All You Need to Know About Inventory Optimization
Inventory management software (also called inventory planning software) goes beyond simple record-keeping to provide optimization, simulation and analysis you need to make better supply chain management decisions.
Inventory management software can reduce inventory costs and improve customer service at the same time. It secures that the right amount of stock is in the right place at the right time and at the lowest possible cost. It has become a critical tool in many organizations as inventory carrying costs can be reduced by upwards of 30%.
Inventory management software is available standalone or in ERP and supply chain management (SCM) suites. However, not all solutions includes inventory optimization and product life-cycle tracking which are key components for successful inventory management.
The quickest return on investment often comes from lower carrying costs. Below is a direct quote from an EazyStock customer outlining their operational and financial benefits of optimizing their inventory:
We reduced our stock levels by over $1 Million, corresponding to 23%, reduction in inventory while at the same time improving our service level by 13% points
Svante Stenström, Supply Chain Manager at AxIndustries.
3 main advantages optimizing inventory management with software:
Inventory management software must be integrated into existing ERP systems, often at great expense. Evaluate different system provider’s capabilities to integrate or transfer data between your ERP and the inventory management solutions. Often an implementation project takes 3 to 6 month but with EazyStock, you can get started with a simple Excel import and export data transfer. We have you up and running in days and your business will get value from the system within a week.
Users often need training in inventory management methodologies before being able to handle the software. Just because the functionality in a system is advanced, it doesn’t mean that the user interface and usability requires a Ph.D. degree. We believe that every manufacturing and distribution company keeping stock should have access to a great inventory optimization tool that is easy to understand and maintain. This is why we have developed EazyStock.