The Impact of Poor Inventory Management in Discrete Manufacturing

Summary:
Discrete manufacturers must purchase and manage inventory responsibly. By having a dedicated manager looking after the inventory, you can monitor what materials are stored in the warehouse, what is being moved on to the service trucks, and the number of raw materials required to maintain an optimum inventory level.

Discrete manufacturers produce finished goods like toys, smartphones, automobiles, airplanes, or other tangible products that consumers use in everyday life.

But many discrete manufacturers don’t have a dedicated inventory manager and inventory management software that impacts customer relations and decreases profitability.

Customers don’t prefer dealing with companies that delay projects because of the lack of required materials or because they are unaware of the tools and equipment they have in the inventory.

Some companies use manual spreadsheets to maintain records, which is a time-consuming process and leads to human-induced errors. The worst part is that some companies aren’t tracking their inventory at all.

1. Inaccurate demand planning.

It’s challenging to predict the optimal quantity of materials and equipment you may require in the future if you don’t have records to analyze how much you have used in the past.

2. Absence of inventory control

Without an efficient inventory control process to monitor what is coming in and going out of the inventory and the location of items in the warehouse, it’s difficult to predict future needs.

3. Cannot locate items

The required item is often present in the inventory, but it’s challenging to locate their exact location. This may happen because of two reasons:

a. Absence of a designated storage location.

b. Multiple storage locations for the same item.

4. Excess inventory and stockouts

Remember that inventory is a liability in the balance sheet. So if you have more than the required inventory, you are making net losses. Numerous companies purchase excess inventory that sits on the shelf without being actively used in any project. As a result, a lot of cash is tied up that could have been used to carry out other productive projects.

On the other hand, sometimes companies suffer from stockouts where they don’t have the minimum level of inventory required to carry out daily operations. It leads to emergency purchases and delays in delivering products to the end-user, which might deteriorate the customer experience.

5. Disparate systems for storing accounting and inventory details

A substantial amount of companies store accounting and inventory-related details in different systems. It has several demerits like unnecessary manual work, increased human-induced errors, and a mismatch in data. Another thing to consider is that the inventory levels are constantly fluctuating, which means that manually maintained inventory records will be inaccurate.

Here’s how inventory management software will help you:

1. Improve inventory visibility

You will gain significant control over critical parameters like average lead time, the exact location of inventory in the warehouse, historical purchasing patterns, managing reorders, and maintaining optimal inventory levels.

2. Enhance inventory control

You can monitor and manage the entire inventory lifecycle and control costs. Moreover, the software tracks inventory usage and sends notifications to dedicated managers if the inventory levels go below the set threshold.

3. Accurate system of records

All the information — location, production date, expiry date, cost, lot number, and quantity — about each item, equipment, and material is safely stored inside secure servers accessible to relevant stakeholders from any place and any time. Also, information is updated instantly in real-time, eliminating errors, and saves employees’ time who can focus more on mission-critical tasks.

4. Creating accounting efficiencies

Disparate information systems are the root cause of organizational inefficiency. Inventory management software bridges the gap between different ERP systems and updates data in real-time, which helps to maintain error-free records.

5. No excess inventory and stockouts

Real-time inventory information will allow you to purchase only so much inventory that can be used actively to carry out daily operations. First, in this way, you can save a lot of money that would have otherwise been spent on purchasing unwanted tools and equipment. And secondly, you will never face stockouts because you will always have a minimum inventory level to execute productive projects.

Conclusion

Maintaining an adequate level of inventory is essential for business across all sectors. It helps you save costs, boost profit, and have emergency stocks. Inventory management software provides these benefits to discrete manufacturers to retain their market competence and provide an excellent customer experience.

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At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. You can also write to us at sales@sagesoftware.co.in.

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

Time to review your customer service operations with Sage CRM through COVID-19

In this current situation of dormant demand and economic recession, existing customers of every business firm are their biggest asset as of now. Thus most of the businesses are adjusting their priorities and focusing their attention on existing customers. Many organizations are putting their efforts in analysing, assessing and adapting their operations to set themselves up for future sustainability and growth post COVID-19. Since, there are many sectors related to a single business firm for enhancement; in this article we will discuss about upskilling your Service agents to manage Customer service provisions with the help of Sage CRM.

Focus on servicing your customers the way they want to be serviced –

Nowadays Customers expect consistent service regardless of the channel they use to contact you. It is no longer based on the Selling point channel that should be the only source to share the concerns related to product or service. But variations to be able to contact through any channel and to be updated with the progress of the complaint logged is what is been expected.

1. Email: Are you supporting requests via a central support email inbox?–

Sage CRM allows configuring an email account in the application which will thereby download all the emails directly into the CRM. Thus, configuring a centralized Support email account will help the service agents to access all the complaints or concerns raised by the Customer within the CRM. Doing so, will also help in maintaining the Customer data i.e. the contact information, the product/service purchased as well as the complaint tickets in a single application. Thus, there will be an ease in access of Customer’s details as well as the provision to solve and update them with the resolution details from the CRM itself either with the help of manual emails or with the help of ticket workflow’s email action.

2. Portal:What about allowing your clients to log into a Web portal and manage support tickets online? –

The ability of integrating a Web portal with Sage CRM will help to manage support tickets online. Thereby, reducing the task of the Service agents to manually log in the queries raised by the client in CRM but rather focus on resolving the same.

3. Website: Are you capturing enquiries via a Web form? –

The ability of allowing your Customers to opt for raising new enquiries with an ease can prove profitable even in these crucial times. Sage CRM’s Web to Lead will help to design a web form to capture enquires online and it will be directly reflected in the CRM.

Rethink your case routing –

It’s the right time to build a clear picture of agent skills and knowledge. Compared to earlier, your agents might have little more time now; thus identifying the gap in your service agent’s knowledge and grabbing the opportunity to train these agents will be of great profit to your business. Reviewing your case routing based on agents expertise and ability will increase chances of rapid and accurate resolution thereby, making your service desk more efficient. Making the job more interesting for the agents who get to deal with the issues they are expert in which ultimately delights the customer who just wants their issues sorted out as quickly as possible.

Measurement and Reporting –

No business will ever want the SLA’s to be breached, the Customers to be disappointed or your service agents getting frustrated. But, how to identify whether your business is managing it in a right way? Try to answer below questions –

  • Which support cases have had no response?
  • Which members of your support team are closing most of the issues?
  • What’s the average response time?
  • Which support members have the most open cases?
  • Which cases are about to breach SLAs?

If you cannot easily answer the following questions, then you need to re-evaluate your processes and the technology you are leveraging to get to the vital KPIs of your service team. Sage CRM can easily help to evaluate the past processes with the help of Standard built reports as well as by customizing the report view to get the desired ouput.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. You can also write to us at sales@sagesoftware.co.in.

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Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

How to Accelerate Relationship with Your Clients during a Pandemic?

Customer Satisfaction During Pandemic

Due to the massive outbreak of COVID – 19, majority of business firms have closed their operations in order to practice social distancing. However, one of the prime responsibilities of the management is to inform their clients on the status of the company’s operations. Most of the businesses are trying to figure out ways to enhance networking while working from home. Some are bagging success at it, while some are still struggling the way out.

However, even in this pandemic, you can nurture the customer relationship by maintaining constant communication with your clients, thereby securing your business image and trustworthiness through CRM software.

In order to accelerate customer relationships with your existing and new clients, CRM system will help in managing and automating operational workflows to be more client-centric and interlink every functional aspect of your business.

Methods to Facilitate Customer Relationship

1. Recognize Standard Communication

When the marketers target fresh prospective customers for acquiring new sales prospects, they can gain additional information of the potential buyer’s product interest through social media profiles. Identifying all the necessary details and capturing them in CRM helps in eliminating the process of conveying the same to Sales team for further processes. Thus, the sales team generates more optimized and relevant interactions with the valuable data of these software prompted target audiences. Therefore, CRM offers a comprehensive perspective of each client based on social accounts, exchangeable information, including their purchasing habits, and online activities.

2. Remove the Need for Physical Data Processing

Automating operational functionalities of the company with CRM system will help the Sales and Marketing teams to overcome manual processing of the information. Integration of Enquiry page from Company’s website to get the enquiries logged directly in CRM. Auto-acknowledgment emails to the prospects as well as notifications to the Sales team to work on the new enquiries saves a great amount of time for Sales and Marketing divisions thereby allowing them to focus more on client acquisition and less on data processing.

3. Emphasize Vulnerable Customers

For adequate growth of the organization, it is important for the business planning team to promptly recognize all the vulnerable clients, and react quickly to nurture them. Defining SLA’s at the Customer level and configuring escalations in order to maintain the TAT by the customer service team helps in identifying and managing vulnerable clients within time. Also it is been sensible enough to engage these existing customers, as it is nearly five to six times more costly to acquire new clients at any stage of the business.

An appropriate customer-focused approach backed up by a CRM system, will help marketing professionals skillfully strengthen their client relationships, while promoting sincerity with all the existing audiences during this lockdown.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in.

 

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.