Varastonhallinta pk-yritykselle: perusasiat ja yleisimmät virheet

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

"Impact of balances on cash"

"Inventory balances have a direct link to cash flow:"

"Too large an inventory: capital is tied up in products that are not moving. Storage, spoilage, and obsolescence costs increase."
"Too small an inventory: delivery delays, lost sales, and dissatisfied customers."
"Wrong type of inventory: there are goods, but not what customers want."

"The goal of a small business is the 'just right' inventory level: enough to meet demand, but no more than necessary."

"Basic practices for effective inventory management"

"ABC analysis: classify products by sales. A-products (20% of products, 80% of sales) require tight monitoring. C-products less so."
"Alert limits: set a minimum level for each product when an order is placed. This prevents stockouts."
"Regular inventory: physical count 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 spoilage."

"Benefits of an ERP system in inventory management"

"Eemel ERP brings automation and transparency to inventory management:"

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

"Read more about ERP project management in our project profitability article."

"Monthly checklist for inventory management"

Check the stock levels of A-products and order if necessary
Review 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?
Conduct a small-scale inventory count for A-products at least

Practical example: e-commerce and overstocking

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

Eemel ERP's inventory 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 within six months

Try it in practice

Eemel ERP's inventory management provides a real-time view of stock levels, 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 counted?

At least quarterly, monthly for A-products. Eemel ERP simplifies inventory counting with stock comparisons.

What does an alert limit mean?

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

Does inventory management integrate with accounting?

Yes. Eemel ERP automatically updates the inventory value in 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.