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Counting SKUs

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Do you happen to know how many SKUs you managed last year or how many you are tracking this year?  According to a study by Motorola Solutions discussed in “Supply Chain News: Where are Warehouses and Distribution Centers Headed? Warehousing 2018 Predictions,” posted on SCDigest.com, over 50% of the businesses surveyed anticipated an increase in the number of SKUs they will carry.  An increase in inventory requires space in your warehouse, room in your warehouse management software solution, and could lead to other significant warehouse changes.  Are you ready to count more SKUs?

If managing inventory is already a headache, imagine what chaos you could have as product lines expand.  Whether you are planning growth for next year or the next five years, it may be time to get prepared with a robust enterprise resource planning (ERP) solution and appropriate inventory solutions, such as the Economic Order Manager application offered by RockySoft.  This solution will provide the control and insight you need to manage a growing product line, as well as monitor the profitability of your operations.

Even if you could stock a larger volume of inventory on your shelves, that doesn’t mean it’s a good idea.  Some items cost more to carry and without real-time management, you risk stocking up on items that are becoming obsolete, which costs even more.  The Economic Order Manager is a powerful tool for the management team and procurement planners to analyze inventory situations, such as the cost for ordering and storing inventory.  You can look at historical and actual inventory levels, change variables, and determine whether the forecasted results may meet strategic or budgetary goals.  You can also create a weighing system to monitor certain product variables such as hit frequency, sales, profit, quantity sold, or other qualifiers.  Use this data to automatically update inventory ranking by SKU, daily, weekly, or monthly.  These measurements can improve fill rates for classes of inventory, help you meet service levels and product availability goals, reduce the risk for being stuck with obsolete inventory, and protect your business from costs associated with storing excess or old inventory.

Maintaining large amounts of inventory, in single or multiple warehouses, can be a challenge.  Be prepared for counting more SKUs by implementing the right technology that can not only help you control inventory, but find the profitability in it.  Contact the experts at RockySoft for more information about finding the technology that will make it easier to count more SKUs.

By Jeffrey Porter with RockySoft, demand planning ISV for Microsoft Dynamics ERP

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