Do you find yourself constantly juggling the risk of stockouts, while also trying to avoid overstock of slower-moving items?
You’re not alone. Lots of large retailers are battling to balance across multiple locations and sales channels – especially if they are reliant on an ERP for their inventory planning.
It’s a predicament that we know as the Inventory Planning Dilemma, and it’s become increasingly urgent in a market where consumer demand shifts overnight and supply chain disruptions wreak havoc on forecasts.
In this blog, we’ll explore why traditional ERP systems, while essential for broader operational tasks, fall short in tackling the complexities of inventory optimization at scale.
More importantly, we’ll show you how Inventory Planner by Sage complements ERPs, providing the intelligence needed to forecast demand, avoid overstock and stockouts, and stay agile in an unpredictable market.
What is the Inventory Planning Dilemma?
The Inventory Planning Dilemma describes the frustrating reality faced by larger e-commerce brands when expensive ERP systems don’t deliver the level of precision needed for modern inventory management.
Despite their robust capabilities in operational workflows, ERPs often fail to ensure optimized stock levels, leaving businesses vulnerable to…
- Overstock of slow-moving products that ties up cash flow
- Frequent stockouts of high-demand SKUs that damage customer trust
- Manual workarounds using clunky spreadsheets that further complicate processes
In a tricky and competitive retail environment, these inefficiencies aren’t just inconvenient – they are dangerous.
For brands managing thousands of SKUs across multiple locations and sales channels, the costs of poor inventory management can spiral quickly into lost revenue and missed opportunities.
Why ERPs alone aren’t enough
ERP systems were built for a simpler time — one where businesses operated fewer sales channels, faced fewer external disruptions, and had less need for precision and agility.
Although ERPs remain the backbone of enterprise operations, providing a centralized platform to core operations, they weren’t designed to manage the level of complexity required in modern e-commerce inventory planning – especially at large, multi-channel brands.
Here’s why ERPs fall short…
- Static data. ERPs provide basic inventory tracking and replenishment functionality, but the data they generate is static. It doesn’t account for overnight trends, seasonality or external disruptions – leaving businesses without the real-time insights they need.
- Lack of predictive analytics. ERPs typically calculate reorder points based on static ‘min’ and ‘max’ stock levels, without predictive modeling to forecast demand spikes or dips.
- Manual workarounds. Many enterprise retailers resort to time-consuming spreadsheets to manage inventory, creating tedious workflows and increasing the risk of human error.
- No proactive alerts. ERPs can’t notify users of potential stockouts, overstock risks or supplier delays in advance, leaving retailers on the back foot.
How Inventory Planner can help
As the leading inventory planning tool for larger retailers, Inventory Planner is designed to fill the gaps left behind by ERPs when it comes to forecasting and buying inventory.
The app transforms raw ERP data into actionable insights, offering features that directly address the limitations of traditional systems. It means retailers can reduce complexity, save time and get a better ROI from inventory.
Here’s how Inventory Planner helps enterprise retailers overcome the Inventory Planning Dilemma:
- Up-to-date data. Unlike static ERP data, Inventory Planner syncs data across systems to provide accurate forecasts that adjust dynamically to demand fluctuations, seasonality and promotions.
- Automated recommendations. Say goodbye to spreadsheets and guesswork. Inventory Planner generates actionable buying recommendations, helping you prevent overstock and stockouts effortlessly.
- SKU-Level Insights. Analyze profitability, sales velocity and supplier performance at SKU level to make informed decisions about stock adjustments and vendor relationships.
- Proactive alerts. Receive notifications about potential stockouts, overstock risks or supplier delays so you can act before problems arise.
- Automated POs. Turn your purchasing recommendations into POs in seconds, while ensuring you meet supplier minimums and container size requirements.
ERP + Inventory Planner: The Ultimate Combo
For enterprise-level e-commerce brands, combining an ERP with Inventory Planner is the ultimate game-changer. Together, they provide the best of both worlds: the broad operational capabilities of an ERP and the precision of Inventory Planner’s advanced insights.
The benefits of combining your ERP with Inventory Planner include…
- Improved cash flow – thanks to stopping excess stock and stockouts
- Faster decisions – with automated, easy-to-understand inventory reports
- Boosted scalability – add new markets and channels while staying in control.
Streamlining 3,000 SKUs at Astrid & Miyu
Major jewelry brand Astrid & Miyu joined Inventory Planner to cut the complexity that came with buying inventory for 3,000 SKUs across 24 retail stores in multiple regions and a thriving webstore.
The software has enabled the business to automate replenishment and warehouse transfers for all locations, saving time and boosting efficiency. The team are now able to calculate accurate buy values directly from their buying recommendations report and send them to suppliers in a matter of clicks.
Maggie Vorstenburg, Merchandising Director, says: “There have been major efficiencies made since we joined Inventory Planner. We’ve definitely saved time and processes have been streamlined and automated which has been key to allowing the business to grow.”
Inventory glow up for Baik Brands
Baik Brands is one of the biggest names in beauty and lifestyle – but their team was bogged down with manual inventory tasks, managing 30+ stores plus online channels.
They needed a tool to streamline forecasting and replenishment across locations. After joining Inventory Planner, they eliminated stockouts on top-selling items and saved 150 hours a month by automating purchase orders.
Co-founder Jean Baik, says: “Every single order used to take us an hour, but now it’s done in 15 minutes. Our forecasting is so much more reliable and accurate now.”
Download The ERP Game-Changer Report
Ready to optimize your ERP and enhance your inventory strategy? Get your free copy of our exclusive report, The ERP Game-Changer: Intelligent Inventory Planning Made Easy