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One of the greatest obstacles to effective inventory management is stock control software that requires you to reconcile your accounting figures with your operational stock figures.

Let’s assume that that you sell furniture in bulk. If you look at your accounting figures you can see – for example – how many sofas, chairs, tables and sideboards you buy from your suppliers, and at what cost. The accounting figures track the quantity of product owned by your company and its value. They ignore physical location and just deal with financial impact.

That’s where operational stock figures come in. These allow you to track every single item of stock, and follow its progress from the moment it is acquired to the time it is sold and delivered. So, to return to our furniture example, you can track how many sofas have been received from your supplier and their exact locations in your warehouse(s), even down to the detail of internal transfers from one warehouse bin to another.

Many companies have separate accounting and stock control software. In these instances, it is at best frustrating – and at worst almost impossible – to reconcile your accounting figures with your operational stock figures. That’s where inventory management using Microsoft Dynamics NAV comes in.

You don’t need to reconcile data in Microsoft Dynamics NAV

With Microsoft Dynamics NAV you don’t have to reconcile your operational stock figures with your accounting figures: all your data are already unified. This allows you to manage your inventory much more effectively.

Because you don’t have to reconcile data, you save valuable management time and focus on profit producing activities. Functionality of this kind also allows to you save money by keeping stock levels to a workable minimum. Less stock means less capital is tied up, and having the information to purchase stock to the right levels at the right time is invaluable. You can provide the same standard of service, but you can improve cash flow by reducing your inventory holding. You can revise your stock levels to match both demand and profitability.

With better information at your fingertips, purchasing decisions become more strategic and effective. And Microsoft Dynamics NAV also offers functionality that will make your purchasing process much easier, reducing the time and administration required to raise purchase orders.

That’s going to be the topic of our next blog post. Come back soon to read more. Or subscribe to our RSS feed to make sure you don’t miss a post.

Filed under: NAV