How to Improve Parts Inventory via Digital Resources
Throughout industries, there are a variety of challenges that the suppliers have to face so that it can be ensured that their customers are getting on-time and accurate deliveries, while steadily decreasing the processing time. For competitive markets and in times of expanding e-commerce, the digitization in supply chain management, procurement, and planning is very important for the suppliers to prove their adaptability.
Improving Parts Inventory via Digital Resources
Software programs are the foundation of digitization and hence, are essential for the supply chain management and parts inventory of the days to come. All the businesses handling parts inventory demand an efficient parts inventory management system. Barcoding has proved to be much important, comprehensive, and dependable methods for managing parts inventory. Barcodes let you track your inventory more efficiently and more precisely, avoids errors in your sales documents and stock adjustments, and saves time crafting reports and fulfilling orders.
Although relying on distinct objectives, not all systems are suitable. Conventional ERP (Enterprise Resource Planning) is no longer enough for crafting maintainable storage cost reductions without harming customer service. Nevertheless, digitization is not the name of assimilating and managing data, but it is the name of skillfully putting the first relative information into employment. It helps to estimate stock-outs, distinguish fast-moving and non-moving stock, prioritize stocks and orders, correctly define safety stocks, predict future demands, initiate procurement and production operations on time, generate cost-optimized orders, present new items by cost-efficient means, optimally collect purchase orders, and take supplier circumstances into account.
All these steps are crucial to achieving the requirements of the fast-paced digital market. Because of the always augmenting amount of data and products with short life cycles and in times of delivery on the same day, it takes employees to achieve this task using only single supporting management software.
Parts Inventory Management
The basic armature and logistics for administering parts inventory for a workshop and retail sales involve evaluating a possible indent level of inventory to control scheduled sales requirements between restocking cycles, generating resources to manage stock, and logistics to transport it in and out of the dealership business system to its concluding usage location. Most of the customers depend on just-in-time processes and place their trust in the excellent quality of service, making reliability one of the leading success factor in parts inventory business. Due to this reason, the internal supply chain processes have to be optimized. Here, the major challenge that you have to face is high warehouse stocks. Lacking items in demand negatively affect service quality. Also, a considerable portion of non-movers and slow-movers stored at the warehouse result in long term tied capital. Other than many process optimization efforts like the setup and centralization of the purchasing control, using business intelligence for optimization of parts inventory management is also very important. Decision-making algorithms use the forecast procedure to consider past sales data and give dependable statements about future demands to achieve stock reduction and increased service levels. Moreover, BOMs (Bill of Materials) for item components are displayed along with the associated suppliers.
Execution of digitized processes enables suppliers to upgrade their companies’ positive image and substantiate trusting relationships with their customers, which are mirrored in new orders and growing profits.
At eBS (www.ebs-next.com), we manage inventory efficiently by keeping in view the materials in stock, on order, back ordered, reserved, over-stocked, and under-stocked on demand. We analyze order and inventory performance, manage cycle counts, view on demand management reports, track vendor performance, and manage electronic purchase order transmission, etc. to improve customer service levels and provide quality services.
Jason Morton is Director of Business Development and Marketing at eBS – [www.eBS-Next.com], leading software developers of 360° Equipment Business Management Systems since 1964.
Our fully, customizable software solution can run, manage, and automate every single department in an equipment company - in real time.