Efficient inventory management implies meeting the customers’ demand, so that they achieve the desired products in the shortest time, and minimizing the costs related to inventory management, a basic element for maintaining a company’s profitability.
Think about the implications irregularities between stock and customer demand has on your business. On the one hand, if you choose to purchase large quantities of merchandise, you get to waste money on products that will stay for a long time in the warehouse. On the other hand, if you have too little inventory you might not be able to meet all future customer orders.
How do you know that you need specialized tools for optimizing your inventory?
Maybe you’ve never been in one of the situations above, and you do not have comparison basis, so you can’t realize the size of the costs that inventory management implies and how much you could reduce them if you have an effective planning tool. However, there are certain signs that should suggest you that a change is needed, and they can be countered by means of specialized systems for inventory planning and optimization:
- The inventory demand varies in a certain time interval
- The number of new SKU’s is constantly growing
- The inventory turn is low
- The goods expire on stock
- You don’t have an efficient forecasting tool
- Your employees are losing too much time with manual setting of maximum or minimum values of safety stock
Why choose a stock optimization software?
The risk of getting in one of the unpleasant situations described above can be significantly reduced by using an inventory planning and optimization solution. In addition, there are many other reasons why such a system is right for your business, especially in the current economic situation:
- First of all, the costs generated by the transport, management and handling of goods are extremely high and the system that we provide is able to control them so that your business continues being competitive
- Secondly, your customers will want you to deliver the required products within the shortest time and that is why we offer you a solution whereby you can meet their demands without having to store excess inventory
- Finally, there are too many variables that could influence the inventory and customers demand, which is why we offer you a system that is set to take them all into account automatically
The operating mode of the inventory optimization system offered by Senior Software
What are the main functions that it offers?
What the system actually does is to reduce the inventory investment, while maintaining or even increasing customer satisfaction, by improving the fill rates of customer orders. Moreover:
- It plans and optimizes the inventory of all products in all locations, managing to eliminate the risk of overstock
- It calculates the needed inventory for safely covering the customer requests and it suggests the optimal replenishment solutions
- It’s an extremely useful tool for employees who handle inventory management, because it reduces manual work and increases productivity
A stock optimization software is intended for forecasting, planning and calculating the optimal quantity of goods needed for successfully covering sale orders. It is distinguished by its rapid return of investment, providing benefits for the company, the employees and customers.
More productive employees
In general, the employees responsible with replenishment need to check on an everyday basis the stock of thousands of products, set the minimum and maximum quantities or safety stocks for each of them and establish the sources from where the goods needed to meet customers demand will be procured. These activities take a lot of time and effort, and given that they are done manually, they can be extremely time consuming and unproductive. The inventory planning and optimization system is useful because:
- Offers easy ways to check the inventory for a large number of products, by grouping them according to certain common characteristics
- Allows the programming of inspections on each group and setting up alerts that notify you when you need to check a specific group
- Offers you replenishment suggestions automatically: either transfer from another location, or purchase from the vendor, which the user can accept or ignore
Succesiune obisnuita a sarcinilor de planificare in lucrul cu SeniorINVENTORY
More satisfied customers
Meeting customer demand may prove to be a very difficult task, because it requires the ability to provide them with exactly the products that they want, when they want them. In the absence of an efficient forecasting system, you should always have large amounts of merchandise on stock, so you could successfully cover their orders. By implementing an inventory optimization solution, you manage to have more satisfied customers without high costs:
- By analyzing the customer’s previous orders, future demand is forecasted, and from this, the system calculates every day the quantity of inventory required to cover it
- Because it’s integrated with the ERP system, all transfer or acquisition orders are submitted automatically to it in order to be processed in the shortest time, which results in faster delivery
Positive cash-flow for the company
Goods represents a capital restraint. As long as they stay in storage, they do nothing but generate higher costs and often losing their value. An inventory optimization system:
- Allows you to store the optimal quantity of merchandise, which means that you will be able to prevent both overstock situations, when you have to bear large storage costs, and the understock, which may lead to the decrease of sales
- Takes into account all the variables that could influence the size of the request, such as seasonality or trends, so that the stocks to be permanently correlated to the sales
- Analyzes excess and obsolete inventory and offers intuitive reports to help you make the best decisions for your business