What kind of reports could be extracted from inventory system after implementation?

ERP CHANGE MANAGEMENT

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What kind of reports could be extracted from inventory system after implementation?

These are some kind of reports, which can help project team to attract users' desire:

• We can get reports i.e. average on hand quantity, usage rate and values for those items that have maximum/minimum usage in specific period.
• The average lead-time from requesting to delivering items from inventory
• Items with maximum inputs to main stores and their information
• Inventories with maximum/minimum inputs/outputs
• Inventories with maximum/minimum value
• Items value (maximum/minimum) with no request in specific period
• Average item waiting time in receipt location
• Items value in receipt location
• Returned goods values in last period

How is the ROI of Inventory Optimization measured?

ERP CHANGE MANAGEMENT

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

How is the ROI of Inventory Optimization measured?

Inventory optimization systems add value by recovering profit from inventory in the following areas:

• Increased profitability by avoiding markdowns and obsolescent write offs.
  
• Lowered working capital cost of holding excess stock through redistributing excess
  
• Better purchase order management
  
• Better cost management associated with space utilization, both at warehouses and stores.
  
• Lower transportation costs through network planning
  
• Eliminating excess stock by accurate forecasting of demand
  
• Increased customer service levels
  
• Improved product mix
  
• Dynamically reduced safety stock and therefore holding costs.
  
• Lost sales reduced.
  
• Slow moving items treated accordingly.
  
• Exception management and event management
  

What are the benefits, advantages and objective of an ERP Inventory system? (Part 2)

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.