It is common that companies are challenged with the accuracy and real-time information of their inventories, and look towards integrated solutions to tackle the problem.
They are right! Often these inconsistencies are caused by multiple systems that are not always synchronized in Real-time whereby different users may read different inventory balance and/or status. This results in interdepartmental meetings more often discuss issues regarding discrepancies and source of data rather than to resolve resolutions of business issues.
ERP systems operate and generate a single source of information. Each transaction is recorded and the source traced directly to other integrated modules eliminating discrepancies between departments as they are looking at the same source of information.
In addition, since all of the modules are integrated, a purchase will increase the future availability of an item, and a sale will decrease its availability. A reception of items will in real-time increase inventory on hand whereas the expedition of orders will do the opposite.
Combined with maintaining inventory by lot and location, ERP inventory management in real-time allows for a much more efficient placement of inventoried items, eliminating the time needed to search for stock.