ERP with Bin-level Inventory Management Can Transform Your Business

Today’s economic environment is better than at any point since 2007, and signs point to further growth opportunities across nearly all industries. Strong economic fundamentals, combined with the business-investment-friendly stance of the new U.S. federal administration, are compelling small and midsized businesses to invest in making their distribution systems as robust as possible. Doing so will position them for growth and make current operations more profitable.

In this post, we discuss how a modern ERP system specifically helps you improve bin management to make your warehouse operations a profit driver.

The Benefits of Detailed Bin Management
Physical inventory is complex, particularly if your business maintains a large quantity of inventory, including those in the retail, medical distribution, and food and beverage industries. By using the bin-level inventory management capabilities of a modern ERP system, you can gain multiple benefits immediately, including:

  • Tracking of inventory across multiple bins
  • Knowledge of where inventory is at all times
  • Reduction in put-away and picking errors
  • Optimized picking efficiency
  • Improved customer service
  • Faster warehouse turnaround times

When bin management is combined with ERP financials, your business gains insight into the items that truly deliver the profits.

Flexibility for Your Unique Business Requirements
Whether you’re receiving, issuing, or transferring goods, modern ERP enables both automated and manual allocation of goods to and from bin locations. As a result, you can restrict the items stored in a bin location based on batch, item, or item group. You can even automate bin replenishment based on minimum inventory levels that you set. This avoids costly stock-outs caused by breakdowns in manual order processes.

Modern ERP systems support a variety of stock valuation methods that are adjustable for every item (e.g., FIFO, weighted moving average, etc.). By incorporating valuation data with planning data, your team can define an array of criteria for orders: lot size, minimum order quantity, order intervals, average lead time, and procurement method (e.g., ‘make’ or ‘buy’).

At the product level, you gain further flexibility with ERP. For example, you can maintain serials and batches in your bin locations and choose to have the items picked based on their bin locations or their serial and batch information. Additionally, you can use automated generation of serial numbers upon release of an item from stock or create and assign them manually for each transaction. With batches, you can assign specific batches to products, with each batch defined by any number of attributes you create. The batches can then be defined for associated products in sales orders, delivery notes, and stock movements.

All-in-one Financial & Inventory Management
By associating a set of master data with each item in your warehouse(s), a modern ERP system provides bin-level inventory management capabilities normally found only in inventory management systems. But why buy two systems when a single ERP system can manage all the financial and operations information surrounding your items and products? You can leverage the ERP system across the board for your inventory management and financial reporting needs – streamlining the business while positioning it for enhanced profitability and growth.

To learn more about optimizing inventory management and financial reporting simultaneously, contact LBSi today.