Key stock management challenges for companies similar to yours
So, you have bought Microsoft Dynamics NAV or other ERP system? Congratulations! You probably now have the integrated order, inventory, and distribution processes in one system and gained some insight into inventory processes. By utilizing this ERP system functionality, your people can now reduce manual data entry and deliver your goods to the market faster. But… Have you really reduced your stock levels or purchasing costs? Or significantly improved customer satisfaction? After some time, you notice that:
- trying to achieve a high service level usually leads to overstocking.
- for new items, there is insufficient historical data on which to base a forecast.
- even the most sophisticated forecasting tools deliver unpredicted errors and require manual revision at each line; therefore you are still consuming the valuable time of highly competent inventory management staff.
- automation of inventory management seems impossible without costly errors, or time-consuming manual revision of forecasts.
- it is hard to predict sales during sales campaigns, with the result that you cannot avoid overstocking or stock-out of campaign items.
Besides the above-mentioned issues, you should include the fact that inventory problems tend to grow proportionally to the growing assortment and/or number of the warehouses/stores; this might limit company growth significantly.
Would you like to improve the situation in your warehouses now? Read on to find out how.