Learn everything about SAP Inventory and its management features

Inventory management is the proper administration of the material that companies need for the purchase and sale of goods and the management of the preparatory activities prior to that; it is very important to have a stock of materials for effective administration.

To know in detail and obtain more information about the products in stock in an organization, it is necessary to properly manage the material inventory and ensure that all products can be supplied in the place and at the time required.

The processes for this to happen are often very complex; however, with SAP technology, warehouses can have better information availability and generar reportes más certeros que facilitan el orden, el control y todos los movimientos relacionados con la necesidad de la empresa.

 

¿Qué es un inventario?

Hay varias definiciones de inventario, pero como idea general, se puede expresar como una relación detallada y ordenada de todos los elementos que están en existencia y son parte del patrimonio y los recursos de una empresa.

Esto incluye no solo los productos finales que se pueden vender, sino también las piezas, la materia prima, y todo aquello que el negocio genera para sí misma, y para la fabricación de sus productos.

Por lo que es necesario tener el máximo control de un inventario y así poder gestionar los artículos de una manera correcta.

 

La importancia de la gestión de inventarios

Es importante señalar que SAP Business One ofrece la posibilidad de realizar la gestión de un stock empresarial a través de un inventario permanente. De esta forma los usuarios conocen con precisión cuántos productos hay en el almacén, la disponibilidad de cada uno, los requerimientos para la adquisición de insumos, etc.

Recordemos que este control representa dinero invertido en el negocio y si por alguna razón los bienes han dejado de venderse, el exceso de inventario ejerce presión sobre los fondos y los retrasos en el suministro, lo que reduce la satisfacción del cliente.

Es siempre necesario reevaluar el sistema de gestión de inventario y sus operaciones que tiene una empresa, y siempre mantener actualizados los sistemas. En la actualidad la gestión de inventario mediante un ERP como SAP permite optimizar los activos comerciales de una empresa.

Control de inventario

Cualquier empresa que vende bienes o productos ha estado gestionando el inventario desde sus inicios. Y generalmente sobre el camino crea un sistema de gestión completo con reglas basadas en muchos años de experiencia. Pero para fines de gestión de inventario, profundizaremos en este tema de vital importancia para cualquier negocio.

 

¿Qué significa administrar el inventario?

En palabras simples es conocer a detalle cuál es la situación correcta del inventario de una empresa. Hacer un seguimiento de su inventario es la prioridad número uno que debe tener una compañía para evitar faltantes o un exceso de inventario cuando la demanda está disminuyendo.

Una vez que la persona encargada de almacén tiene pleno control del inventario, el siguiente paso es ajustarlo de manera correcta. Lo ideal es buscar cierta cantidad de inventario para evitar una escasez de suministros, pero esto a su vez generaría costos más altos. Esto se debe a que requieren lugares con mayor capacidad de almacenamiento y más personal a cargo.

En términos de costo, siempre es mejor tener el inventario mínimo, pero suele ser el más difícil de ajustar. Si el suministro de materias primas es inestable, hay casos en los que es necesario preparar inventarios adicionales de materia prima en previsión de esto.

 

No solo basta con conocer el inventario

If a value is not added when administering it, knowing the materials in the inventory will not be enough. It is necessary to reduce internal inventory costs, achieve a stable supply, and smooth the flow of goods and products, including the supply chain.

Two main results are expected:

• Reduction of inventory and distribution costs,
• Increased speed of product supply.

Implementation of the inventory management system

It is at this point that the power of IT appears and its help in achieving an effective process in inventory management. Let's take a look at its importance:

The importance of an inventory management system

We know that inventory management has existed since the days when computers did not exist. Valuation, visual confirmation, and resource recording were done in a ledger. What are the benefits of IT in this regard?

• Real-time information: With the use of barcodes and QR codes, it is possible to know when each item enters and leaves the warehouse with a quick and accurate record.
• Data certainty: The use of ERP helps to eliminate entry and counting errors, as can happen with a handwritten ledger.
• Application of inventory management data to other fields: Providing feedback to other areas such as production and sales.
• Inventory visualization: By capturing all activities and distribution as data, it is possible to visually capture not only the movement of goods in the warehouse, but also the movement of inventory, including the movement of goods in and out of the warehouse.

What is the purpose of inventory management?

One of the objectives of the inventory management system is the search for complete and efficient IT. We know that many years of experience and intuition are required for inventory management, there will be adverse effects such as delays in operations when employees with more experience are absent.

At that time, problems that the company does not need can occur. One of the purposes of IT is to eliminate those harmful effects by eliminating skills and standardizing operations.

In other words, using tools like SAP, anyone can manage inventory from a computer. This allows us to manage inventory with fewer people and greater efficiency.

In the past, inventory management played an important role in accounting, such as controlling inventory assets. In the future, data will be able to be used for inventory forecasting and optimization simulations.

ERP and inventory management

Many people know that ERP is a system to optimize a company's business resources. Let's think about inventory management from that point of view.

Inventory is an asset present in the company.

Inventory is not just a process of temporary storage of products before they are sold or raw materials before production. Inventory is a source of sales and a business asset.

By properly managing inventory, costs can be reduced as much as possible, and the data collected can be used in activities such as production, distribution, and sales.

Inventory management is positioned as a business strategy rather than a task that the company performs. Therefore, it is recommended to use SAP ERP, which is a system to optimize asset management. Inventory management through SAP ERP facilitates its effective use for companies.

Company optimization and in its supply chain

Until there is a real evolution in company optimization as a whole and of the entire supply chain, it may not be possible to say that inventory optimization has progressed in the true sense of the word.

The positive business impact of inventory management is also limited. Let's remember that the ultimate and ideal goal is to capture the flow of inventory within the supply chain.

Furthermore, it is important to know what data and movements can optimize the activities of the entire business and continue implementing effective measures. The first step would be inventory management with ERP.

Inventory management is equivalent to business management.

Inventory management tends to be actively incorporated into corporate management. Therefore, it is important not only to introduce IT to inventory management, but also to have a relationship with SAP ERP for asset management optimization.

Since SAP can be in the cloud, it will be possible to implement a complete inventory management system that includes production, sales, and accounting with a short delivery time.

Cloud-based ERP operation is useful as a partner to strategically consider inventory management.

SAP Business ByDesign supports small and medium-sized companies that are eager to expand their business. It can be introduced immediately, and even with a limited number of IT personnel, it is possible to practice inventory management, including resource planning.

Why not take this opportunity to expand your thinking beyond inventory management to business management?

Real-time inventory management using in-memory technology

SAP provides SAP Integrated Business Planning (SAP IBP), which is a solution equipped with functions such as demand forecasting and sales planning, inventory optimization, supply planning, production planning, and supply chain monitoring.

This SAP IBP is optimized for SAP HANA, which enables high-speed processing using an in-memory database and has high-speed real-time data processing capabilities.

In a conventional ERP, there are problems such as performance degradation when updating multiple tables, details, and summaries; even table locks can occur when processing large amounts of information.

As a result, processing can only be performed at night, when there is no impact on storage and shipping processing, making it difficult to perform true real-time processing.

By solving these problems with the significant performance improvement of SAP HANA, it is possible to perform real-time inventory management, without downtime when always matching system data with actual inventory.

Furthermore, by integrating these solutions into ERP, it is possible to have a panoramic view not only of the supply chain but of the entire management, and to centrally and efficiently manage the company's resources.

Integration with SAP S 4HANA

SAP's latest generation ERP, SAP S 4HANA, works with SAP IBP. By linking with SAP S/4HANA, high-precision marketing, sales, procurement, production, and logistics information can be reflected in SAP IBP in real time, which allows for quick and accurate responses to market fluctuations.

If it is possible to capture information and signals such as market slowdown and customer demand decline and centrally manage management information, we can expect to avoid situations such as having a large amount of excess inventory.

By utilizing these technologies, it is possible to perform an efficient utilization of management resources.

If the speed of coordination of multiple management information is slow, it will not be possible to respond accurately in the time and quantity required by the market and customers, which will generate loss of opportunities, excess inventory, and a decrease in cash flow.

In today's business environment, where real-time performance is required, high-speed processing through in-memory databases is one of the great strengths of SAP HANA, and SAP S/4HANA and SAP IBP optimized for SAP HANA.

 

Efficient use of management resources through precise inventory management

When a product is received, it becomes inventory, and when an order is placed, the product is shipped from the inventory.

If this balance is lost and there is excess inventory, it will have the effect of increasing inventory costs and reducing cash flow.

On the other hand, if the inventory is too low, it will be depleted and the company will lose business opportunities and customer trust.

In this sense, inventory is the starting point of logistics, and its proper handling is the basis of business management.

Real-time understanding of the correct inventory and integration with SAP ERP to manage inventory in coordination with the constantly changing external environment, such as the market and supply and demand trends, will lead to efficient management of corporate management resources.

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