Element for a Good Inventory System

The Elements of a Good Inventory System

Every company have inventory problem, every company will require the great system to manage their inventory so it will help you become more productive. But no matter how good you control, you are still fail if you don’t do some very basic things.

You may be able to improve on our recommendations or your enterprise may have to do things differently but if you follow our recommendations you’ll wind up with a pretty good system.

The Critical point of a great Inventory System

• Well Organized Location Names
• Location Labels that are easy to read, and unambiguous
• Unique, Short, and Unmistakable Item Numbers
• Units of Measure
• A Good Starting Count
• Software that tracks all inventory activity
• Good Policies
• Most Important: People who know and follow good policies

I will explain in my next post why these elements are so important.

Vivienne from www.mrp.com.my

Generate Great Item Code

Great Item Code will Make Your Life Much Easier!

Tips on Creating Item Number Schemes

• Unless you are forced to do so by something out of your control, never start an item number with a zero. Just trust us on this.
• Avoid using letters that can be confused with numbers.  The main culprits are O,I, and L. 
• DO NOT use a manufacturer's serial number or part number for your part number. These numbers are often too long and cryptic. Plus, if you switch suppliers, or the manufacturer changes their number it becomes meaningless to your organization. 
• Keep item numbers short - but not so short that they could be mistaken for other numbers (i.e. quantities). 4 - 8 characters will suffice for most organizations.
• Do not load item numbers with meaning - do not try to use the item number to describe your product. This will only make your numbers longer, and more complicated. Save this information for the item description.
• Consider using a few letters. Letters will help further distinguish your item numbers from other numbers, and they will greatly increase the number of possible item numbers you can have while keeping the overall item number length as short as possible.
• Using a few letters from the beginning of your item description at the beginning of your part numbers will make it much easier to look up items in pick lists. For example, if you were creating an item number for “Sauce, Chocolate” you might create the number “SAU101” , “Sauce, Caramel” “SAU102” etc...
• Avoid loading inventory item descriptions with more information than absolutely necessary. Information such as vendor names, manufacturer, country of origin, expiration dates, and so on belongs in the "item details", or" transaction details", areas where it can be used more effectively.
• Do not use characters that might confuse people or software. For example, using a comma in your item number might make it look like a quantity or price. Using a "/" can result in Excel formatting your part number as a date. Symbols such as "<", ">", and "*" can have unintended consequences when moving data between Clearly Inventory and your spreadsheet program. Try to keep your item numbers simple and alpha-numeric where possible.

During ERP Implementation

When implementing an ERP system. some users may alawys hv issues about their computer illiteracy, or may say that they have spent many years doing what rhey are doing now without help from an ERP system. Other users may say that their jobs will be threatened by the new system, or that they will not know how to do the job within the scope of such a system. Yet another group of users may stress values such as the importance of existing system, which may be jeopardized by the new ERP system and so on and so on..........

My personal point of view, all ERP users are expected to be reluctant to welcome the new system if they do not know how it works. Teaching each of the user groups how the ERP system works is important for them.

hands-on training is another important driver of ERP implementation success. Training offer a good opportunity to help users adjust to the change , it also helps to build positive attitudes toward the new system when they get to know the system more, training provides hands-on experience for the users: they appreciate the quality attributes of the system and its potential benefits and also of course the hard work spent by the consultant.

Who and what do you need for an implementation?

1. Project Manager-This person must create and manage the project schedule, tasks and communication.
2. Implementation/Core Team-The core team should consist of a cross functional group that understands your business, the project goals and knows the history of the organization.
3. Systems-Determine what systems are required to support the new application. What interfaces are required to other applications?
4. Business Processes-Verify that current processes are documented. These will be the baseline to determine how well the new application meets your business requirements and how the new application will impact current processes.

Tips by ERP gurus:

Here are a few tips by ERP gurus:


1. Create workable ERP implementation goals and plan. Be smart and create a process that has stages and involves all concerned at each stage. Test the ERP at every stage; this will smoothen out kinks when they are small.
2. The ERP implementation should be a hands on process for end users. Involve the employees who will handle ERP process in both planning and execution.
3. In case ERP is not in your skill set then get a ERP consult who will work hand in hand with your team. This will iron out the implementation process and give insights.
4. Give training in ERP importance. Include training costs in the ERP implementation budgets. A well trained team means a lot especially when the organization is new to ERP systems.
5. Tone down ERP ambitions to workable levels. Implement ERP in stages this will ensure returns on your investments. Teams often get carried away and push for going all the way in one go
6. If you are using a ASP for your hosting model then think about aspects like cookie cutter solutions and customization options.
7. Be smart and choose an ERP that is industry standards based.
8. Well before purchase find out about training and maintenance costs.
9. Look into aspects like expansion / upgrade possibilities.
10. Take a close look at your business processes and determine the changes you may need to implement to fit into the ERP software functions.
11. Before contracting with an ERP vendor do a market survey to determine vendor’s stability. Find out how long the vendor has been in the ERP business and his performance.
12. Ensure that the “return on investment” is in figures. Simulate the ERP suite and make calculations to verify figures. Never go buy promises that are not definite numbers.
13. Ask about customization assistance from the vendor. A good vendor must be willing to hold your hand through the ERP implementation process.
14. Get professional help in contract negotiations. Ensure that your interests are well protected.
15. Pay close attention to the ERP implementation, quality of data, workflow. Track the process during season and off season too.

What data will be used for ERP training?

What data will be used for ERP training?

For best results, your Partner should set up a test company for the purposes of training using your own company data.

This will stay separate from the actual database you will use when you go live.

If your users get trained on fictitious sample company data,the impact will be diluted when they start to work with your own data and processes.

ERP Training: The Key To Happy Users

Training: The Key To Happy Users Knowing how to use your new system effectively is the key to making your investment worthwhile and keeping your users happy Training is definitely one area you donϜt want to skimp on.

The best Partners have dedicated, experienced people focused on training. Take note : a highly skilled implementation consultant does not always make a good trainer! Ask to meet the trainer or to audit a training session so you
can evaluate the quality of the training.