Reordering
How much to order and where it should go is a simple question. That is, when you are looking at 10 items and 2 warehouses. However, this proves more difficult when looking at 6000 items and 10 warehouses. Not to mention factoring in the width, length and color of each item. These complex inventory systems are exactly what an ERP system is designed to address.
Reordering is more than just placing and replenishing, it is the effective use of a company’s working capital to generate the greatest value, to the company and customers alike. It is not practical to stock everything, all of the time. This is why some inventory is purchased as required, some have safety stock levels and others don’t. Your ability to select the appropriate replenishment level will enable you to better use your working capital, without sacrificing your service.