The problem with surplus inventory

In the manufacturing industry, inventory management can make or break a budget. You need to produce enough units to meet customer demand, otherwise your customers will go elsewhere. If you produce more units than you need, then you have a whole other set of problems. Your customers may be content, but you still have excess units and wasted materials to deal with.  

Dealing with a surplus
What can you do with excess inventory? There are a few options, but none of them are great. Here are a few reasons why:

  • Storing the units could require you to rent additional warehouse space. Otherwise, the accumulating units could take up too much space on your site and get in the way of your operations. 
  • Selling it at a discount could come back to bite you. The products could end up in a secondary market, where they could be competing with yours. 
  • Destroying or dumping the surplus products is a waste of resources. Not only that, but filling up a landfill with your waste can have a negative effect on the environment. 
  • If you keep trying to sell the products despite reduced interest, your sales team is going to grow frustrated about having to sell an unpopular product while, updated models might be rolling out. The demand was down for a reason, so why would you expect them to suddenly start selling again? Also, soon the products will be out of date. 
ERP inventory management software offers many tools to help you plan for customer demand, and deal with surplus issues. ERP inventory management software offers many tools to help you plan for customer demand and deal with surplus issues.

How ERP inventory management software can help
One of the most important components of a manufacturing enterprise resource planning platform is a robust set of inventory management tools. 

  • Demand planning: An ERP system's inventory management tools provides up-to-date information, so your business can produce exactly what is needed, keeping inventory low while meeting demand. 
  • Identifying a surplus immediately: Sometimes, unexpected events reduce demand with little warning. Whether the surplus occurs because the demand for a particular product drops or because of changes in the market, the ERP software will identify it and notify you right away. This immediate reaction gives you more options than the ones mentioned above, such as contacting the customer right away to offer an additional order. 
  • Automated replenishment: Inventory management software can automate many of the processes around your production and distribution channels, streamlining operations and reducing many costs. As demand grows, ERP software orders the ideal quantities of materials to meet it. This automation reduces the number of transactions you have to make, and helps maintain an efficient turnaround between you, your partners and the end users. 

At Accent Software, we work with growing manufacturers to implement Microsoft business software, helping them reduce costs to achieve a competitive advantage. If your legacy system isn't cutting it, contact us to see how a sophisticated ERP program can make a difference. 

Requirements for discrete manufacturing business software

Discrete manufacturing refers to producing finished goods that are easily countable and sortable. There goods are often made from smaller components. Some examples include furniture, electronic equipment, toys and airplanes. As opposed to process-manufactured goods, discrete goods can be identified as individuals, whereas process goods are difficult to break down because they're usually liquids or powders. 

Discrete manufacturing requires separate characteristics in its business manufacturing software. Combining smaller component into a complex finished product can require sophisticated systems to help manage the whole workflow. An ERP software solution that addresses these requirements can help a discrete manufacturer streamline processes and improve the bottom line. 

Customization
While many discrete manufacturers stick with specific plans for their products, some operations offer more customizable goods. These custom goods can be made to order, and to properly track information the ERP software needs to be able to adapt to new custom workflows. 

"An inventory management system is crucial for discrete manufacturing companies."

Quality management
Since discrete products are usually created by combining components, there are additional steps in the process. ERP software must be able to manage quality assurance checks and help track both the components and the finished products. This tracking can include regulatory requirements and safety inspections. 

Inventory management
An inventory management system is crucial for discrete manufacturing companies. Tracking products accurately helps ensure quantity requirements are met and finished products are delivered to clients. This can also include a demand planning extension, which helps ensure the ideal amount of goods are manufactured. 

Identification of basic components 
In a circular economic model, discrete goods can be broken down into their basic components at the end of the product lifecycle. Ideally these components can be used again for new products. An ERP solution for discrete manufacturers should be able to identify basic components in addition to finished products. While not every manufacturer is part of the circular economy, this is a growing trend. 

At Accent Software, we help growing businesses learn and implement Microsoft Dynamics NAV, a flexible and customizable ERP software that supports discrete and process manufacturers. We understand the importance of smart software for manufacturing to streamline workflows, boost productivity and foster innovation. If your legacy system isn't cutting it, contact our team to see the difference a modern business management software solution can make.

Business management software for process manufacturing

Process manufacturing is the production of goods in bulk quantities, such as chemicals, paints, food and beverages. These goods are not individually countable. This is opposed to discrete manufacturing, which involves the production of countable goods such as machine parts, cars or electronics.

Goods manufactured through process manufacturing usually can't easily be broken down into smaller components like their discrete counterparts. Process manufacturing's characteristics give it some unique requirements in a business management software solution. It takes more than just any run of the mill inventory management system to handle process goods effectively. 

Units of measurement
As materials developed through process manufacturing are not easily broken down, the ERP system needs to be able to adapt to more flexible units of measurements. Powders and liquids require decimals places in transactions, as well as a wide range or units of measurement.

To meet regulations from organizations like the Food and Drug Administration, every single drop or grain needs to be recorded and measured. That means the ERP software needs to be up to the task of working with very small units of measurement. 

"Every single drop or grain needs to be recorded and measured."

Quality testing
Process manufacturing ERP needs to be able to record the results of the many rigorous tests that goods go through before they're shipped off to clients. An ERP system needs to have its own module for quality standards and test results. This is especially crucial for food and drug materials. 

Special characteristics
In addition to units of measurement, some materials may also have special characteristics that more traditional ERP software may not track. Characteristics such as strength and potency, shelf life or expiration date and quality monitoring for regulatory requirements need to be identified. 

An ability to trace goods
Whether its food products or pharmaceuticals, goods produced through process manufacturing usually have to be tracked after they're shipped to clients. These requirements are usually connected with their environment, their specific batch, or their test results. Tracing process goods requires flexibility and customization in an ERP solution. 

Microsoft Dynamics NAV is not just your run of the mill business management software. It's the ideal tool for process manufacturing, giving the user unprecedented ability to streamline workflow and track goods. Dynamic NAV's customization helps enterprises adapt to the unusual requirements for process goods. That's why at Accent Software, we help growing businesses learn and implement this software. We understand the importance of smart software for manufacturing to boost productivity and foster innovation. If your legacy system isn't cutting it, contact us to see the difference a modern business management software solution can make. 

The CFO’s guide to ERP

As your business grows, managing inventory, finances and cost accounting can become very complicated. Enterprise resource planning software is an effective way of centralizing and managing important data, helping to improve efficiency as the list of clients and personnel grows. Business accounting systems are essential tools that help your accounting and finance departments track progress while meeting any regulations. It is wise for a CFO of a growing company to investigate the benefits of ERP software, as it's a major improvement from spreadsheets or legacy software. 

More businesses are adopting ERP business management software systems. This software helps in every part of a business's operations, including financials. Every CFO should be taking a hard look at his or her legacy system, because ERP software has so much more to offer. 

Revenue growth
Business management software such as ERP systems allow a CFO to access real-time financial data. This real-time information is crucial to the decision-making process. A CFO that has the most up-to-date information can see trends forming as they develop, and can take educated risks when necessary. This information also helps to strengthen forecasting, while monitoring expenditures. 

Regulatory changes
Financial record-keeping can suffer when departments maintain silos. ERP software grants CFOs full access to every department, allowing them to monitor accounting practices at every level. ERP systems also help accounting teams keep track of new standards and procedures so they can always remain compliant. 

Job costing
Business accounting systems that can accurately track all of the costs incurred will help the manufacturing company operate more efficiently. At the heart of the matter is the ability to report costs and returns on investment, and ERP job costing solutions make this easier. 

Data consolidation
Manufacturing accounting software helps to consolidate data from every corner of the business. This gives the CFO a big picture view of any new trends in the industry, as well as the overall health of the company. 

Automation
One of the major benefits of an ERP system is the automation of repetitive tasks. Many invoices that would normally be completed manually can be completed automatically through the software. This benefits the team on many fronts because workers are freed up for more pressing work. The automation also reduces the chances of human error, which improves data integrity. 

At Accent Software, we work with growing manufacturers to implement Microsoft business software, helping them reduce costs to achieve a competitive advantage. This software offers vast improvements over legacy systems, helping to boost efficiency, transparency and data integrity. If your legacy system isn't cutting it, contact us to see how a sophisticated ERP program can make a difference

Does your inventory management software prepare you for customer demand?

The big question for manufacturers has always been: how many units is too many? Manufacturers need to be able to respond quickly to meet customer demand. If they make too many products, they'll waste money and storage space, filling a warehouse with unwanted products. If they don't make enough they could have angry customers who are waiting for their orders.

Enterprise resource planning software lets manufactures predict customer behavior based on a number of factors. This improved demand planning cuts down on wasted inventory and helps establish seamless delivery. The ERP Software Blog notes that demand planning can often be seen as "voodoo magic," but in fact there is a science behind it and savvy ERP users can harness it. The right ERP software can optimize demand planning processes and help your enterprise forecast for customer needs.

ERP inventory management software includes essential data such as historical sales figures, business constraints, weather, political events, vendor forecasts and any seasonal trends to give you the full supply chain picture. Are there new laws that could stifle your business? Are some of your products only ordered during the summer? What trends are affecting your suppliers? This is not a guessing game, these are all important types of data that you can use to predict demand. ERP software can take this data into consideration and help you manage your forecast. 

At Accent Software, we know that planning for demand and preparing your inventory is crucial. This is why we work with Microsoft Dynamics NAV. Contact us to learn more about how we can help implement powerful inventory management software for your manufacturing enterprise.

Demand planning with Microsoft Dynamics NAV

One of the most important benefits of inventory management software is the ability to accurately schedule for customer demand. If you're unable to meet your client's volume requirements for a new promotion or product, you will lose business. A manufacturer that can adapt quickly and plan well for its customers' needs will thrive. Enterprise resource planning solutions help small to medium manufacturers to make these smart forecasting decisions.

Accuracy

According to TechTarget, proper demand planning through ERP tools can "guide users to improve the accuracy of revenue forecasts, align inventory levels with peaks and troughs in demand and enhance profitability."  ERP software lets manufactures anticipate customer behavior based on a number of factors, thus improving the full supply chain. 

Proper demand planning helps you manage your supply chain. Proper demand planning helps you manage your supply chain.

The ERP Software Blog notes that demand can often seem ineffective in the supply chain, but the right ERP software can optimize demand planning and help you properly forecast for customer needs. ERP software inputs essential data such as historical sales trends, supplier forecasts, seasonal trends and business constraints to give you the full picture. 

Flexibility

PlannerOne software for Microsoft Dynamics NAV lets manufacturers accommodate customer needs with powerful scheduling systems that are flexible and customizable. This intuitive and user-friendly tool lets Dynamics NAV users fully visualize the entire planning process.Allowing users to implement scheduling systems to fit customer demand is what makes Dynamics NAV the best ERP solution for small to medium manufacturers.

Accent Software understands the importance of accurate demand planning in the manufacturing industry. This is why we work with Microsoft Dynamics NAV. Contact us to learn more about how we can help implement powerful demand planning solutions for your enterprise. 

Automate tasks with ERP software

At a small to medium-sized enterprise, every employee has to fill multiple roles. Fulfilling timely, accurate orders can mean the difference between success or failure. An inventory management system and an accounting management system, both provided by electronic resource planning software, allow an SMB to automate many time-consuming tasks so employees can focus on providing service to clients. 

Processing orders
The business accounting system generates and processes purchase orders and automatically, so your materials come from vendors promptly and you can fulfill customer orders quickly and accurately. Tom Miller of ERP Focus notes that ERP software allows you to collect a customer's order through an online portal and generate it in the system automatically, cutting down on processing time. 

Invoicing
As an enterprise grows, creating and sending invoices can become extremely time-consuming. ERP manufacturing accounting software can automate the invoicing process, reducing the time it takes to generate and process invoices.This frees up time and resources to focus on more pressing concerns. Improving the invoicing process means issuing payments faster to keep vendors happy and increases cash flow. 

ERP software automates many everyday tasks. ERP software automates many everyday tasks.

Production
Implementing an ERP system applies up to date industry best practices and optimizes your workflow by automating many tasks. This helps eliminate many inefficiencies that lead to idle machines and other types of waste. 

Human Resources
ERP business management software helps HR departments automate everything from generating reports and calculating deductions to updating employee records. ERP systems centralize all of the important data, so HR teams don't have to waste time filling out paperwork with redundant information.

At Accent Software, we can help your ERP implementation go as smoothly as possible, so you can be well on your way to running a more efficient operation. We're proud Microsoft partners, and we help SMBs use Microsoft Dynamics NAV for their business intelligence and automation. Contact us to learn more about the many ways our team of experts can help.

Your inventory management checklist

Managing inventory well is crucial in the manufacturing industry. If you can't keep up with demand, you'll be working overtime to make your customers happy. If you overshoot and make more products than necessary, you'll have wasted resources sitting in the warehouse. Understanding these best practices and implementing inventory management software will keep your enterprise on the right track. 

Forecasting
The ERP Software Blog identifies important factors to consider when predicting your demand. Learn what trends are affecting your suppliers, since they're directly connected to your product. Consider seasonal factors: do you sell more products at a certain time of year? Are there lulls in sales at other times? Review historical sales activity, for a 2- to 5-year period. Also, remember any constraints such as storage space that could limit your output. 

Automating
The right inventory management system will let you automate many tasks. This will eliminate human error, speed up processes and free your team for more important work. TLC Group points out that the automation tools provided by an enterprise resource planning (ERP) system lets your team keep track of inventory in real-time, avoid overstock and prepare for any unexpected events. 

Automation can help your inventory management team run more efficiently. Automation can help your inventory management team run more efficiently.

Changing models
Inventory management is not a one size fits all type of solution. If it's difficult to keep up with certain products, or if your current model is causing inefficiencies, you could consider different inventory management models. The inventory management module of an ERP system lets you review your entire supply chain to help you develop the right solution for your vendors, your team and your customers. 

The right system can streamline processes to make sure your operation is producing the right amount of inventory for your needs. Accent Software is a full-service software consulting company that can help you implement the right system to boost your efficiency. We have industry-specific add-ons that are tailored to the needs of your enterprise. Contact us to learn more.

3 signs you need ERP for manufacturing

Manufacturers have been using enterprise resource planning (ERP) software for the past 25 years, according to Mark Humphlett of Diginomica. ERP systems help manufacturing companies manage the entire supply chain and integrate it with accounting, inventory, human resources and every other department. If your company is not using ERP software, you may be dealing with some of these issues highlighted below. 

Defective goods
If a finished product does not meet quality standards, you have to spend valuable time and resources repairing or replacing the item. Implementing an ERP system also implements up to date industry best practices, optimizing your workflow and eliminating waste. An ERP system can also help eliminate problems in your workflow that lead to idle machines, another type of waste. 

Business management software can optimize your workflow. Business management software can optimize your workflow.

Inventory problems
Are you producing too much, with an overflowing warehouse that's exceeded customer demand? Or are you having trouble keeping up with customer orders? Whether you have too much inventory or not enough, the right manufacturing software can make sure your production matches demand, and help you find the balance between too much inventory and too little. 

Missing deadlines
In order to retain customers, it's crucial for SMBs to ship their products on time. An ERP system such as Microsoft Dynamics NAV provides the solutions that let manufacturers spend less time on administrative tasks so they can focus on optimizing shipments and delivering to customers. Using mobile apps provided by an ERP system, you can connect every step from customer engagement to fulfillment. Manufacturing software systems allow every department to share accurate data in real-time. 

Are you experiencing any of these issues? At Accent Software, we understand that manufacturing enterprises need to be agile and innovative. We can deploy Microsoft Dynamics NAV, train your team, and offer ongoing support tailored to your enterprise's unique needs. 

4 reasons inventory managers love ERP software

Any enterprise that moves inventory needs to manage its supply chain logistics efficiently to be successful. Inventory management software can streamline processes, giving inventory management more relevant data and greater control over the full supply chain.  

Manage every channel
Retail no longer moves inventory through a single channel. While inventory was traditionally a "back office" function, it has become far more consumer-facing, as noted by Curt Barry of Multichannel Merchant. Serving these omnichannel shoppers is a heavy task, and an ERP system can connect inventory management with every distribution channel to optimize fulfillment and improve the overall customer experience, whether it's through a physical store front or an e-commerce site. 

Automate invoicing
As a small business grows, filling out invoices can become increasingly more time-consuming, according to Orgad Gratch of Business.com. ERP software can reduce the time it takes an inventory team to generate and process invoices, freeing up time and resources for more pressing concerns. Improving the invoicing process means issuing payments faster to keep vendors happy, and processing incoming invoices faster increases working capital. 

ERP systems can organize the entire supply chain. ERP systems can organize the entire supply chain.

Connect the chain
Managing inventory means juggling a long list of tasks throughout the process, from acquiring raw materials, to storing goods, to shipping products off to customers. The right inventory management system can centralize all of these tasks to ensure a smooth process and minimal spending.  

Boost the bottom line
Streamlining processes, controlling quality, and optimizing shipping all make for happier customers and less waste. Any enterprise runs a risk of some kind of disruption, but putting a powerful system in place can mitigate risk and keep things moving in any situation. 

Could your inventory management use an upgrade? Accent Software is a full-service software consulting company that can guide you through the Microsoft Dynamics NAV adoption process. We have industry-specific add-ons to Dynamics NAV that are tailored to the needs of your enterprise. Contact us to learn more.