Part IX of a series — Can You Automate Ordering?
At last we’re beginning to wind down on this 10-part series — 10 WAYS INVENTORY MANAGEMENT CAN MAKE OR BREAK YOU. In Part IX we’d like to pose the question, “Can you automate ordering?”
Part IX: Can You Automate Ordering?
If your business has a lot of inventory, then regularly ordering and purchasing those items is something that needs to be addressed. To do this effectively requires a purchaser who can spend time analyzing sales, monitoring inventory levels, and make orders as needed to keep items in stock for customers (or for projects in the case that the items are used for raw materials). While the specific needs of any business vary widely, it is likely that management of inventory can be dramatically improved with computer-assisted ordering.
Overall the key to this is the ability to take advantage of an integrated system that makes it possible to streamline purchasing by automating it. This not only frees up time to focus on other aspects of your business, but it prevents errors and the potential for overlooking needs since it automatically generates orders based on the actual Inventory levels.
So how much time could you save by automating your orders? How many times have customer’s needs gone unfilled because stock on some items was low? Look for a good integrated Inventory Management system that can make all these problems go away and give you a competitive advantage by streamlining your order process.
There are systems where purchase order, sales and inventory are integrated and work seamlessly together — systems that have the ability to set up minimum and maximum quantities for an item. When that item runs low, the system can then automatically generate an order based on those numbers and current inventory levels. There are even good systems that can generate orders based on ‘the least expensive vendor” or other criteria that you can establish so that you can get the best deal possible for your needs and business.
While there may always be a need for careful ordering and review, an option to automate the ordering and fulfillment of the staple items is beneficial. It frees up your time so that you can focus on the areas in inventory and purchasing that require greater attention.
If you would like to read this white paper in its entirety - 10 Ways Inventory Management Can Make or Break You, click here.
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