Inventory accuracy is a predominant factor to both receiving and picking materials.
Often during material receipts stock keeping units (SKUs) arrives unlabeled or vendor
mix items from multiple purchase orders into a single shipment or consolidate them
on a single pallet [II]. For instance the purchase requests generated at the warehouse
can be directly processed at the procurement department by only assigned an
appropriate vendor based on the accepted purchasing terms and conditions. The ERP
system then creates a purchase order by prescribing the adequate replenishment lead
time (RLT) after considering the ATP time for the sales order explained in 3.1.1
above The purchase order need not be printed out. By setting an output master in the
procurement module of the ERP, a pdf format can be directly attached to the mail ID
of the supplier with a confirmation request. These steps ensures more transperancy
and clarity to the levels of inventory to be maintained at the warehouse. . All the six
SMEs agreed that a high degree of inventory accuracy was maintained after ERP
implementation. They believed that 80-90% and above accuracy was maintained in
inventory.