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With the use of ERP (Enterprise Resource planning) system SG can create daily report and weekly summary of inventory to know with more perfection of the period of uncertainty and will know immediately when the Re-Order Point is reached, and then, the period of uncertainty converts into lead time, the point from which we order till the point at which it’s delivered. This is the period between ordering the materials and their respective delivery. Reduction of back order and the resultant improvement in service level aiding the entity to enforced a 99% efficiency is another advantage of daily report and weekly summaries.
4. Periodic physical audits and control procedures for all warehouse stocks
Demand and supply of the inventories across the warehouses could be monitored with ease and any differences between physical as well as record-based inventory quantities could be reconciled in a proactive manner. Hence, the advent of inventory based record keeping systems have aided in the optimization of the lead times between receipt of shipments and while orders are actually transmitted to the supplier. The calculation of lead-time (L) and review periods (R) in an accurate manner helps companies minimize the safety stock and hence manage up to an incremental supply demand of up to 20% with optimal monetary investment in inventory.

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