Some people might have heard ERP, however, not everyone understand the true definition of ERP. ERP or Enterprise resource planning is a software to manage and integrate various operational activities into the business container.

ERP is a software that commonly used for business activities such as production, finance management, procurement of goods, human resources, projects, and others. Because this system is integrated, you will get the correct business information in real time. This will make it easier for companies to make business decisions based on information and data obtained.

Back then, the ERP was designed for the manufacturing industry only, however, ERP has developed and can be used in other sectors such as services, education, retail, real estate, government, and health.

ERP can be applied to various types of businesses because every company or organization needs to manage employees, sales activity, products distribution and financials management. ERP can help companies to manage these aspects. Furthermore, because it has many benefits for the company, it's a good idea to implement an ERP system in your company's inventory management. Here are some ways to use ERP technology for inventory management:

System Optimization

The first way to use ERP technology in inventory management is to optimize the system. It converts from a traditional system to a modern system. A complex task such as employee duties, inventory checking, checking working hours, financial reports and salary administration can be done automatically through an ERP system.

Before ERP technology, all the works above was usually done manually and would certainly take a lot of time. After applying ERP, the team will be more focus on their main jobs without having to disturb the other team. For example, the marketing team can monitor daily web traffic without having to ask from the IT team.

Facilitate the Inventory Process

The second way to use ERP technology for inventory management is by facilitating the inventory process. The ERP system can ease inventory management processes. You don't need to look for a product or document for a long time, because you can look for it and get the data directly or real-time.

You can also check inventory visibility activities from searching through machines or systems, manufacturers, jobs, production processes, and existing stocks. Furthermore, you can also predict when the stock of goods or products will run out and how to deal with the sudden demand in large quantitie.s

Inventory Transparency

Another way to utilize ERP technology for inventory management is to implement inventory transparency. With transparency in the inventory, procurement and purchase of goods will be able to improve company performance because the company can prevent problems that will arise in the future.

Furthermore, when there is combined data between internal and external data, it will produce insights that are useful for the next management strategy. You can check or view real-time data in the system sheet.

This is very useful when incorrect data entry will be visible and can be revised immediately. Because in traditional technology you would have to print them out, then you can see whether the data is correct or not.

Well, those are three ways to use ERP technology to manage inventory management. ERP technology is needed to improve the performance of manufacturing companies. However, the application of ERP technology requires high-speed internet. One of the industrial estates that provide high internet connectivity is Karawang New Industry City (KNIC).

KNIC has 6 accesses to national infrastructures such as the Jakarta-Cikampek toll road, Jabodetabek LRT, Trans Java lines, Jakarta-Bandung Railway, Kertajati International Airport, and Patimban port. In addition, KNIC is also supported by facilities such as premium electricity, natural gas, and fast internet connections to support the performance of manufacturing companies.


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