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With the right software, processes can be unified, standardized and thus more efficient. If companies rely on ERP inventory software in Saudi Arabia valuation can even be integrated into general and cross-departmental IT infrastructure. This allows the sales department, for example, to retrieve information directly from production. Delivery dates can then be globally estimated during the first customer meeting.
Further Advantages of ERP Software in The Field of Inventory Valuation:
ERP solutions offer clear and transparent data structures, but also inventory procedures. Standardized modules from ERP vendors are usually individually adaptable to company requirements.
For example, companies can decide what type of inventory the software uses; it can be the permanent inventory, the inventory by reference date or the sample inventory.
Stock variations are automatically recorded by the software. As soon as the delivery notes are sent or the production quantities are confirmed, the system saves the corresponding information. This allows all parties involved (purchasing, sales and production) to access stocks without additional communication effort.
Of course, the software also provides important information that is of interest to company employees.
What stocks are currently in the warehouse? How are they assessed? Are there any items that are no longer needed? What influence can a personalized prefabrication have? Is there a risk for purchases? Companies are then able to administer inventory valuation with ERP.
Which also becomes much more efficient. Through the software, information is made available to all departments in the company, eliminating a large volume of communications once required.
Why Is Inventory Valuation So Important?
An efficient and structured inventory valuation offers companies competitive advantages from many points of view.
For example, it makes it possible to reduce the sums committed by purchasing on a just-in-time basis.
Thus, raw materials, consumables and supplies are only stored in the company for a short time and are directly used for production. This mode of operation automatically makes it possible to drastically reduce the company’s need for working capital.
At the same time, warehousing costs are reduced because raw materials require less storage space. Ideally, these are not even stored, but directly delivered to the corresponding machines and used on the spot.
Customer Satisfaction Is Significantly Improved. It is only through well-functioning material planning that the necessary items are available at the right time, in the right place and in the required quantities and quality.
The deadlines are then respected without problem and the execution times are shortened to the maximum. When the sourcing department, sales department and production department work together in perfect harmony, material planning establishes needs.
Subsequently, production proposals and supply recommendations are automatically generated. Material planning checks the extent to which these suggestions are adhered to and, in urgent cases, rectifies deviations early in the process.
Inventory valuation is also important when it comes to warehouse management. The companies are aware at all times of the quantity of raw materials, finished products, spare parts, etc., present in the warehouse. Additional key figures are automated and calculated at the discounted rate.
Based On This Data, The Following Tasks Can Be Managed Much More Easily and Quickly:
- Shipping planning
- Container management
If companies use modern software solutions for stock valuation, these tasks can also be performed within multiple warehouses and stores.
In addition, the implementation of a supplier portal integrated into the ERP will support companies in their ordering and invoicing processes.
This solution makes it possible in particular to simplify, structure and dematerialize the exchange of information with your suppliers. In concrete terms, this means monitoring the progress of orders in real time.
But also reducing the manual and administrative tasks of the teams. Thus, the information concerning the variation of stocks will be automatically updated.