Inventory management is critical when it comes to running a successful business. Your company’s efficiency level in controlling stock levels can significantly impact customer satisfaction, operational efficiency, and overall profitability. Microsoft Dynamics 365 offers robust enterprise resource planning (ERP) capabilities. Businesses can harness its comprehensive suite of tools to streamline and optimize their inventory processes. We’ll look at various ways organizations can leverage Dynamics 365 for inventory management.
1. Centralize Inventory Tracking
The biggest advantage organizations gain from using Dynamics 365 inventory management capabilities is being able to handle inventory tracking from one location. Dynamics 365 gives you a complete view of all inventory data, including:
- Item details
- Quantities
- Locations
- Transaction history
Businesses have a real-time view of inventory levels. That makes it easier to monitor stock quantities and locations accurately. Dynamics 365 inventory visibility is essential to helping companies make informed decisions regarding reorder points, optimizing inventory turnover, and preventing stockouts.
Centralizing your inventory helps ensure data consistency across all organizational departments and locations. That means fewer errors because of duplication of data or discrepancies in stock levels, which allows companies to obtain more accurate financial reporting.
Dynamics 365 also helps businesses with multiple warehouses or retail outlets manage inventory efficiently at every location. Employees can track the movement of items between different locations, transfer stock, and maintain accurate stock levels at every site.
2. Establish Effective Demand Forecasting and Replenishment
One of the keys to effective inventory management is balancing stock levels with customer demand. Dynamics 365 provides robust demand forecasting and replenishment capabilities, helping organizations achieve the right balance.
Dynamics 365 uses machine learning algorithms to analyze historical sales data and market trends to generate more accurate demand forecasts. That helps businesses anticipate customer demand and adjust inventory levels as needed.
Organizations can establish automated replenishment rules based on criteria like:
- Reorder points
- Safety stock levels
- Lead times
If company inventory falls below those thresholds, Dynamics 365 triggers automatic purchase or production orders. That allows businesses to maintain optimal stock levels without requiring human intervention.
Leveraging demand forecasting and automatic replenishment helps companies minimize the risk of overstocking – excessive inventory – and stockouts, insufficient inventory. That helps businesses achieve higher cost savings, lower carrying costs, and increase customer satisfaction.
3. Streamline Purchase and Sales Orders
Dynamics 365 streamlines the creation and processing of purchase and sales orders, which makes inventory management processes more efficient. Businesses can start by automating purchase orders based on essential factors. That reduces the need for manual entry and ensures prompt order generation to replenish inventory.
Organizations can also track purchase and sales order statuses in real time. Users can also use Dynamics 365 inventory management processes to monitor order progress, shipment updates, and delivery confirmations. Companies gain better visibility into the overall supply chain.
Dynamics 365 also lets you create customized purchase and sales order templates. That flexibility ensures that orders align with an organization’s branding and operational processes.
4. Perform Inventory Valuation and Cost Control
Create Dynamics 365 inventory value reports that detail your physical inventory, financial quantities, and overall totals. The platform supports your need for accurate inventory valuation by providing tools that help you effectively manage inventory costs.
For example, Dynamics 365 supports inventory valuation methods like First-In, First-Out (FIFO), and Last-In, Last-Out (LIFO). The system lets you choose the best methods for your business and accounting practices.
You can also use Dynamics 365 inventory management to allocate costs, like shipping fees, to specific inventory items or batches to ensure you reflect the actual cost of every item in your financial records. Use Dynamics 365’s comprehensive financial reporting capabilities to generate reports essential to strategic decision-making and financial planning, including:
- Inventory valuation
- Cost of goods sold (COGS)
- Profitability
5. Integrate Sales Channels and E-Commerce
Modern companies often maintain multiple sales channels, including brick-and-mortar stores and e-commerce platforms. Dynamics 365 lets you seamlessly integrate the unique inventory management needs of each.
For example, you can sync inventory levels across every sales channel. That way, customers get accurate product availability information regardless of their chosen outlet. Companies avoid overselling, which can lead to customer dissatisfaction. If a sale gets made through one channel, Dynamics 365 performs a real-time update to inventory levels. That way, associates do not need to make manual updates, lowering the risk of selling out-of-stock items.
Dynamics 365 integrates with e-commerce platforms like Magento or Shopify, streamlining online sales and inventory handling. Any order placed online gets automatically processed in the system, and inventory levels are updated.
6. Execute Quality Control and Compliance
Product control is critical to many industries. Dynamics 365 accounts for those needs by offering tools to help organizations maintain high standards and meet regulatory requirements. For example, you can set up batch and serial number tracking, which is essential to industries like food, electronics, and pharmaceuticals. That lets companies track products back to their source, which makes it easier to identify and deal with quality issues or recalls.
Businesses can also manage compliance documentation, including:
- Certification of analysis (COAs)
- Safety data sheets (SDS)
- Regulatory records
You can ensure that your organization abides by industry-specific compliance standards. That reassures customers of your commitment to quality and improves your brand reputation.
7. Enable Mobile Accessibility, Remote Management, and Reporting
Company employees can manage Dynamics 365 inventory management tasks using mobile apps. That means remote workers, including those in the field, can perform essential functions like stock counts, order approvals, and inventory adjustments from anywhere.
Users can also build customized reports and dashboards that offer insights into essential information like inventory turnover rates, aging inventory, and slow-moving items. That helps businesses make data-driven decisions and keep inventory at optimized levels. Dynamics 365 stores historical inventory data, allowing organizations to analyze past trends and patterns to inform future inventory strategies.
Revolutionize Your Inventory Processes
Internet eBusiness Solutions (IES) understands the importance of fully overseeing your inventory processes. We can help you find solutions to transform your work processes and make things easier for the workforce. Learn more about how our services work by contacting an IES specialist.
