Inventory optimization is a high-wire balancing act for manufacturers and distributors. From raw materials to finished goods, how do you decide what and how much to stock, when, and in what form?
On one side, you need to satisfy customers who expect product delivery at warp speed. You may also want to hedge against cost volatility by stocking higher quantities. On the other side, keeping products and materials on the shelf can be really expensive. In manufacturing, as much as 50% of your capital can be tied up in inventory.
Discover how SYSPRO’s inventory optimization solutions empower your team to solve these challenges. Forecast and control over what’s in transit, at the warehouse and on the shop floor – so you can identify issues before they occur. The payoff can be significant:
- Improve stock availability and avoid out of stocks
- Increase inventory turnover and shrink obsolete stock
- Reduce carrying costs to boost profits and free up capital
If you’re serious about finding ways to streamline your inventory operations, here are some keys to success.
- Read the Managing Inventory With SYSPRO brochure.
- Get tips and tricks from our blog, or read the Do You Know How Much Your Inventory is Costing You? post.
4 ways to smarter inventory management with SYSPRO ERP
Forecast Demand More Accurately
In your business, you need to purchase raw materials wisely, taking into account issues like seasonality and favorable purchasing terms. SYSPRO ERP Software provides advanced forecasting, demand planning, and modeling with “what-if” capabilities that show the trade-offs related to inventory and fulfillment time.
In addition, SYSPRO enables you to conduct an analysis of stock codes (SKUs) by multiple algorithms at a granular level, so you can see each item’s historical demand behavior and impact on profits. Then you can create segments and balance ordering based on that behavior – basic, seasonal or safety stock.
No history? SYSPRO’s proxy functionality enables you to forecast demand for new products based on the sales history of similar superseded products – particularly useful in industries where product life cycles are short.
Improve Sales and Operations Planning
With SYSPRO’s integrated scheduling, inventory forecasting and Materials Requirements Planning (MRP) solutions, you can order just what you need in response to demand, reducing both costs and waste. This functionality is complemented by features such as “available-to-promise” and various time fence indicators, which give sales and production staff a reliable view of what they can promise to customers and when.
In addition, SYSPRO ERP Software features advanced business intelligence reporting so you can analyze KPIs such as lost sales, days of stock cover and days out of stock. When you identify slow-moving, excess, active and static stocks, your sales team can then create targeted promotions, and your operations team can accurately handle obsolescence provisioning.
Drive Efficiency with Budgets and Inventory Targets
With SYSPRO Inventory Optimization connected to our MRP solution, your team can use demand forecasting to calculate budgets and targets for purchasing raw materials. You can develop ordering policies by stock code at the warehouse level, and then calculate time-phased minimum and maximum levels dynamically based on demand forecasts. With set targets, you can further improve efficiency by automating processes like standard reorders.
Troubleshoot Daily Inventory Gaps – Fast
When you have real-time access to inventory information, you can pinpoint and address issues quickly before an out-of-stock situation occurs. SYSPRO ERP Software can show you where and why inventory is not in balance (excess or shortage), with tracking signals to indicate when forecast accuracy might be in doubt. You can also leverage alerts to automatically notify you of supplier issues, so you can speed up resolution.
Inventory Optimization Software
As your business grows in complexity and you support multiple sales channels or global locations, accurate forecasting and planning become even more challenging – and mission critical to driving profits. If you’re using manual processes and guessing what and how much inventory to carry, there’s a better way. Find out how inventory optimization solutions from SYSPRO ERP Software can help.
Customer Success Story
“SYSPRO has been very positive for us. It gave us a manufacturing system we never had before, which has allowed us to control costs better and manage our inventories better. Now, we only buy what we need to buy and make what we need to make.”
–Purchasing Manager, Gorant Chocolatier