Wouldn’t it be nice to have a crystal ball that lets you check on your company’s operations whenever you want?
It’s not too good to be true. You just need an enterprise resource planning (ERP) system.
An ERP is the ultimate tool for monitoring a business’s day-to-day, from accounting updates to production delays, empowering businesses of all sizes to make smarter, data-driven decisions. And it’s crucial for taming inventory chaos, whether you’re dealing with supply chain disruptions or a high volume of returns.
Let an ERP inventory management system free up your time so you can focus on what truly matters: growing your business. This guide is your roadmap to transform your inventory and warehouse operations.
ERP inventory management system: An overview
ERP software is a comprehensive system that organizations can use to track finances, logistics, operations, and inventory in one place. ERP systems originated in manufacturing to oversee complex processes and large-scale production, but their adaptability has made them valuable tools for businesses across every industry.
An ERP inventory management system is a game-changer for any business that holds inventory, from pharmacies and factories to retail stores. It can show order statuses and expected delivery dates in real time to help you address bottlenecks or address delays.
But it’s especially valuable for those struggling with stockouts and overstocking or inaccurate inventory data. The centralized platform makes it easy to check inventory levels, manage sales orders, or optimize stock control, improving how every team member tracks inventory status.
How ERP impacts a business’s inventory management
Implementing an ERP system can significantly impact a business’s inventory management in several ways.
1. Real-time inventory tracking
Gain up-to-the-minute visibility into stock levels across all locations with real-time updates. Your system can tell you when a product sells, gets packed in the warehouse, or has a shipping label attached. This reduces the risk of stockouts, which can lead to lost sales and frustrated customers, and helps prevent overstocking, minimizing storage costs and risks of inventory obsolescence.
2. Improved accuracy
Manual data entry is prone to mistakes, but ERP systems automate data collection and synchronization to ensure accurate inventory counts and reduce the need for time-consuming reconciliations.
3. Enhanced forecasting
By understanding trends and patterns, businesses can optimize inventory levels, keeping enough stock on hand to meet customer demand without tying up excess capital in inventory. Use historical sales data and predictive analytics from your ERP to forecast demand more accurately.
4. Streamlined operations
Integrate various business functions in an ERP to ensure smooth coordination and efficient workflow across procurement, sales, and warehousing.
For example, after receiving a sales order, the ERP system automatically updates inventory levels, triggers the reordering process when stock levels get too low, and generates customer invoices, reducing manual intervention and improving operational efficiency.
5. Cost reduction
Optimize inventory levels to reduce carrying costs, excess inventory, and waste. Efficient inventory management also reduces the need for rush orders or expedited shipping, further lowering costs.
6. Better decision-making
ERP systems provide detailed reports on metrics like inventory turnover, sales performance, and profitability by product, allowing businesses to identify top-selling items or slow-moving stock. Knowing the highest and lowest value SKUs lets you better plan future inventory purchases.
7. Increased productivity
Manual tasks like data entry, order processing, and inventory reconciliation are time-consuming — ERP systems automate these routine tasks, allowing employees to focus on high-value activities like customer service and strategic planning.
8. Scalability
As companies grow, their inventory management becomes more complex. ERP systems can adapt to growing business needs, meaning easier scaling of inventory practices as the business expands.
8 tips for improving your business’s ERP inventory management
To maximize the benefits of your ERP inventory management system, consider these tips:
- Automate inventory processes: Utilize ERP system automation features to streamline ordering, tracking, and reporting tasks. This reduces manual effort while minimizing errors and freeing staff to focus on more strategic activities.
- Implement real-time tracking: Use real-time tracking for proactive inventory management, ensuring you have the right products in stock when customers need them.
- Conduct regular audits: Perform periodic physical inventory audits to verify system accuracy and identify errors. Regular audits help maintain data integrity and uncover inconsistencies between physical inventory and system records.
- Optimize inventory levels: Set optimal reorder points and safety stock levels to balance supply with demand and reduce holding costs. By analyzing historical sales data and lead times, you can determine the ideal inventory levels to avoid stockouts while minimizing excess inventory.
- Leverage data analytics: ERP systems often include robust reporting and analytics tools that show trends in inventory performance. Use this knowledge of your high-value SKUs to make data-driven decisions.
- Integrate with other systems: Integration eliminates data silos and helps information flow smoothly across departments, improving efficiency and accuracy. Ensure your ERP system integrates seamlessly with other business systems you use, like CRM, accounting, and eCommerce platforms.
- Train employees: Provide comprehensive training for staff on ERP system functionalities and best inventory management practices. Well-trained employees can maximize the ERP system’s benefits, ensuring accurate data entry and optimal inventory levels.
- Establish vendor management processes: Implement vendor performance metrics to track deliveries and confirm that you can count on suppliers for reliable and timely inventory replenishment. If you can’t, try to find a new one that always fills orders on time.
Streamline your inventory management with Fishbowl
If you need an inventory solution, consider Fishbowl Advanced. Our software acts like an ERP when integrated with accounting, shipping, CRM, and other solutions. It’s a robust system that empowers businesses to take complete control of their inventory — with a lower price tag than standard ERPs.
And, with so many integrations available, you can keep using your tried and true business solutions while counting on Fishbowl to manage everything inventory related.
Here’s more about why Fishbowl is the ERP alternative that will revolutionize your inventory management.
Accounting integrations
Eliminate manual data entry errors and ensure accurate inventory records with Fishbowl’s seamless integrations with QuickBooks — both Online and Desktop — and other accounting software solutions like Xero and Reckon. These integrations ensure your financial and inventory data are accurate and in sync, providing a clear and comprehensive view of your business’s financial health.
Wholesale distribution
Expedite your wholesale distribution process with Fishbowl’s advanced features. Set up automatic reorder points to maintain optimal stock levels, which prevents costly stockouts and ensures you can meet customer demand.
Fishbowl also generates insightful reports on sales trends, empowering you to make effective inventory allocation and purchasing choices.
Manufacturing tools
Take control of your manufacturing operations with Fishbowl’s comprehensive suite of tools. Track products throughout their entire lifecycle — from raw materials to finished goods — using work orders, manufacture orders, bills of materials, and more.
Fishbowl’s manufacturing inventory tools also enable you to monitor production progress to guarantee a smooth and efficient process.
Inventory tracking
Leverage Fishbowl’s barcode scanning and mobile device capabilities to eliminate manual counting errors and track inventory movements in the warehouse from wherever you are. This lets you guarantee your team can successfully receive shipments, fill orders, and perform cycle counts.
Picking and packing
Streamline your order fulfillment process with Fishbowl’s intuitive picking and packing tools.
Generate pick tickets in Fishbowl to guide warehouse staff to the exact location of each item, minimizing errors in order fulfillment. Or, try batch picking, which lets workers select and fill multiple orders simultaneously to save them time in the warehouse.
Fishbowl’s reporting allows you to analyze inventory movements and make data-driven improvements to your warehouse layout and workflows.
Shipping solutions
Shipping features are built into Fishbowl’s user interface, so you don’t have to leave the platform to compare prices, print shipping labels, or request carriers to get a shipment. Choose from UPS, FedEx, USPS, DHL, and more.
Payment processing
Enhance the customer experience with Fishbowl Payments, which allows you to streamline payment workflows and provide customers with a flexible, secure, and convenient payment experience. Having payment processing integrated into your inventory management platform further reduces manual data entry and the risk of human error, saving you time and getting you paid faster.
Customer relationship management
Empower your sales team with real-time inventory visibility by integrating Fishbowl with Salesforce. Let your sales representatives access up-to-date inventory information directly from their Salesforce login, enabling them to provide accurate product availability and delivery estimates to customers. With this speed, the sales team can close deals faster and boost customer satisfaction.
Book a demo to revolutionize your inventory management today
No more daydreaming about that crystal ball — or footing the bill for an ERP. Fishbowl can show you the past, present, and future of your inventory needs at a fraction of the cost of an ERP system. Plus, you can adapt Fishbowl’s software as you scale to keep the visibility you need.
Still not convinced? Schedule a Fishbowl demo to experience firsthand how our solution will level up your business.
