NetSuite’s Inventory Management Tips That Maximize Savings
It’s a common misconception that cloud computing software is only relevant to “knowledge industries.” And while this may have been true at some point, cloud computing has come a long way since its inception. It has become much smarter and more intuitive, allowing companies in various industries to be more dynamic and efficient.
The use of cloud computing software in service industries is quite common—and its gaining traction in product-based companies too.
In this blog post, we’ll discuss some techniques on how to maximize savings by tackling one of the most complicated processes product-based companies face: inventory management.
Design an Inventory Control Plan
An effective inventory control plan has several key features; choosing a software system isn’t enough—you need to address several other factors on an ongoing basis. These include reducing warehouse space, setting up vendor relationships, and using a forecasting formula to order supplies.
Plan and Prepare
Inventory management and control is an ongoing process that isn’t confined to just the warehouse. Updating your plan on a routine basis is necessary to bolster productivity.
Moreover, tracking metrics and updating forecasts for future months is crucial if you want to ensure that customers get the products they need when they need them. Your plan can also vary based on seasonal changes and world events.
Maintain Critical Stock
Any item that constitutes a large portion of your revenue or is the backbone of your sales needs to be monitored closely. Critical stock levels should be maintained at all times to avoid a stock-out.
Web-based inventory management systems allow for real-time visibility, allowing you to monitor and manage stock levels at a glance.
Balance Inventory Costs and Inventory Levels
Inventory management is the foundation of a well-functioning retail business. It requires the careful balancing of inventory costs, with the benefits of having stock on hand. Too much inventory on hand and your money is tied up. Too little inventory and you risk losing business because the item isn’t in stock. For example, Walmart missed out on over $3 billion worth of sales in 2014 because bad inventory mismanagement led to stock-out.
Weigh the total cost of your stock, including storage costs and perishable items, against demand and the cost of a stock-out to determine the optimal solution. Online inventory management solutions can help you manage inventory levels and keep costs low through real-time data.
They allow for synchronization between both ends of the warehouse-to-sales spectrum so stock can be replenished as soon as a sale is made.
Select an Integrated System
As mentioned before, inventory doesn’t just exist within a warehouse—it is closely connected to all other functions of a business. Marketing, HR, and finance all need to know which products are selling, which areas to invest in, and which people to hire based on inventory data.
An integrated inventory management solution, such as NetSuite Advanced Inventory addresses this problem by synchronizing processes across all business functions. It can streamline core inventory processes to other departments automatically, allowing businesses to save money and time.
Choose experienced NetSuite Implementation Partners Today
Ravenstone Solutions is a renowned NetSuite solution provider that helps organizations implement NetSuite tools in their business. We help clients through every phase of the process; from planning, implementation, integration, and training and support to customization.
Our team of NetSuite experts can help you integrate online inventory management software in your business with ease.
Get in touch with us at 1(800) 459-7128 for more information.