Varastonhallinta pk-yritykselle: perusasiat ja yleisimmät virheet

Inventory management directly affects a small business's cash flow: too much inventory ties up money, too little leads to lost sales. In this article, we'll go through the basic practices of inventory management, common mistakes, and how an ERP system helps.

Impact of balances on money

Inventory balances have a direct link to cash flow:

Too much inventory: capital is tied up in products that are not moving. Storage, shrinkage, and obsolescence costs increase.
Too little inventory: delivery delays, lost sales, and dissatisfied customers.
Wrong inventory: there is stock, but not what customers want.

The goal for a small business is a “just right” inventory level: enough to meet demand, but no more than necessary.

Basic practices for effective inventory management

ABC analysis: categorize products by sales. A-products (20% of products, 80% of sales) require strict monitoring. C-products less so.
Reorder points: set a minimum level for each product, at which point an order is placed. This prevents stockouts.
Regular inventory counts: physical counting at least quarterly. Balance errors are found and corrected.
Supplier management: agree on delivery times and minimum orders clearly. Long delivery times require a larger safety stock.
FIFO principle: oldest products are sold first (First In, First Out). Reduces waste.

Benefits of an ERP system in inventory management

Eemel ERP brings automation and transparency to inventory management:

Real-time balance tracking: see immediately how much of each product is in stock
Automatic alerts: the system notifies when a product is running low
Sales and inventory connection: sales orders automatically reduce stock levels
Reports: slow-moving products, shrinkage, and turnover rate are clearly visible
Integration with accounting: the value of inventory is always up-to-date on the balance sheet

Læs mere about ERP project management in our project profitability article.

Monthly checklist for inventory management

"Check the balances of A-products and order if necessary"
"Go through the alerts – are products running out?"
"Examine slow-moving products – should they be discounted or removed from the selection?"
"Check supplier delivery times – have they been met?"
"Perform a small-scale inventory for at least A-products"

"Practical example: online store and overstocking"

"A small online store ordered products 'just to be safe'. The warehouse had several months' worth of supply, and capital was tied up in products, some of which moved slowly."

"Eemel ERP warehouse management implementation:"

"ABC analysis revealed that 15 products accounted for 75% of sales"
"Slow-moving products were sold at a discount – capital was freed up"
"Alert limits prevented A-products from running out"
"Capital tied up in inventory significantly decreased in half a year"

"Try it in practice"

"Eemel ERP's inventory management provides a real-time view of balances, alerts, and turnover rate. Keep inventory levels optimal."

"Try 14 days"

"Frequently Asked Questions"

"What is ABC analysis?"

"ABC analysis categorizes products based on sales. A-products (20% of products) account for approximately 80% of sales and require close monitoring."

"How often should inventory be taken?"

"At least quarterly, monthly for A-products. Eemel ERP simplifies inventory with balance comparison."

"What does alarm limit mean?"

"An alert limit is a product's minimum level at which the system indicates that more of the product needs to be ordered."

"Does inventory management integrate with accounting?"

"Yes. Eemel ERP automatically updates the inventory value to accounting."

"Can Eemel ERP be used without inventory management?"

"Yes. Eemel ERP is modular – you can use only project management, only inventory management, or both."

"Sources"

"This article is general in nature and does not constitute legal advice."