The Importance of Inventory Visibility in Remanufacturing
One industry that we focus on at Stoneridge Software is remanufacturing. Over the years, one of the core issues that our clients have faced revolves around inventory visibility. Inventory visibility is the key aspect in the remanufacturing business.
Conditions of inventory visibility
Understanding the number of conditions of one of your particular products and understanding the SLA agreement that you may have with customers, in terms of what the quality or condition of that product is that you’re going to be able to ship to them makes major impacts on your revenue and drives more of your business in contracts as you grow in your organization.
In the worst-case scenario with inventory visibility, because you couldn’t satisfy a particular condition that you may have on a contract, you may lose business. For many of our customers, being able to make informed decisions based off of the data that’s actually been transacted inside of the system is critical for the leaders and decision-makers in your organization.
Core return processing
When you look at core return processing, you need to understand what cores have been returned so that those discounts that you may have applied to a customer can actually be posted to your accounts receivable. Secondarily, you need to understand the amount of inventory, the quantity of inventory that you have on hand in order to be able to then sell that product.
Otherwise what’s going to happen is that the customer is going to go to another remanufacturer for that particular product. Being able to visualize and understand this data, to react off of it and to also then be able to give your customer a world-class experience are key deliverables within the remanufacturing lifecycle.
Inventory visibility is a key component in the remanufacturing life cycle. Being able to understand what types of products and what conditions those products are in your inventory can affect the selling price to your end customers. This is applicable to cell phones, computer systems, transmissions, and many different types of products in existence that we use in our daily lives.
Being able to easily transition these conditions, and see the visibility into inventory makes a remanufacturer more successful long-term. Product variation is a component that allows your customers to have the choice. If you don’t have those variations, you can’t sell that product. And if you can’t sell that product, that’s business that you lose to another competitor.
Having this visibility, understanding then what is the actual sales volume that’s occurring is very important for you and is tackled inside of our solution. Microsoft Dynamics handles inventory visibility for remanufacturers, as well as all other core company functions. If you have any questions or would like to learn how Microsoft Dynamics could fulfill your remanufacturing business needs, please don’t hesitate to reach out.