As 2022 gets underway, Omicron is sweeping the nation, and the number of people not showing up for work is causing disruptions in every segment of life. Before COVID, an optimal supply chain was lean, with minimal inventory and JIT (just-in-time delivery). Today it’s imperative to have contingency planning.
How to Use Your ERP to Better Manage Inventory and Supply Chain Issues
Stock Levels: Set the safety stock levels, best-estimate lead times, and desired order quantities for all stocked items. Use “Forecast” orders so the system can tell how much material will be needed. Run the MRP or Advanced Planning and Scheduling daily. Stay on top of what needs to be ordered or made for stock.
Date Fields: Initially, fill out all date fields with your best estimates. Then use ERP’s alternative due date fields for all sales orders, purchase orders, and work orders for the best scheduling and planning predictions. (The alternative date fields for planning should help you see predicted delivery dates vs. promised due dates.)
Inventory Management: It’s critical that you manage all inventory better in 2022. If you are not doing so, use the “Bin” or “Location” features of your system to track the physical location of inventory. Be strict on rules about inventory movements – if the part moves physically, it must move in the system. Review all your inventory transactions for accuracy, including PO receipts, issuing material to jobs, bin-to-bin transfers, and shipping. Do cycle counts. For example, Epicor has excellent online training videos to get you started on cycle counts in their Prophet 21 system.