Organizations are known to maintain large number of stocks. Stock could be anything. It could be machinery and equipment, raw materials to be used for production, manufactured products ready for distribution, non-movable goods or any other kind. In organizations that have large inflow and outflow of stocks, it is very imperative to manage stocks.
Managing stock can be an intrinsic task and would pertain to efficient management of materials on the basis of value and quantity. It would also comprise of all external and internal movement of stock within and outside the organization and aspects that relate to strategizing, recording and maintaining the relevant documents for the stock. The key to effectively managing stock eventually boils down to having the appropriate stock in the precise quantity and form, in the exact place at the exact time and at a cost that is suitable. However, stock management can be quite a challenge.
Issues related to effective stock management would pertain to keeping a track of the stock register, monitoring stock that is non-moving, purchase planning, production planning, issuing stock on the basis of ‘first in first out’ (FIFO), identifying stock that are ready to go and those that are rejected, capacity planning of stock in the warehouse and stock value report. Managing stock in an effective manner is significant for diverse departments within an organization as it is critically associated with asset management, price forecasting, stock space, carrying costs, stock on hand and several others.
The problems above outlined can be easily resolved with the help of software that enable organizations to effectively manage their stock. ERP software can be effectively utilized to provide a code or name to reference each warehouse or plant location. For instance in Plant - 1
At the time when stock is received within a warehouse or plant, the ERP software can allow the organization to allocate a unique lot number to Bin, Pallet etc. This will be considered as a running number that will eventually help the organization to issue stock on the basis of FIFO. The lot number will also include details pertaining to when the stock is received and the supplier from which it has been received. These details can be instrumental in helping the organization to identify any damaged goods following which the supplier can be tracked and claimed for the same.
The ERP software also facilitates mapping of the stock and its lot which renders it easy to keep a track of the stock and retrieve it from the location when it is being issued. Further, it also facilitates mapping of Barcodes and RFIDs to the lot. As a result of this feature, the scope for manual error is reduced while ensuring 99.99% accuracy on stock that is being issued with the help of FIFO. As far as the production area is concerned, the use of ERP software can enable the organization to allocate a unique lot number following the production of parts. The parts utilized for the production of finished goods (FG) or semi-finished goods (SFG) are then mapped to the lot number that is newly assigned. Subsequently, using the lot number, the parts for the finished goods are invoiced and dispatch of materials occurs through FIFO. On the basis of the data existing in the system, it is possible to retrieve the exact stock available in the plant.
By gathering data relating to incoming materials and its issuance, ERP software can also enable the organization to segregate and suggest materials that are;
The ERP software also facilitates the organization to electronically maintain a stock register which will help monitor the quantity and value of live stock in the plant and the warehouse. Further, on the basis of the stock data material, a plan for procurement and schedule for delivery to suppliers can be easily created. It also facilitates the organization to ensure that the customer plan can be realized without any bottlenecks on the basis of stock available in every area.
An effective stock management system is endowed with many critical features. It facilitates monitoring of the customer demand changes while allowing input costs to be tracked. This leads to an increase in purchase efficiency other than providing an update about the stocks. In addition, it should also facilitate the organization to update and execute structures for special pricing. Further, an effective stock management system will also help the organization to keep track of accounts, execute banking functions, update profile information, enhance transaction speed and augment productivity. Eventually, the organization would be able to augment their revenues.
Agaram InfoTech offers the perfect solution with regards to effective stock management. Irrespective of the industry, ERP software solutions provided by Agaram presents organizations with critical information related to level of stock, raw material values and finished goods in real time. Another feature of ERP software by Agaram is that it allows the organization to generate a number of reports while also enabling the customization of existing reports in several ways. The reports thus generated can be saved in the system and can be accessed anytime. This particular feature that facilitates the generation of extensive reports not just presents an average costs but it provides accurate totals. Further, each individual data can be crunched to reveal additional extensive detail. On the whole, ERP software solutions provided by Agaram can prove to be the answer to all your stock management requirements.