04 Jan How to improve Inventory Turnover Ratio with erp
The quicker you convert the inventory in your warehouse into accessible cash, the better. Optimizing inventory enables you to improve your inventory turnover without compromising stock availability. Insight into how many times you buy and replenish inventory over a period is vital. In this guide, we discuss how to improve your inventory turnover ratio with ERP.
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How ERP helps you manage varying demand patterns
Manually keeping track of the fluctuating demand patterns of a single product is doable. However, when you have a wide range of products with varying demand patterns, this becomes more complex. Inventory control software empowers you with real-time insight and accurate tracking of multiple products throughout their respective life cycles. It gives you the ability to strategize on how you can reduce the stock of items that have a declining demand.
You can also read more about how ERP improves demand planning and forecasting.
The Power of integrated inventory management systems, Warehouse Management System and ERP
An integrated WMS and ERP with inventory tracking capabilities enable you to consistently and accurately track your inventory turnover ratio. You can monitor inventory turnover ratios at a granular level (stock keeping unit SKUs), giving you insight into the products that are not providing the desired return on investment.
Fact is, knowing which products sell the best and how your company manages its overall costs is vital. A low inventory turnover ratio means business isn’t going so great. Understanding why this may be is crucial. Furthermore, a high inventory turnover ratio means cash flow is optimal.
An integrated ERP solution offers accurate forecasts, automation of manual processes, insight into customer and sales data, inventory management, and streamlines supply chain workflows. It holds a great blend of capabilities that empower you to increase your inventory turnover ratio. Reduce the chances of holding slow-selling stock and always ensure you have just the right amount of safety stock.
Inventory purchases no longer have to be a hassle with an inventory control system that performs beyond industry standards. Reduce the cost of goods sold as well as inventory holding costs. With integrated CRM, you can improve you marketing strategy to match demand cycles. Take your stock turnover to new heights while tracking strong sales data in real-time. The higher your inventory turnover ratio the better. With visibility of all your sales, inventory and customer data, you can make data-driven inventory purchases.
Keen to know more about how ERP software can improve the inventory turnover ratio of your unique business case? Give us a call on 011 792 9521 or email email@example.com and we’d be glad to give you an obligation-free needs analysis today.