A warehousing and distribution process is never without a couple of inventory problems. And while they may seem inevitable, inventory management issues can have a huge impact on your business.

According to UpKeep, businesses spend an average of 25% to 35%  of their budget on inventory. If you add up lost time, money, and effort from mismanaging inventory, it could be a terrifying sum.

So, how do you reduce these costs? Firstly, you’ve got to pinpoint the problems in your inventory process. Secondly, you seek solutions.

Multiple problems, one centralized solution

Among the many solutions out there, an ERP system is a technology that could transform your inventory management – ERP systems like MYOB Advanced.

The best part about it is that it solves more than just one issue at a time because it is an end-to-end solution, a centralized platform.

Whether the pain points of your inventory process are at the purchasing stage or along the distribution stage, MYOB Advanced provides better visibility of your entire operations.

With features that organize data, automate tasks, and track output, you’re bound to see an improvement in your inventory management.

Common Inventory Problems & Solutions from MYOB Advanced

So you’re probably wondering which problems MYOB Advanced addresses and how it solves them.

Below, we’re listing down some of the most common issues in the stock management and the solutions provided by this ERP system.

Challenge #1, #2, and #3: Overstocking, Understocking, and Incorrect Orders

Managing the amount of inventory is a tough balancing act because a business can buy too much of a product or end up out of stock too soon.

On top of that, there are the occasional errors like ordering the wrong amount of stocks or the wrong type of goods.

Solution: Purchase Order Automation

Reduce the risk of errors, overstocking, or understocking by automating your purchase orders.

The sytem automatically creates purchase orders based on your stock levels and replenishment algorithms to make re-ordering easy. These orders are then sent directly to the vendor.

Challenge #4: Lost Inventory

Having trouble locating your inventory? Searching for items can take up much of your employees’ time and cost your business days of productivity.

Missing items can also cause delays in deliveries. Lastly, incorrectly placed items can also be sent out to buyers. Both of these situations can negatively affect customer satisfaction.

Solution: Inventory Bin or Location Control

Gain better control over your inventory by organizing it according to clear specifications such as location, types of transaction allowed, and much more.

Challenge #5: Stock Waste

Keeping a healthy inventory can be hard, especially when demand falls. Without systems that prioritize older stocks, your warehouses can be filled with spoiled or damaged goods and deadstock.

Solution: Expiration Date Tracking

By keeping a closer eye on the expiration dates of your stock items, businesses can reduce their inventory waste. The system automatically issues the earliest expiration dates and removes expired stocks from your available inventory.

These are just a few of the features the system has to offer. For a more complete description of its features, you can read our MYOB Advanced Inventory Management overview.

Transform inventory management with MYOB Advanced

Want to know more about the inventory management module of MYOB Advanced? Check out this introduction to the module:

If you have more questions, just contact our team. Already a MYOB user? We also provide MYOB Advanced support.