Inventory management is one of the most frustrating and costly tasks associated with today’s businesses. The cost to keep products in stock and manage them effectively is overwhelming, and many companies are buckling under the pressure. High costs and low inventory control doesn’t have to be your reality, however. With the right strategies and technology, you can reduce the costs associated with inventory management and improve your inventory control.
Companies pay overwhelming prices in order to keep materials and resources in stock, a fact that often cripples manufacturing and distribution companies. When the actual prices become too unbearable to handle, companies turn to inventory management software like Sage Inventory Advisor. In fact, a recent study shows that almost 52% of manufacturers found that reduced inventory costs was the primary benefit of investing in inventory management software.
Sage Inventory Advisor is an inventory management software solution designed to help you make sense of your inventory situation and regain costs lost due to poor inventory management strategies. Take a look at how Sage Inventory Advisor can help your company reduce the following types of inventory-related costs:
- Ordering Costs
Companies don’t come into being with inventory already in stock. Inventory must be produced or refined from existing materials and ingredients. There are high costs associated with acquiring such products, and companies often have to rely on credit and investments to make their procurement possible. Sage Inventory Advisor can be set up so that very precise records of what has been used in the past (and potentially what will be needed going forward) can be accessed, making correct orders and proper volumes a lot easier to come by.
- Carrying Costs
Once a company’s inventory has been produced, organizations need to create a plan to hold on to their inventory and keep it ready for sale and distribution. Some products, such as inert metals, are cheaper to store and will not require nearly as much care and investment as other products (say live animals or volatile chemicals). It’s crucial to closely monitor carrying costs of inventory, for carrying costs are often dynamic and can change based upon the price of certain supporting materials or emerging technology. Sage Inventory Advisor will not only help you manage your inventory, but it will also help you better monitor your carrying costs, ensuring your company substantial cost savings.
- Shortage and Replenishing Costs
While the distribution of inventory is not necessarily governed by inventory costs, shortage and replenishment certainly are. What does this mean to your manufacturing or distribution company? This means that it can become very costly when unforeseen circumstances arise or if stores of materials need to be quickly replenished. Costs that are not planned on ahead of time are often much higher than expected and, as a result, throw off the entire cycle of procurement, ordering and carrying. Sage Inventory Advisor can be used to moderate these problems by keeping costs foreseeable and in line with the company’s prior projections.
If you are looking for a simple solution to help manage your inventory and inventory-driven costs, Sage Inventory Advisor is the perfect solution. The first cloud-based solution to be released for hosted and on-premises Sage 100 ERP systems (formerly known as Sage MAS 90 / Sage MAS 200), Sage Inventory Advisor can help manufacturers and distributors improve their inventory management processes and profitability at the same time. Contact us today to learn more.