Inventory optimisation : for cutting costs?


Are inventory costs burdening your business currently? Is it important to control inventory in a business? If so, take a look at some of the explanations if a company does not implement Inventory Optimization:


Cash flow issues: A lot of capital and costs are incurred in purchasing raw materials and products for sale. If you buy excess raw materials than you need, you cannot manage that capital or costs into other business activities that can produce other, perhaps faster, profits. This can of course lead to overstocking.


Wastage / Dead Stock: Wastage and dead stock are the things that are most avoided in inventory management. This causes waste. Dead Stock is a situation where there is an item/stock that is not sold. This problem certainly increases costs in terms of inventory and also causes company losses.


Overhead Costs: Overhead costs are a term used to refer to unexpected expenses. For this reason, you need to take the right steps to control overhead costs in your company.


Inventory optimization is a must


The development of a business from time to time certainly increases, as does the increasing number of product types, quantities and prices. So the problems faced by companies are of course also increasingly complex. Company management is also required to take action so that business problems can be minimized as best as possible, one of which is inventory optimization: for cost reduction. Yes, Inventory Optimization is a necessity in managing company business processes. Why is that ?

Because inventory optimization can reduce the costs incurred by a company. With cost reduction, it makes it easy to determine strategies to obtain maximum profit.


Investing in ERP is the solution


Inventory optimization – enabled by technologies such as Enterprise Resource Planning (ERP) solutions – gives you forward-looking thinking, in terms of accuracy, availability and stock levels on hand.

Because ERP solutions connect operational work processes, such as inventory with financial management and analytics processes in an integrated and real time manner. The ERP system also makes it easier to manage cash flow and implement inventory optimization strategies. ERP systems certainly bring many benefits in Inventory Management.

Consumers and buyers not only want choice and reliable delivery, they want accurate details about products and delivery/movement processes to ensure quality, safety, and maximize a product's shelf life.

Dengan solusi ERP manajemen inventaris modern Anda dapat melakukan :


  • Manage stock of goods with various cost models


  • Uses a variety of measurement units


  • Manage stock in various different warehouses with Bin Location


  • Divide each warehouse into various zones


  • Allocation of places, optimization of stock movements


  • Reduces repetitive retrieval processes


  • Record receipt and release of goods


  • Easily track stock locations and movements


  • Real time synchronization of goods receipts with inventory amounts


  • Predict and plan purchasing needs


  • Makes it easier and reduces time in Good Issue


  • So that the delivery process is on time


  • And improve customer service and trust


Inventory Optimization with an ERP system is the "key to success"


SAP Business One is an application solution that connects all important processes in your company – from accounting and customer service (CRM) to goods supply and logistics.

With SAP Business One you can easily monitor stock amounts, track movements in real time, update and check stock in real time and manage prices on a standard or special basis (special price). You can also apply discounts based on item quantity, total cash purchases, and customer discounts.

The following is an explanation of Inventory optimization: for cutting costs. Check out this interesting article about other features in SAP Business One. Stay Tuned