Inventory Reconciliation Between Systems
Slow, inaccurate inventory management
Inventory accuracy validation can be managed in many ways: Through daily or weekly cycle counting or through full physical inventories. Managing multiple warehouses as well as working with outsourced warehousing adds complexity to inventory accuracy management.
Let’s take a step back and look at the process of managing the inventory of record in your ERP system, separate from the floor counts. When a company is managing their inventory through an outside warehouse system, the struggle is to maintain real-time accurate account of the inventory in the company’s operating system.
In these cases, the inventory must be reconciled between the outside warehouse system and the financial accounting record. Many times, we see manual intervention slowing these complex and time sensitive processes.
Common problems from this process
- A lengthy reconciliation process to identify an inventory discrepancy.
- Late identification of a picking mistake which would mean the customer has received incorrect product or the wrong quantity
- Incorrect reporting of available inventory or inventory shortages through the sales order verification process. When inventories are not maintained, an incorrect order confirmation will be generated. Or, the reverse may happen, which is reporting an out of stock when product is actually available.
How HULFT can help
HULFT Integrate can connect to many databases, communicate with an API, send transaction data from a handheld scanner, and many other data integration activities.
HULFT Integrate can constantly scan the inventory data between the ERP (financial) reported inventory and the warehouse inventories. A discrepancy between the two systems can be flagged immediately. Early identification of out-of-sync inventories allows for reconciliation before the discrepancy affects an order.
In addition to basic inventory reconciliation, the constant monitoring may also be used to manage and coordinate FIFO picking and lot control.