Leave 2019 Behind & Let Sage Intacct Inventory Management Help
To say that we’ve come a long way with inventory management processes is an understatement. From manually counting inventory and marking it on a sheet to barcode scanning, how we operate our inventory management processes has evolved quickly in recent years.
Before COVID-19, supply chain management was a crucial part of our everyday lives, but now in 2021, we have to do more with less. However, it’s still not an excuse to stay behind in the past: Sage Intacct Inventory Management can help you move forward into the future. But first, let’s take a look back from 2019 to 2021 and understand how our processes have changed over the past three years.
2019 Inventory Process
Things were simpler back in 2019. During the good old days, you could walk out to the warehouse and see certain items running low on the shelves. Or, you probably looked at the quantities that were reported on hand in your accounting software, knowing they were most likely inaccurate.
Still, at least you had an idea of when something was about to run low. All you had to do was contact your supplier, and before you knew it, your items were on their way. Or, maybe you ordered more items than you needed. You would just let it sit on the shelves for a while until you needed it. Sure, it tied up the cash flow, but your accounting wasn’t looking too closely, and they didn’t know if the numbers were accurate either.
2020 Inventory Process2020 Inventory Process
Similar to how inventory management processes were in the past two years, you could still walk into the warehouse and do a visual analysis of what was running low. You also relied on the numbers reported by your accounting system. However, unlike in 2019, COVID-19 forced many businesses to take a closer look at how they operated their inventory. And while you could have ordered more supplies than you needed and let it sit on the shelf as you did previously, you probably wouldn’t have gotten away with it easily.
Suppose you were like most businesses, and your accounting started sharpening their pencils and cutting down on unnecessary expenditures. In the best case, excess inventory costs your company by tying up funds that could have been used for other business opportunities. In the worst case, the cash tied up could have meant that your business didn’t have the cash flow to conserve cash or invest in improving the business.
2021 Inventory Process
The process has evolved immensely over the last three years. Essentially, everything changed in 2020, so now 2021 is all about adapting from the curveballs the previous year has thrown at us—specifically warehouse and inventory management. Distribution was a critical part of our everyday life during the lockdown, as more people than ever turned to online ordering. Sage Intacct Inventory Management and our solutions were capable of filling that increased demand.
With supply chain disruptions expected to continue into 2021, planning is crucial to ensure you have the products or raw materials you need to fulfill orders. Now is the time for most companies to have a better handle on raw materials and finished goods to avoid stockouts. This year, businesses need to focus on just-in-time inventory processes.
The best way to know when it’s time to reorder is to have complete visibility into accurate inventory levels constantly. You can analyze the data in your ERP all day long, but if it’s not correct, you risk making poor ordering decisions.
Successful businesses will automate their inventory processes to make better inventory choices. Here’s what’s trending in the warehouse for 2021:
- Access to real-time quantity on-hand data – Waiting for inventory transactions to be entered into your ERP and hoping you entered them correctly won’t do. Businesses need to know in real-time what inventory is on hand and get automated alerts when stock levels are low. An automated system that records all your inventory transactions and sends them to the ERP is the best way to accomplish this.
- Fast and accurate order fulfillment – Balancing inventory levels means that orders need to get turned around more quickly than ever. After all, warehouses don’t store inventory: they move it.
- Detailed KPIs – You can use KPIs to keep a real-time pulse on how the business is performing by setting up productivity, operations, customer satisfaction, and financial goals.
- Directed picking – In 2021, businesses need to optimize workflows and eliminate wasted movement to increase fulfillment. Handheld devices can guide the picker on the most efficient path through the warehouse minimizing extra steps and backtracking.
- Ability to track orders – Our inventory management software seamlessly integrates with Sage Intacct, empowering users to automate processes, optimize workflows, and gain real-time visibility into your inventory. Use mobile and barcode technology to capture inventory movement through your business, including shipping and receiving.
- Safety – Warehouse employees were amongst the many first-line workers during COVID-19 and continue to be. Barcode and wireless technology can help improve workers’ safety by providing social distancing and contactless processing.
It’s time for you to increase productivity, worker safety, and throughput by leveraging your technology and taking distribution operations to the next level. ScanForce can move your business into the future with the latest in innovative solutions and unmatched customer support. Contact us today!