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Inventory, distribution and ERP

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Over the last sixteen years I have worked for a wholesale distribution warehouse business. During the time as IT manager we used ERP software to run our POS and our back end accounting needs. With ERP you can receive a complete sales order management solution that could provide available-to-promise an order and capable-to-promise alerts and processes during order entry. This kind of information that can improve order line item fill rates and will help you to reduce on-hand inventory carrying costs. By using this type of software you will be improving your overall customer service and in-turn customer satisfaction.

Where I spent most of my time is with Inventory management. In the wholesale distribution industry you need to use a software solution that is fully-integrated with the warehouse management system and is barcode-enabled for use of RF to improve inventory control. ERP software will also help you with inventory procurement and most importantly control inventory. This is one of your most important steps to controlling your inventory costs.

One of the custom software packages that I wrote for inventory was for making parts for distribution. In the businesses inventory needs, the first part of the parts making process was to buy raw materials, poor the melted material into a mold, then the part would go through a several step process until it is a complete part for shipment. The need was to know what costs of material and parts were in each of the many steps to complete the part for the customer. One of the most important steps was the value of the parts in the ready-to-ship stage and getting the parts shipped to the customer. The soon you ship, the sooner you can bill.


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