Having enough stock on hand while avoiding overages is a tough walk down a never-ending tightrope; tilt too much in either direction and you can quickly lose customers and/or working capital. As a midmarket distributor, manufacturer, or retailer, inventory management plays a major role in the success of your business, and many companies are feeling the pressure to make changes for improved results. This need for reduced inventory carrying costs is made evident in recent research from Aberdeen Group who found that 60% of best-in-class companies report the need to reduce inventory carrying costs (share this stat!). Furthermore, the report found that 42% of best-in-class companies are looking for ways to increase customer satisfaction. Improving inventory management is the answer to both of these problems.
On the surface inventory management seems simple, it’s a matter of answering a few questions about the future; what items should you stock? How many? When should you order more? But when answering these questions across numerous items, locations, and suppliers gets a lot more complicated.
Because events on the ground fluctuate so much, companies periodically find themselves without critical items they need and overstocked with others they really don’t. When stock-outs happen customers get frustrated and may leave you for a competitor; and when you have overages, working capital gets tied up in carrying costs. The fact is that basic inventory management software does not give you what you need to find the balance between too much and not enough, and it cannot help you predict what’s going to happen in the future.
Sage Inventory Advisor is a secure, cloud-based subscription service that helps you reduce stock outs, excess inventory, and working capital. It’s affordable, fast to implement, and connects directly to your Sage ERP solution. Inventory Advisor does a lot more than just track the inventory you have on hand and alert you when it’s getting low. Sage Inventory Advisor is more than just an inventory management enhancement for Sage ERP, it is:
- A diagnostic tool that identifies excess inventory, potential lost sales, and surplus orders
- An analytics tool that extracts actionable data from your historical sales, purchasing, and supply chain data
- A forecasting tool that makes item-by-item suggestions about planning optimal replenishment, implementing an ordering schedule, and improving fill rates
Benefits of Sage Inventory Advisor:
•Reduce excess inventory by 10%-15% and improve inventory turns
•Reduce working capital and free up 15%-20% of cash tied into inventory
•Improve fill rates by 2%-10% and eliminate stock-outs
• Reduce time spent on forecasting by as much as 50%
Want to learn more about how Sage Inventory Advisor can help you improve customer satisfaction, reduce inventory carrying costs, and increase overall profits? Read more here or contact us and we’d be happy to answer your questions.