ERP CHANGE MANAGEMENT
If you are new with this web log we request you to read preface first.
What are the benefits, advantages and objective of an ERP Inventory system? (Part 2)We get following benefits from an ERP system:
- Fewer shipping and receiving errors
- Lower total cost per unit shipped
- Reduced inventory out-of-stocks
- Reduced losses from stolen, damaged, or misrouted product
- Reduced order input errors
- Reduced inventory and warehousing costs
- Reduced customer service costs
- Reduced phone communication costs
- Improved delivery accuracy and timeliness
- Increased profitability per order and per customer
- Supply Analysis & Planning, Demand Planning & Forecasting, Inventory Modeling, Replenishment, Distribution and Re-Distribution, Analysis Tools are another capabilities
What are the characteristics of Inventory Optimization systems?
Lead time forecasting – forecasts the most appropriate supplier lead-time for any item or supplier.
Service level analysis – information monitored includes demand history, demand variation, profit margins and lost sales.
Demand forecasting – includes seasonality and life cycles, promotional filters, demand spikes, trend analysis and item profit margins.
Order frequency – correct order frequency analysis can reduce inventory by 10 – 15%
Replenishment – takes into account timing of the order, order point, potential overstock/under-stock situations, promotional information, and production changes.
Network aware – inventory planning is done taking into account the requirements of the entire supply chain network including suppliers and customers.
Collaboration - new browser-based technology allows for planning through the participation of the entire supply chain community. This was previously not possible in the past, where systems were not open to integration.
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