Insight-Driven Inventory Management With MYOB Advanced

Real-time access to intelligent data across the supply chain enables businesses to operate sustainable and profitable inventory management systems. It makes it possible to meet demand on time and increase customer satisfaction. If you’re using the MYOB Advanced ERP system, insight-driven inventory management can help track stock levels, reduce operational costs, and give your business a competitive edge.

Here’s what you can accomplish with insight-driven, data-centric inventory management:

#1 – Minimize Overstocking

You can minimize overstock and stock-outs by tracking your inventory levels in real-time and making appropriate purchase decisions. Restocking items without confirming the quantities or status of old inventories can cause several problems, including:

• Cash flow: Stock that doesn’t leave your warehouse ties up cash you could spend on other mission-critical day-to-day business operations.
• Operational costs: Dead stock never justifies its storage cost.
• Stock clearance losses: You may have to sell at a loss to salvage what’s left of your excess supplies.
• Demand distortion: Overstocking makes it difficult to analyze and forecast demand.

ERP solutions enable supply chain executives to monitor inventory changes, such as after the:

• Purchase of new supplies
• Loss of stock through theft, destruction, or expiry
• Sale of inventory to a customer

With MYOB Advanced, you can assign serial numbers to items or lot numbers to inventory batches so you may track their movement from the source, through your warehouse, and to the customer. Physical inventory count is calculated automatically, giving planners accurate real-time figures to work with.

#2 – Improve Customer Service

The ability of the supply chain to meet demand is critical to customer satisfaction and retention. Enterprises need to embrace insight-driven inventory management, which makes it possible to deliver supplies to the customer in time. In MYOB Advanced, the inventory management module integrates seamlessly with purchasing, order, and financial management applications, providing optimal visibility into the supply chain. It enables supply chain executives to match inventory levels with real-time data such as sales or fulfilled orders.

Inventory planners can foresee what items require restocking before customer-specific orders come through. In the end, customers always get what they want, when they want it. It all translates to more sales revenue.

#3 – Allocate Inventories More Cost-Effectively

A good ERP solution provides the capability to allocate merchandise based on demand analytics and current inventory levels. Retailers can then replenish their warehouses depending on real-time stock movement. Allocating items to strategically-located distribution centres helps to optimize full-price sales by delivering the right inventory where it’s needed. It also minimizes the cost of moving items from one distribution outlet to another at the last minute for order fulfilment.

#4 – Get Inventory Valuations Right

Insight-driven inventory management includes getting stock valuations correct. Using valuation approaches such as moving average or FIFO, you can determine accurately the cost of merchandise sold as well as gross profit. Also, stock valuation impacts the minimum physical inventory count you need to keep at all times to guarantee sustainable business operations and healthy cash flows.

#5 – Increase Inventory Planning Efficiency

An integrated ERP system provides insights that can help simplify otherwise intricate inventory planning processes and functions. It introduces visibility into the entire supply chain, and it harmonizes various touch points of inventory planning. Supply chain planners can use up-to-date reports on current stock levels, inventories in transit, and even reorder levels and quantities to match supplies with forecasted changes in demands for products.

MYOB Advanced has excellent capabilities for insight-driven inventory management. It provides real-time data to inform streamlined inventory planning and to enable retailers to match demand and supply and deliver the right goods to the customer at the right time. In-depth supply chain analytics help reduce warehouse operation costs, maximize sales revenue, minimize dead-stock losses, and enhance cash flow.

Are you experiencing difficulty streamlining inventory management with MYOB Advanced? Consult us at Leverage Technologies for professional assistance!