How does your purchasing department currently manage its vendor base? For instance, does your enterprise rely upon enterprise mobility solutions that empower your purchasing department to better manage incoming shipments of raw materials and finished goods? Or, do you handcuff your purchasing department by asking them to rely upon manual vendor management practices, ones that aren’t live and can’t possibly give your company the kind of up-to-the-minute data it needs to manage its inventory, its vendor’s deliveries, and most importantly, its supply chain? Granted, these three questions are set up to lead you, the reader, into the eventual conclusion that manual processes are problematic and costly, while enterprise mobility solutions are accurate and timely. Well, the simple fact is, manual processes are costly. They are problematic and time-consuming and most importantly, they do make it extremely difficult to manage a vendor base in today’s fast paced business environment. Put differently, if your company is using manual processes, but your competitors are using handheld rugged computers, then whom do you think is better able to manage its supply chain? Bottom line, your company needs to do away with manual processes.
Posts Tagged ‘cycle count’
Interested in knowing how upgrading your manual processes to enterprise mobility hardware can help reduce inventory carrying costs for your company? Perhaps you are unaware of what these expenditures entail and how detrimental they are to your bottom line. Do you know that your inventory costs are likely driven by two main factors? One is your costs to purchase and hold inventory, while the other is your cost of losing revenue when inventory is not in your warehouse. Most enterprises assume that their carrying costs only pertain to the time it takes to purchase, hold and sell their inventory. The time it takes to complete these steps means companies must invest large amounts of capital in inventory without immediate returns. Equally impactful are the high costs associated with losing market share and sales, simply because your company does not have the right amount of inventory to fulfill customer orders. That comes from inaccurate inventory counts and tracking, which is often the result of companies that are slow to adopt best business practices with respect to how they manage their inventory. However, upgrading your warehouse management practices with enterprise mobility solutions can reduce the impact of these costs across the board. What can you expect from upgrading your inventory processes?
How can upgrading to an inventory management software platform reduce the costs associated with inventory audits? In order to answer this question, think of how time-consuming, redundant and repetitive the dreaded inventory audit can be. Think of how much it costs to perform these audits and the frustration you encounter when uncovering inaccurate inventory levels and counts. At the end of every quarter, and every fiscal year, employees manually count inventory in order to reconcile actual inventory against what is reported on the “books”. Some companies force their employees to give up their weekends, while the vast majority must cover overtime to perform what most agree is a mundane task. It is both time consuming and costly. However, it need not be this way!