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Employee conducts inventory management check in for manufacturer or distributor.
Why Manufacturers and Distributors Need Automated Inventory Management

From the beginning, inventory management has been a priority for manufacturers and distributors. Having the ability to accurately account for your inventory, understand when to restock, and manage distribution doesn’t come without its own unique set of challenges. 

Up until the digital age, there weren’t many alternatives to manual inventory management systems. Usually done with pencil and paper, employees would be assigned to take a physical count of each item in stock by hand before entering it all into a spreadsheet. This process is labor-intensive, time-consuming, and at risk of data loss and error. Fortunately, automated inventory management has changed everything. 

Here are three reasons why your manufacturing or distribution business would benefit from automated inventory management:

Location Management

Whether you’re a manufacturer or a distributor, products and materials must be tracked during every step of your workflow. Critical processes like bin control and lot/serial control directly impact the time and labor required to locate specific items within your inventory. Automated inventory management connects the dots. It gives you a precise understanding of where your inventory is at any step in any process. 

Tools like barcode tracking systems and fully automated data collection software provide real-time visibility to all departments. This significantly reduces time and errors wasted manually tracking, transferring, and recalling data between separate databases. Manufacturers can quickly determine the location of not only finished products but individual ingredients and materials from storage and assembly all the way through shipping and final delivery. 

Scalability

The scalability of any business depends on the limitations of its systems. Manual inventory management systems become exponentially more complex and labor-intensive as a manufacturing or distribution business grows. Taking hours to gather and analyze data from multiple spreadsheets hosted in separate systems is not scaleable. Integrating inventory management software into a fully automated warehouse management system enables you to collect information accurately and rapidly. This robust infrastructure leads to better business decisions and increased profitability.

Customer Service

As your business grows, so will the demands on your customer service department. Customer satisfaction is directly impacted by the time required to address a concern, complaint, or inquiry. Losing customers over inventory issues is unacceptable. Automated inventory management systems offer real-time visibility between production and customer service departments. No more running after Excel spreadsheets and settling for longer lead times just to answer a customer question. Your team will now have the ability to accurately quote orders, delivery windows, and anything else that pertains to the product or material in question. 


Ready to take the next step but don’t know where to start? Let our expert senior consultants help you define and implement the right inventory management solution for your business.

At Attivo, we understand the inventory management challenges of manufacturing and distribution businesses across most industries. Our experienced team can help your company evaluate its processes and implement an integrated ERP system tailored to meet its needs. If you’re tired of wasting time, money, and effort on manual inventory management systems, transitioning to fully integrated ERP software may be the right solution for you. 

We have helped countless organizations just like yours reach their goals year after year. If you have questions about implementing ERP software like SAP Business One, contact us online to schedule a complimentary analysis or give us a call at 877-428-8486.