ERP distribution software can help companies manage the increasing complexity that comes along with growth.
According to a post on Forbes.com, logistics isn’t impacted in the same way the rest of the operations are when a company experiences growth. “Logistics is an area of business that grows along with your company, but in a different way,” the article says. “Rather than becoming bigger, logistics becomes more complex.”
The article explains that streamlining your business processes will assist you in growth. However, it doesn’t highlight the technology to do that. After streamlining the processes, the next step is to automate those processes as much as possible to allow for efficiencies. ERP distribution software from NetSuite can assist with providing solid record keeping and provide the workflow functionality to streamline the logistics process.
ERP distribution software also can help distributors to calculate proper inventory levels using customer order, forecast and lead times. That information can then be used to minimize stock outages. Tracking inventory turn statistics is critical to know which products are moving fast and which are moving slow.
The Forbes.com post highlights three ways that logistics gets more complicated as companies grow.
- Growth causes complexity to increase exponentially: Software Thinktank, a business management software company, says such tasks as order processing become highly complex when a company expands. It suggests asset management software to assist with warehouse operations.
- Deciding where to warehouse: When inventory outgrows office space, businesses must figure out where to store it. The question is should you outsource warehousing or handle it in-house? The answer depends on a variety of factors, including available space and employees’ abilities. Some companies find it’s easier to pay someone else to store their products, while others prefer to add warehousing to their operations.
- Inventory management will be an issue for companies as the orders that they fill grow. There’s a balance that needs to be met to ensure you have enough stock to handle large orders but not so much that you’re wasting resources.
Source: Forbes.com, May 2013