With the economy on an upswing now is the time to invest in an Integrated Inventory Control system with your ERP for the first time. If you’re shopping around the benefits will pay off huge in 6-18 months from your purchase.
Many companies are considering getting returns with this investment and here are reasons to do it. All executives making these decisions want to know when they can expect to see a return on investment (ROI) for their Inventory Control technology selection.
Here are three areas where executives can find additional ROI opportunities.
1. Managing inventory. Distributors who lack inventory and warehouse accuracy often carry more safety stock than needed. Using a WMS allows them to gain inventory and warehouse accuracy so they can reduce safety stock levels. It also provides visibility to real-time inventory, which can potentially eliminate lost product and reduce overstocks.
Warehouses with high levels of inventory accuracy cut costs by not purchasing product until it is needed; earning price breaks by ordering in larger quantities; and consolidating orders to vendors, which limits inbound shipments.
2. Saving space. Using a WMS allows distributors to define storage areas and bin locations in the warehouse. The system then manages product storage using the rules established for the facility. A better organized warehouse yields space savings. With real-time scanning software that provides you with allocation allows your employee to receive and put away in lightning speed with complete accuracy.
3. Getting the most from labor. A big part of any ROI, labor savings come in several forms. Using Inventory software can deliver benefits including gaining productivity, reducing and eliminating costly physical inventories, and absorbing business growth and increased volume in the warehouse with existing resources. It also makes training new employees easier. You will see employee retention with your scanner to receive and scan your product in and out.