Inventory Management in SAP Business One
Good inventory management can make the difference between profit or loss for your business. Especially in times of recession, it is wise to be keen on inventory and keep it as small as possible without having problems with delivery. Inventory Management in SAP Business One helps you do just that.
As a buyer, you typically have two potential problems: you have too much in stock (and that costs money) or too little (causing orders to be delivered late and that costs customer satisfaction).
The dashboard under Inventory Management therefore gives you instant insight into the real-time situation in your warehouse. Three indicators provide clarity:
- On-time delivery rate: What percentage of your orders arrive on time?
- Inventory Value: How much is your total inventory worth in euros?
- Inventory turn-over: On average, how fast do your products sell?
Want it in more detail? Click on the Inventory Management report and see for each product how many items you are above or just below the desired inventory count.
How does Inventory Management work in SAP Business One?
Suppose you have 9 products in stock, but these products are selling hard. Then you can manually set the minimum number of products you want to have in stock to, say, 20. You will then receive a notification when your stock is in danger of falling below 20 products, so you can place a new purchase order.
Too much manual work? Then SAP Business One helps you plan and forecast required purchase orders.
You can view a forecast in the MRP module that lets you forecast how many orders will come in for each product in the coming year based on past data. You can set how far back SAP Business One should look in doing this.
Checking the forecast
Moreover, it is possible to retroactively check the extent to which the incoming orders of recent times match the forecast that SAP Business One would have issued if you had requested it. In this way, you can properly assess how valuable the forecast is.
The forecast obviously includes not only the expected orders, but also the orders already placed.
Purchasing from the system
Want to make purchases based on the forecast? With the press of a button, you are in the Order Recommendations menu. Here you can see what SAP Business One recommends you to purchase. However: you can also ignore these recommandations or adjust them as you see fit.
If the suppliers are linked to the system, you can then order directly from the system.
Want to know more about this SAP Business One module? Contact one of our consultants.
