Why is inventory software better than ERP / Excel for your lab business?
Godavari Doke from CrelioHealth shows that having the right solution to manage your inventory gives you a granular understanding of how inventory is consumed on a daily basis.
Inventory consumption should be assessed by timely analysis for sound inventory management. Since inventory is a factor dependent on lab testing, managing it through tracking can help you plan your inventory and cost smoothly. However, tracking is highly dependent on the system you are using.
Most laboratories use ERP systems to manage inventory. However, for effective management, let’s go through different systems and understand how they show varying results for the same scenario. By doing this, you can understand which system can provide long term business success.
The image above interprets two scenarios of stock consumption from your inventory.
In the first graph you can see the consumption details on the 10th day after the stock is fully used / used up, while in the second graph you can see the consumption of the stock in real time. With a consumption trend for each day of use of the stock, you can enjoy a wide range of benefits for the diagnostic activity.
To understand how to take an example of reagent usage – say 200ml. bottle.
If you use an ERP, Excel or manually record stock updates regularly, then for this bottle, the stock consumption will only be recorded after the bottle is fully consumed. Say after 10 days. This makes the data insufficient to know the actual consumption of the stock on a daily basis.
On this note, inventory software with automatic stock consumption will get stock details on each time consumption through the graph. It maps the required quantity and quantity of inventory to each test; thus showing you the actual consumption of the stock from time to time.
Before you understand the benefits of using such statistical data, know what issues this data can solve for your lab business.
What problems does it solve?
Compared to an ERP system, the inventory management system with real-time consumption analysis solves the following problems:
Problem 1: Consumption measures calculated or visible only after end of stock
Problem 2: Poor inventory management leading
Problem 3: Inaccurate forecasting of future inventory requirements
Plus, let’s find out the benefits of each and then turn to the benefits of those scans to find out which one is most effective and contributes to your diagnostic center.
Real consumption rather than pseudo-consumption
Rather, noting the actual consumption can help you know how the inventory consumption is working for the tests performed. This can be useful for managing current inventory and better planning ahead. Tracking this pseudo-consumption through ERP systems is complex because it only shows a final number rather than daily trends.
With improved inventory management, you can efficiently manage all tasks of inventory management. This gives you more time and bandwidth to optimize inventory activity rather than investing time in input work. During this time, you will be more focused on the real inventory challenges than on the data management. This will increase the productivity of staff and inventory managers by better managing the entire system.
Help with the projection of purchases / stock needs
When you know the actual consumption, it is easier to project precise monthly orders for future needs and costs. A clear picture of daily usage trends is useful for forecasting future needs for normal test counts as well as days when test volume has increased or decreased.
Indicates the differences between the consumption of the device
Automatic inventory consumption provides enough data to check for abnormalities during testing, such as poor machine consumption. If the real-time analysis for a given test indicates more consumption, it shows that the analyzers or the machine are consuming more amount of stock than necessary. In the real-time analysis, you can easily see how, for a given test, the machine consumes more quantity than necessary. If the consumption is in line with expectations, it means that there is control over the consumption of your stocks.
How does this help you in your lab business?
Now that we’ve learned the problem-solving benefits of learning how to use real inventory, let’s understand why we need it for long-term lab management.
Learning about actual consumption can –
Help you plan and optimize the cost of inventory
Reduce waste by making sure you don’t order too much
Help you make informed decisions to reduce the gap between actual consumption and the device
Improve the overall productivity of staff, management and the laboratory
Save on trade costs by avoiding under / overstocking situations when ordering
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