Would you Trust Anyone Else with your Warehouse Management Process?

In one of our blog posts a few months ago, we introduced the concept of improving your inventory management processes by using an ERP system such as SAP Business One. We had such a great response to that post so we thought we would dig a little deeper into the heart of any distribution company – warehouse management. How is yours looking?

You’ve probably already heard this a lot, but it’s worth recapping why your inventory management system is such an important element for overall business success, particularly for SMEs:

  • Too many products

    . This leads to dead stock, space wastage, tied-up cash, fewer resources to invest in growth-enabling activities

  • Out of stock products.

    An administration nightmare ensues with back-orders, pre-orders, poor cash-flow, lost sales, frustrated customers, frustrated warehouse staff

  • Missing stock.

    The stock take says you have it, the computer says it hasn’t been sold and yet it is nowhere to be found. This usually results in buying more stock, often unnecessarily. On a larger scale, this can be an expensive inconvenience.

  • Unknown levels of stock.

    Mismatched quantities between what the computer says and what the stock take says – this can lead to either, or both, of the first two points above.

If you’re at this point in your own business and are looking for improvements, considering an integrated warehouse management system is the logical next step. But before you buy an independent product, consider these vital points so you can be sure you make the right choice:

  1. If needed, is the software able to identify and correct unusual inventory movements? This could be sporadic receipts and issues of items.

  2. Does the software have various forecasting tools and methods for items with different sales patterns?

  3. Can the software calculate forecasts for future months and ad-hoc activity?

  4. Can the system incorporate accurate information from sales, sales forecasts, on-hand inventory, min-max inventory conditions, open purchase orders and other sources into the demand forecast?

  5. Will the system enable you to propose stock quantities based on previous average forecasts and actual sales?

  6. Will the software enable you to optimise warehouse operations with automatic bar coding?

  7. Will you be able to replenish various warehouse stocks from a central location or distribution centre?

  8. In terms of analytics and reporting, does the system enable the following:

  • Comprehensive, accurate and up to date reporting on all products in each warehouse location based on sales?

  • Customer service and other service level agreements (SLAs) such as availability, shipping and delivery dates?

  • Accurate inventory turnover statistics (inventory aging – span of time inventory has been in the warehouse etc)?

  • Figures to show excess inventory?

  • Accurate inventory information to support Availability to Promise

The SAP Business One inventory module enables all of this, and more. An integrated ERP – SAP Business One – combines all elements of your business into one user-friendly platform. The improvements within the warehouse operations will result in far-reaching benefits all the way to your satisfied customer base due to the timely information provided and efficient services your company can provide.

Sample SAP Business One Inventory Audit:

[Image courtesy SAP AG]


SAP Inventory Management System:

[Image courtesy SAP AG]

Here are just some of the many ways which SAP Business One warehouse and production management modules can help you and your business:

  • Become more efficient with next-generation, accelerated, automated processes

  • Be the supplier of choice with on-time deliveries, fewer shortages and stock-outs

  • Improve cash-flow with improved inventory control and materials planning

  • Gain business insight with sophisticated warehouse and inventory-reporting tools, available on SmartPhone and tablet devices


Sample iPad Inventory Analysis:

[Image courtesy SAP AG]

Sample iPhone Inventory Analysis:

[Image courtesy SAP AG]


With the upcoming Version 9 release of SAP Business One you can expect additional innovations in the inventory management module. This release is slated to be available by the end of 2012.

Why would you trust anyone else to manage your warehouse?

Want to see SAP Business One’s inventory management module in action? Watch the video here.

Would you like more information about how Blue Ocean Systems can help you improve your inventory and warehouse management processes?

Click here to contact the Blue Ocean Systems’ team of experts today.


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