The problems in inventory control and how to solve them

What can we consider an inventory control problem?

Inventory control problems are all situations that involve some type of inefficiency in operations, resulting in higher costs, economic losses, or an inability to detect and address problems or opportunities in this area.

Inventory control issues include overstocking or understocking, inaccurate inventory records, ineffective product rotation management, lack of product traceability, inaccurate data, or inaccurate planning.

For all of these inventory control problems, ERP solutions like SAP Business One are the answer. In the next section, we will look at the most common challenges we have identified after implementing digital inventory management solutions in various companies and how these solutions work to improve this area.

The most common inventory control problems today

Automated and integrated inventory management

One of the most common problems in many companies is the lack of a comprehensive view of the business, lack of visibility into operations, and inaccuracy of data due to the lack of unification of information.

With tools like SAP Business One, we have a solution that brings together all the information and management of inventory inbound and outbound, even when managing multiple warehouses. In addition, it automates repetitive tasks such as registrations, thus achieving a consolidated view of inventory that greatly facilitates tracking and management with real-time data. It is important to emphasize the relevance of having real-time information. Having up-to-date information allows us to anticipate, detect opportunities and inefficiencies, avoiding stockouts and allowing us to foresee future demand.

Customization

Sometimes, the lack of efficiency in inventory control is due to the lack of adaptation of workflows and processes to the specific needs of the company.

Especially in recent years, where competition and demand from customers and consumers are highest, it is vital to ensure that inventory management practices are aligned with unique operational requirements.

To solve this problem in inventory control, it is important to talk about the business dashboards that incorporate the most robust ERPs on the market. These are fully customizable dashboards so that the right user has the necessary information about the processes for which they are responsible. In this way, the process can be adapted to the millimetre.

Tracking Lots and Serial Numbers

Due to the demand for higher quality products and greater agility in the process of shipping and receiving goods, many companies face the problem of traceability in inventory management.

Traceability ensures that we know where the product is at all times and allows us to quickly identify potential mishaps, such as a faulty batch, thus ensuring regulatory compliance and final product quality.

Given the agility demanded by the market and the continuous changes that occur, the only way to carry out proper product traceability is through a comprehensive tool such as SAP Business One, which allows detailed tracking of batches and serial numbers.

Integration with supply chain and purchasing processes

If we talked earlier about the importance of having a comprehensive tool for the traceability of a product, the same applies to the supply chain as a whole. We need a vision of everything that happens and, therefore, we must know all the information from all areas related to inventory management.

This problem in inventory control produces inconveniences with many suppliers and imbalances in both demand and production. For this reason, we recommend an ERP, because it not only covers stock management, but also the rest of the areas within the same system, such as the sales area. Thus, the system can, for example, automatically generate an order preparation with a purchase, allowing a continuous and up-to-date flow of information.

Turnover analysis and stock optimization, as well as inventory valuation

For companies with products with obsolescence or expiration, stock rotation and optimization become one of the inventory control problems that most concern and generate difficulties. Errors and inefficiencies in this area produce obsolete inventories and high maintenance costs.

To address these issues, solutions such as SAP Business One offer business process analysis tools to optimize inventory levels through continuous assessment of stock levels relative to demand, allowing adjustments to be made. In this way, it is easy to identify products with low turnover, products close to the expiration date or simply manage offers and financial valuation more accurately.

Demand forecasting tools

The last of the problems in inventory control that we will deal with in this blog has to do with the need to respond quickly to changes that occur and that require readjustments in processes.

To do this, we must not only have real-time control of the status of our inventory, but also have analysis systems that, through historical data and the current situation, allow us to obtain valuable information to identify patterns, trends or future shortages.

Today, to solve this problem, there is technology such as business intelligence, which is incorporated into cutting-edge ERPs such as SAP Business One. Through this set of techniques, processes and tools, we will be able to transform our data into information that allows us to anticipate.

Solve your inventory control problems with SEIDOR

As you may have seen, most of the problems in today's inventory control have their solution with an ERP. At SEIDOR, we have successfully implemented SAP Business One to optimize inventory management. Do you want your company to be next?