A: Inventory management system typically includes forecasting and replenishment modules. Forecasting helps you balance target service level or expected demand with inventories kept in stock and incoming supplies. Replenishment helps determine the safety stock levels that are needed at points along the distribution chain to satisfy orders at a given fill rate. A subset known as inventory optimization software employs complex algorithms to recommend what to stock and in which quantities for meeting demand across the entire supply chain or at a specific location.

Inventory management software is available standalone or in ERP and supply chain management (SCM) suites. However, not all solutions includes inventory optimization and product life-cycle tracking which are key components for successful inventory management.

A: A warehouse management system (WMS) primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, and fulfillment. It controls and optimizes the movement, storage, and tracking of inventory in and around a warehouse. In contrast, inventory management software optimizes what products to keep in stock and in which quantities. Inventory management systems optimize the safety stock, reordering points and the economic order quantities (EOQ) of inventory to ensure that future demand can be meet according to plan.

A: There are very few projects that can increase profitability as much as inventory management in companies where the inventory or product flow is the core business.

A: Integration, data quality, and training are usually areas that require attention.

Inventory management system must be integrated into existing ERP systems, often at great expense. Evaluate different system provider’s capabilities to integrate or transfer data between your ERP and the inventory management solutions. Often an implementation project takes 3 to 6 month but with iWebSquare, you can get started with a simple Excel import and export data transfer. We have you up and running in days and your business will get value from the system within a week.

Users often need training in inventory management methodologies before being able to handle the software. Just because the functionality in a system is advanced, it doesn’t mean that the user interface and usability requires a Ph.D. degree. We believe that every manufacturing and distribution company keeping stock should have access to a great inventory optimization tool that is easy to understand and maintain. This is why we have developed iWebSquare Inventory Management System.

This breakdown makes it easier to make sound decisions about appropriate levels for each of these three areas. It helps determine the minimum safety stock needed to provide an insurance policy against supply chain problems either from manufacturing glitches or distribution uncertainties so that customers get what they ordered. It's useful for pinpointing the amount of inventory required to replenish deliveries every two weeks. And it helps companies find ways to avoid a backlog of excess or obsolete inventory.

Safety stock level feature differ by industries and how aggressive you plan to sale. Safety stock level is customizable and that is the core part of our inventory system – we can adjust and customize it to meet with your business requirements.

A. Typically, excess and obsolete stock stems from ineffective sales forecasting, planning or using a business model that fails to factor in product complexity and life cycles correctly. Inventory leaders establish processes to determine why excesses are being created and then develop a plan of action to sell it off. In some instances, the fear of the write-off has led to a large buildup over time of obsolete inventory.