.
Achieve effective inventory control for better stock management
A fully integrated ERP solution, like Microsoft Dynamics ERP, provides insight across multiple facilities, geographies, and vendors. Flexible reporting tools allow you to look at inventory from different levels and perspectives. Consolidate inventory data from multiple locations to analyze one product or focus on the shipping efficiency of one warehouse.
With real-time visibility into inventory, sales, purchasing, and financial information across multiple locations, you’ll be able to identify trouble spots and recognize opportunities. Accurate real-time inventory data will help you optimize layout, picking methods, and stock movement. Improved accuracy in demand forecasts means you can respond to changing buyer habits quickly.
Effective inventory management allows a distributor to meet or exceed customers’ expectations of product availability, stocking the optimal amount of each item that will maximize the company’s net profit or minimize its total inventory investment. Call us today to find out how we can help you improve your inventory management.