---
title: Seven Key Indicators Your Current Inventory Management Process is Ready for an ERP Makeover
description: Companies in industries that rely heavily on product sales to generate revenue need to be consistently adapting to the demand of their consumers.
image: https://blog.concentrus.com/hubfs/pexels-photo-4481528.jpeg
---

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# Seven Key Indicators Your Current Inventory Management Process is Ready for an ERP Makeover

Posted by [Stephen Kavianian, Business Development Manager](https://blog.concentrus.com/author/stephen-kavianian-business-development-manager) on Apr 20, 2021 3:19:46 PM

![Stephen Kavianian, Business Development Manager](https://blog.concentrus.com/hubfs/1552600582195.jpg)

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![pexels-photo-4481528](https://blog.concentrus.com/hs-fs/hubfs/pexels-photo-4481528.jpeg?width=324&name=pexels-photo-4481528.jpeg)

 Companies in industries that rely heavily on product sales to generate revenue need to be consistently adapting to the demand of their consumers. If your company falls in one of these industries, then gaining real-time visibility while adopting automated processes to better streamline your inventory management operations could save you time and money.

Many companies today use manual processes and rely heavily on Excel to track their inventory. Doing so can create bottlenecks which are likely to increase your volume of unsold inventory and tie up your cash, leading to a reduction in cashflow. Although manual processes may be feasible during the initial phase of a company’s birth, as demand increases and sales begin to ramp up, these manual processes can become a daunting task.

In this blog we will go through seven key indicators that tell you it may be time to look at other options. Assessing these indicators will help you prepare to take action if your company is experiencing challenges with your current processes and will get you on the road to supporting sales growth with ease.

1. Inventory Shortages:

Having limited visibility of inventory will set you up for failure when trying to accurately gauge demand. Companies that allow products to consistently remain unavailable inevitably lose business.

1. Too Much Inventory on Hand:

Although sold inventory leads to revenue, there are costs associated with having to create space and utilize resources to keep the ship sailing. Having too much inventory due to an inadequate understanding of customer demand increases these costs, which now become harmful for your business.

1. Manuel Tracking of Inventory

Having to track inventory through paperwork or Excel can cost your company a lot of time, making it a tedious process. If you carry a lot of stock, it becomes very difficult to track   manually, especially across multiple warehouses.

1. Production Planning is Non-Existent

Poor production planning increases the risk of manufacturing delays, whether that be in-house or outsourced. Either way, companies that fail to adequately plan their production are unable to accurately forecast or prepare for future sales, which creates a bottleneck within the chain of operations.

1. Unable to Adapt to Changing Demand

The climate of your business is fluid, and every season may not generate the same demand. Whether you are having success one quarter, or lack thereof, having an outdated inventory management system prevents you from agilely adapting to these changing climates. Having a solid inventory management system allows for versatility at all times and ensures you are always hitting the sweet spots of changing/seasonal demand.

1. Current System is Preventing New Product Launch

If you plan on scaling your operations through a new product launch, or demand for your existing product line(s) drastically increases, you will more than likely need to expand your operations while making some internal changes to support this success. Many visionaries are always looking to innovate their business, but sometimes are unable to do so because they are unable to free up time and resources to make the required changes. A solid inventory management system helps create a much more seamless process that is both scalable and malleable when looking to launch new products.

1. Dead Stock is Costing You $$$

If you have inventory that expires within a specific time frame, you not only accrue costs from loss of space, but you also lose liquidity because expired inventory is no longer salvageable. Stock that is perishable or fragile needs to be tracked thoroughly and efficiently, otherwise, you will begin to accumulate dead stock.

If these signs resonate with your company and you’re looking to improve your inventory management operations, contact Concentrus today to discuss your ERP options. We are here at your service!

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 Tags: [ERP](https://blog.concentrus.com/tag/erp), [Project Management](https://blog.concentrus.com/tag/project-management)

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