What are the benefits, advantages and objective of an ERP Inventory system?( Part1)

ERP CHANGE MANAGEMENT

If you are new with this web log we request you to read preface first.

Till now we have discussed about the messages which are required to build the awareness of the need of change to our users, and better to in these series our inventory users.

Now our users are aware of the need of ERP change, thus we can start second phase of change management activity which is to get their desires to participate in the change.


Regarding to the objective of this web log, we have prepared the messages which must be sent to users.

What are the benefits, advantages and objective of an ERP Inventory system?

Followings are the answers(messages) to the above question:

· Reduction of the total cost of organization through reducing unnecessary inventory.

· Maintain safety stock for each item insures the availability of items in critical situation.

· Considering inspection of part of receiving process for received items.

· Keep unchecked received goods in receiving section separately from usable items.

· Adding qualified goods to the usable inventory after inspection.

· Avoid keeping unqualified goods in the warehouse but rejecting them.

· Lot genealogy is available for tracking from product lot to raw material lots.

· Lot based quality is there.

· Total item specifications can be seen in system.

· We can search items on each specification

· Place and location of item in all inventories are visible in system.

· More than 90 percent of paper operations for purchase requisition, purchase order and item move order from inventory can be omitted.

· We can check on hand quantity of one specific item over all inventories in enterprise.

· We can attach any technical documents and drawings to purchase requisition and everybody in approval hierarchy can see them.

· We can check all receipt items, which are not in conformance with purchase order and control balance between orders and delivered items.

· Most of human communications and physical presents for approving items can be ignored.

· Inventory optimization recovers profit from inventory by making it easier to eliminate excess stock, reduce lost sales and minimize the cost and time in doing so.

· Inventory management tracks the ins and outs of a product/item down to its color and size level, using capabilities such as purchase order process, receipt process, allocation process, distribution process, transfer process, style consolidation process, physical count process, and inventory freeze process

· Do you have effective, fact-based decision-support for identifying and prioritizing actions to stop unnecessary material inflow to inventory by dollar impact? ERP can help you

· Does your decision-support system pinpoint undesirable inventory dollar movement by item? ERP can help you

· Do you have decision-support capability that continuously assesses specific items inventory reduction potential? ERP can help you

· Does your decision-support system help you establish a baseline, set clear targets and provide on-going performance measurement for every item in your inventory? ERP can help you

· Determine the minimum required inventory based on Reorder Point Planning, Min Max Planning etc.

· Elimination of duplicate Inventory items

· Reduction of slow moving Inventory

· Inventory accuracy on physical and Book information

· Utilization of available inventory items

· Possibility for automated item coding by system.