Unify Your Business’ Financials And Inventory

Inventory management is a big part of most distributors business models and it’s often critical that this is handled properly to ensure you know how much stock you have and where it is located. For most businesses, this means adopting an inventory management system to help with the process however this isn’t always enough.

When picking your inventory management software, you need to select a system that you know will integrate with your back office processes.

Unless you opt for one that’s integrated with your back-office systems, an inventory management system is not enough to effectively optimise your inventory or ensure the inventory asset value on your financial reports, matches what is physically in stock without tedious manual intervention and reconciliation which can take time and be costly.

 

Therefore, when picking your inventory management software, you need to select a system that you know will integrate with your back office processes. By doing this, you’re giving your business a competitive edge with abilities to plan effectively, execute predictably with customers and minimise costs and errors associated with manual processes.

 

So why is it important that your inventory software integrates seamlessly with your back office? As everyone knows, it is vital you keep accurate and up to date records of your business’ finances. This is reason enough to ensure that everything is under one roof with the same system, however, there are three key benefits that can make a big impact on your bottom line.

 

Effective Inventory Optimisation

To guarantee customer satisfaction, it’s imperative that you have the right amount of inventory available. People want the latest stock, and you don’t want your working capital tied up in inventory and wasted money on labour, storage and the initial product – meaning the availability for products your customers want is limited – so it can be tricky to find the right balance. Planning the right level and amount of inventory requires your sales order, purchase order and planning systems to have real-time visibility of your inventory.

 

Supply Chain Inventory

These day’s there’s a large number of companies using supply chain partners to help manage inventory as well as shipments. For this to be effective, the inventory system you use should be integrated with supplier and third-party logistics, as well as your back office systems. This way, your suppliers can see your inventory levels for themselves and ensure it is available in their warehouse when you and your customers need it.

 

Accurate and up to the Minute Finances

As you know, making sure reports and tax returns are accurate is crucial, and a legal requirement. You need to make sure that your inventory value is correct in your records and that the value in the books matches your physical stock levels. By integrating your inventory system transactions with your back office accounts, not only are you guaranteeing yourself this level of accuracy, but you save time and money by removing manual intervention.

 

So, What’s the Solution?

The simplest way to achieve the level of integration that your distribution system needs is to implement an ERP system with a powerful inventory management system. One widely recommended system with such functionality is NetSuite, the No.1 cloud based business management solution. NetSuite has a Supply Chain and Inventory Management Module which offers a complete set of inventory management, manufacturing and purchasing capabilities that helps move inventory to the right place, at the right time, at the right cost. With NetSuite, you’ll be able to better manage inventory levels and costs and better meet fulfilment expectations, improving customer service.