What is Inventory Management ERP?

ERP Inventory Managemen t

What’s Inside ?

• What is Inventory Management?

• Why Managing Inventory is Important?

• Stat Facts • What is ERP Inventory Management System?

• How ERP Resolves Inventory Management Challenges?

• Ways To Use ERP For Inventory Management • BatchMaster ERP • Industries We Serve • Modules List • Benefits of BatchMaster ERP’s Inventory Management

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What is Inventory Management?

• Inventory management, or, stock control, deals with the process of ordering, storing and using company's inventory.

• Here, the stocked goods, inventories, and non-capitalized assets are properly arranged and managed according to their specific shape and placement.

• Considered as an asset, inventory is managed and recorded using company's balance sheet.

• It usually includes generating the lead on raw materials, components, and finished products, alongside warehousing and processing of such items in any company.

• Effective inventory management involves assuring that the right level of inventory is in the right place at the right time.

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Why Managing Inventory is Important?

• To optimize inventory, reduce costs, and streamline entire supply chain operations.

• To sync warehouse activities with other business operations, and create one cohesive unit that allows efficient running of business.

• To eliminate duplication in ordering stock.

• To minimize loss through deterioration, pilferage, wastages, and damages.

• To ensure a continuous supply of materials and stock so that production does not suffer.

• To avoid both overstocking and under-stocking of inventory.

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Stat Facts • 34% of businesses have shipped an order late because they inadvertently sold a product that was not in stock.

Takeaway: Poor inventory visibility means inability to meet customer expectations, which ultimately leads to decrease in customer satisfaction.

• Approximately 72% of all retailers plan to leverage real-time inventory visibility—enabled by automation, sensors, and analytics—to reinvent their supply chains.

Takeaway: More visibility into the business increases productivity.

• Reducing stock-outs and overstocks can lower your overall inventory costs by 10%.

Takeaway: Save a significant amount of capital for virtually any operation, which could be used in other business processes such as – R&D, business expansion, automation, recruitment etc.

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What is ERP Inventory Management System?

• ERP , the abbreviation for Enterprise Resource Planning are actually software and systems used to plan and manage all the core supply chain, manufacturing, services, financial and other processes including inventory management of an organization.

• The ERP inventory management system ensures that the right level of inventory is in the right place at the right time.

• It keeps track of a company’s stocked goods and monitors their quantity, dimensions, and location.

• The ultimate goal is to minimize the cost of holding inventory by telling when it’s time to replenish products, or buy more materials to manufacture them.

• An effective ERP for inventory management: • Avoids stock wastage • Eradicates dead stock conditions • Saves on storing space and overhead costs

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How ERP Resolves Inventory Management Challenges?

• Improves Inventory Turnover - Automates calculations of inventory items and eliminates human error.

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Balances Inventory Level Considers lead time so that entire supply chain cycle could be balanced.

In case of any shortages, it automatically changes the inventory order to unavailable till the further sales request.

Also, alerts the manufacturer in case of material shortage or deficiencies.

• Provides Accurate Reporting and Real-time Data Access - The data/information is stored on a centralized platform, which could be accessed from any device 24*7.

- Provides pre-calculated summaries to win-over promised targets.

• Efficient Material Requirement Planning - Determines possible time frame to produce goods and purchase raw materials whilst meeting customer deadlines.

- Modifications to the production schedule can be updated immediately for any changes in orders and/or materials.

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How ERP Resolves Inventory Management Challenges?

• Maintains adequate stock level - Analyzes historical sales data and past seasonal trends to set realistic safety margins.

- ERP inventory software allows for “par levels” (minimum inventory thresholds) to be set for each product.

- Generates and sends the purchase request automatically.

• Eliminates Dead Stock - Keeps a track of purchased and manufactured products.

- Notifies about product’s expiry dates, shelf lives, and forecasts when they become unprofitable, and when stock becomes “dead”.

• Lot Traceability - Offers forward and backward lot tracking, information can be accounted from the beginning of the process to the end.

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Ways To Use ERP For Inventory Management • Get a holistic view of entire inventory-related activities including financial transactions.

• Classify products and group them on the basis of different methods such as ABC, product, item type, sub types.

• Manage multiple units of measure (UoM), and keep a record of every item/product in detail.

• Set different valuation methods such as – FIFO, LIFO, average cost, etc.

• Know about standard supplier, set allocation methods, define costs and mention alternate substitutes for the products.

• Track items right from their entry as a raw material from the vendor to their exit as a finished good to the supplier/customer.

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Ways To Use ERP For Inventory Management • Find the exact storage location of the items placed in warehouse.

• Manage their shelf lives and expiry dates to eliminate wastage and assure quality.

• Provides suggestion on when to procure the material, and helps in forecasting the future stock needs.

• Validates products to identify signs of damages such as leaks, tears, broken seals, discrepancies in the product description, or any faults etc.

• Defines quality inspection plans based on certain checklists, or other properties to enter into the testing phase.

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BatchMaster ERP • Offers Process Manufacturing ERP Software with a range of other spectacular products specifically for formula/recipe-based manufacturers.

• Developed to streamline business-critical operations, this process manufacturing ERP handles everything from Product Development, Formulation, Planning, Procurement, Production, Quality, to Compliance, Sales & Finances.

• Suited for industries such as - Food & beverages, Paints & chemicals, Cosmetics, Pharmaceutical and etc.

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Industries We Serve

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Modules List

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Benefits of BatchMaster ERP’s Inventory Management • Real-time and Multiple Location Tracking - Helps manufacturers track inventory levels across the entire length and breadth of an organization, even their multiple locations.

- Example: A bakery retailer with stores in multiple locations across the city. With an ERP, the owner can access the inventory information & check stock levels across all locations.

If they have a product shortage at one location, they could still close the sale and get it delivered to the client from another location.

•Quick and Accurate Report Generation - Generates detailed reports on inventory levels displaying information like: current on-hand, safety stock, inventory production, inventory to be procured, etc.

- Helps manufacturer avoid the situation of over-stock as well as under-stock.

- Expedites product recalls and ensures complete product traceability.

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Benefits of BatchMaster ERP’s Inventory Management • Buy/Produce Items at The Right Time - Provides in-depth insight for various sources of supply and demand.

- Efficiently plans your production and purchase order considering lead times, resource availability, delivery date.

- Saves last minute expensive purchasing of raw materials during the shortages or uncertain demand.

- Also, suggests procurement strategies during season, offers or promotions.

• Avoids Scarcity - Maintains safety stocks and fast moving product lines, along with handling last minute orders.

- Generates alerts when inventory levels go below the minimum set thresholds.

• Handles surplus inventory - Lets you view and analyze surplus inventory in real-time.

- Balances inventory level so that stock wastages and warehouse space consumption can be reduced.

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Key Takeaways • Inventory control is a vital survival step for any business.

• And, BatchMaster ERP, helps in striking the adequate amount of inventory for your business and drive home greater revenues.

• Avoid all your inventory pitfalls and ensure the right stock at the right location, at the right time is available just to meet the production as well as customer’s demands.

• With BatchMaster Inventory module you can: • Have real-time view of on-hand inventory of intermediates, raw materials and finished goods, including co-products and by-products • Better control over inventory • Comply with corporate and industry mandates • Optimize inventory levels to reduce wastage • Reduce inventory carrying costs and increase inventory turns •To know more about the product, contact us at: sales@batchmaster.com.

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Our Experts Are Incredibly Responsive To Your Queries. Get In Touch!

• Send your queries or demo requests at: sales@batchmaster.com • Want to know more about it, then read our blog by clicking on the link below – https://www.batchmaster.co.in/blog/erp-supports-inventory-management-by-100/ • And, Please feel free to call us or contact us on: BatchMaster Software Pvt. Ltd. (An ISO 9001:2015 Certified Company) Brilliant Solitaire, Plot 6 – A, Office 201-A to 204-B Scheme 78, Part-II, Indore - 452010 Ph: +91-731-4008039 +91-731-4008070 +91-731-4008035

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Achievements so far ..

• 2015 - ISO 9001:2008 Certification • 2018 – ‘Customer’s Choice Award’ by Software Suggest • 2018 – ‘Committed to Deliver Award’ by Software Suggest • 2018 - ISO 9001:2015 Certification • 2018 – ‘BRAND LEADERSHIP AWARD’ at Madhya Pradesh Best Brand Awards • 2019 – ‘Best Value Award’ by Software Suggest • 2019 - ISO 27001:2013 Certification for Information Security

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About BatchMaster Software Pvt. Ltd.  30+ years of experience  ERP solutions for small, mid, and large industries  SAP B1 and Microsoft certified solution  Over 40,000 users worldwide  Headquartered in California, with footprints across the world  Global presence with offices in 3 continents- North America, Australia, and Asia  7 offices round the globe  Available in 3 languages- English, Chinese, and Spanish  Original developer of formulation system in ERP  Consistent record of never exceeding implementation time of 350 to 500 hours

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Thank You! Write to us on : sales@batchmaster.com Choose your system wisely and implement it to make your business perform extraordinarily.