ABSTRACT
This chapter explores the common inventory myths that may be costing money and examines how to address them with proper inventory management software. To optimize inventory management, leading companies integrate their inventory software directly with back-office and accounting systems. This integration provides a competitive edge with abilities to plan effectively, execute predictably with customers and minimize labor costs and errors associated with manual reconciliation. Many companies are using supply chain partners to manage their inventory levels and customer shipments. To do so effectively, the inventory system must be integrated not only with the company’s back-office systems but also with supplier and 3PL, or third-party logistics, systems. Inventory and back-office system integration must be real-time, flexible, transparent to users, reconcilable, and scalable. Businesses can use sales forecasts to build an inventory plan and even augment the plan with special predictions, such as marketing input on new product launches.
