What Is Distribution Inventory Management Software?
Understanding inventory distribution software requires both parts of the sentence. It is possible to purchase, track, and transport goods with distribution inventory management software. It keeps track of the quantities currently in stock and those that have been allocated, and those that have been requested. It displays the current value and previous values and trends, which can be helpful while making decisions. Using inventory distribution software, businesses can ensure that they have enough supplies on hand to meet client demand without wasting money or stockpiling goods that are out of date or spoiled .
In addition to keeping track of inventory, the system also assists with other critical functions. To fulfill customer orders, it generates picking information. Another purpose is to ensure orders placed with vendors are successfully received. Reorder points, lot number tracking, order advice generation, and automatic order placement are all made possible through the usage of inventory control systems. Inventory systems can be integrated with order management systems to check on available quantities and lead times for items currently out of stock. For accounting purposes, inventory software keeps track of crucial inventory value information.
Benefits of Inventory Management
Inventory management has two primary advantages: it assures that you can fulfill incoming or open orders and increase earnings. In addition, inventory management:
Understanding stock trends allows you to see how much and where you have something in stock to utilize better the stock you have available. If you’re able to fulfill orders from any place, you’ll be able to keep less stock at each location (store, warehouse) and reduce the amount of stock that goes unsold before it’s obsolete.
It boosts the company’s cash flow:
Investing in inventory that sells keeps money flowing through the company when done correctly.
Distribution Inventory Management Systems have certain standard features.
Most modern distribution inventory management systems have the following five aspects in common:
- Operation of the front counter. This feature can handle processing orders, calculating taxes and printing receipts.
- Management of the warehouse and its stock. Distributors can use these tools to keep tabs on inventory levels, handle receiving and shipping, and figure out the best times to place reorders.
- They are controlling the flow of traffic. Users can manage shipments and routes to optimize logistics and cut costs.
- Customer service and relationship management (CRM). CRMs in distribution keep a record of customer information that can be retrieved quickly and reliably. Users can also generate reports to track purchasing patterns.
- Accounting for distribution. Using this function, you can easily keep track of all of your company’s earnings and expenses, as well as its general ledger.
Inventory Management vs. ERP
Accounting, purchasing, regulatory compliance, and supply chain management are just a few of the many functions that may be automated using an ERP system. On the other hand, goods management is an integral aspect of modern ERP systems. It provides real-time visibility into stock levels, inventory in transit, and the status of the current list across the business.
To correctly organize a company’s replenishment orders, inventory management is helpful. erp software company with up-to-date inventory data, allowing them to create effective inventory management strategies. Inventory management is made more accessible with the help of ERP systems.