Inventory Management & Control

• Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse.
• The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

Material Requirement Planning (MRP)

• MRP involved mainly planning the product or parts requirements according to the master production schedule.
• MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

Manufacturing Requirements Planning
(MRP II)

• The MRP system evolved into MRP II by incorporating a few important aspects of business.
• MRP II utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.

Enterprise Resource Planning (ERP)

• Based on the technological foundations of MRP and MRP II, ERP system uses multi-module application software for improving the performance of the internal business processes.
• ERP system often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfilment, to order tracking.
• ERP software systems may include application modules for supporting marketing, finance, accounting and human resources.

• Production planning optimizes the utilization of manufacturing capacity, parts, components and material resources using historical production data and sales forecasting.

• Purchase module streamline procurement of required raw materials. It automates the processes of identifying potential suppliers, negotiating price, awarding purchase order to the supplier, and billing processes.
• Purchase module is tightly integrated with the inventory control and production planning modules.

• Inventory module facilitates processes of maintaining the appropriate level of stock in a warehouse.
• The activities of inventory control involves in identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.
• Integration of inventory control module with sales, purchase, finance modules allows ERP systems to generate vigilant executive level reports.

• Revenues from sales are live blood for commercial organizations.
• Sales module implements functions of order placement, order scheduling, shipping and invoicing.
• Sales module is closely integrated with organizations’ ecommerce websites. Many ERP vendors offer online storefront as part of the sales module.

• Both for-profit organizations and non-profit organizations benefit from the implementation of ERP financial module.
• The financial module is the core of many ERP software systems. It can gather financial data from various functional departments, and generates valuable financial reports such balance sheet, general ledger, trail balance, and quarterly financial statements.

• With a single integrated system, ERP system helps to provides visibility for key performance indicators (KPIs) required for meeting corporate objectives.
• Besides that, ERP system also helps to improve visibility into operations and provide one version of business information for improved decision making.
• By connecting operations with strategy, the company can create and align plans, budgets, and operational reports across organizations and for all business processes.

• By establishing uniform processes that are based on recognized best business practices, ERP system helps to reduce operating costs, such as inventory control cost, production costs and marketing costs.

• With extended end-to-end processes, some ERP System can help you increase process integrity and increase business and IT efficiency.
• The applications encourage collaboration within and across company boundaries, so you can use supply chain and sales information from suppliers, distributors, retailers, and customers to improve operations.

• ERP system helps to improve customer satisfaction based on improved on-time delivery, increased quality and shortened delivery times