Inventory waste costs manufacturers money every single day. Whether it's expired materials, excess stock taking up warehouse space, or shortages that stop production lines, poor inventory management hurts the bottom line. Manufacturing companies lose between 20% to 30% of their inventory value each year due to waste, damage, and obsolescence.
The good news is that modern ERP software can help solve these problems. By tracking inventory in real-time, predicting demand, and automating reorder points, these systems help manufacturers keep just enough stock on hand without overdoing it. This means less money tied up in inventory, fewer write-offs, and more space in the warehouse.
We've identified the 10 ERP solutions that do the best job of helping manufacturing teams cut inventory waste. These systems use different approaches, from advanced forecasting to lean manufacturing principles, but they all share one goal: keeping inventory levels exactly where they need to be.
MRPeasy leads the pack when it comes to preventing inventory waste through smart planning and tracking. The system uses actual consumption data to calculate exactly how much material you need for upcoming production runs, eliminating the guesswork that often leads to overordering.
The software tracks expiration dates for perishable materials and sends alerts before items go bad. This feature alone saves food and chemical manufacturers thousands of dollars monthly. The system also monitors shelf life and automatically prioritizes older inventory for use first, following FIFO (first-in, first-out) principles.
MRPeasy's reorder point system prevents both stockouts and excess inventory. The software learns from your historical data to set optimal reorder points and quantities. It factors in lead times, seasonal variations, and safety stock requirements to ensure you have materials when needed without overstocking.
The real-time inventory tracking shows exactly what's in stock, what's committed to orders, and what's in production. This visibility prevents duplicate ordering and helps identify slow-moving items before they become obsolete. The system also tracks inventory costs accurately, making it easy to spot and eliminate unprofitable products.
At $49 per user per month, MRPeasy provides these waste-reduction features without breaking the budget. Most manufacturers see inventory reductions of 15-25% within the first six months of implementation.
NetSuite tackles inventory waste through demand planning and intelligent fulfillment. The system analyzes sales patterns, seasonal trends, and market conditions to predict future demand accurately. This helps manufacturers avoid producing items that won't sell.
The demand planning module considers multiple factors when forecasting needs. It looks at historical sales, current orders, market trends, and even weather patterns for seasonal products. This multi-factor analysis reduces forecast errors by up to 50%, which directly translates to less excess inventory.
NetSuite's inventory optimization features identify slow-moving and obsolete items automatically. The system generates reports showing items that haven't moved in specified periods, allowing teams to take action before these items become complete write-offs. Whether that means running promotions, returning items to suppliers, or scrapping materials, early identification minimizes losses.
The software also supports lean inventory practices through features like vendor-managed inventory and drop-shipping. These options help manufacturers reduce on-hand inventory while maintaining service levels.
SAP Business One reduces inventory waste through precise material requirements planning. The system calculates exact material needs based on production schedules, considering scrap rates and yield percentages to avoid over-ordering.
The batch and serial number tracking in SAP Business One helps manufacturers manage perishable goods and warranty items. The system tracks each batch through its lifecycle, from receipt through production to final sale. This traceability helps identify and isolate quality issues before they result in large-scale waste.
SAP's cycle counting features help maintain inventory accuracy without shutting down operations for physical counts. Regular cycle counts catch discrepancies early, preventing the accumulation of phantom inventory that ties up capital and warehouse space. The system can even suggest which items to count based on value and transaction frequency.
The available-to-promise functionality prevents overselling and the rush orders that often lead to excess inventory. By showing exactly what can be delivered and when, the system helps sales teams make commitments they can keep without pressuring production to maintain excess stock.
Microsoft Dynamics 365 Business Central minimizes inventory waste through intelligent purchasing and warehouse management. The system suggests purchase quantities based on actual demand, lead times, and carrying costs, finding the sweet spot between ordering costs and holding costs.
The item substitution features help use up existing inventory before it becomes obsolete. When a customer orders an out-of-stock item, the system can suggest alternatives from available inventory. This reduces dead stock while maintaining customer satisfaction.
Business Central's warehouse management features optimize storage and picking operations. By directing workers to pick older inventory first and organizing the warehouse efficiently, the system reduces damage and obsolescence. The bin management system ensures fragile or perishable items are stored properly and used promptly.
The planning worksheets in Business Central show the complete supply and demand picture. Planners can see upcoming requirements, planned receipts, and current inventory in one view, making it easier to balance inventory levels and avoid both shortages and excess.
Epicor ERP approaches inventory waste reduction through lean manufacturing principles. The system supports kanban replenishment, where inventory is pulled through the system based on actual consumption rather than pushed based on forecasts.
The supplier relationship management features in Epicor help reduce inventory by improving supplier performance. The system tracks on-time delivery rates, quality levels, and pricing trends. This information helps manufacturers work with reliable suppliers who can support just-in-time delivery strategies.
Epicor's advanced MRP engine considers multiple constraints when planning inventory. It looks at capacity, tooling, and labor availability to ensure materials arrive just when they can be used. This prevents materials from sitting in the warehouse waiting for production capacity.
The excess and shortage reports identify imbalances before they become problems. If you have too much of one component and not enough of another for a product, the system alerts you to adjust purchasing or find alternative uses for excess materials.
Infor CloudSuite Industrial uses artificial intelligence to predict and prevent inventory waste. The system learns from past patterns to identify items likely to become obsolete and suggests actions to prevent write-offs.
The demand sensing capabilities go beyond traditional forecasting. The system monitors point-of-sale data, social media trends, and economic indicators to detect demand changes quickly. This early warning system helps manufacturers adjust production and inventory levels before excess builds up.
Infor's inventory optimization algorithms balance service levels against carrying costs. The system can maintain different service levels for different products or customers, ensuring critical items are always available while minimizing investment in slow-moving products.
The collaborative forecasting features involve sales, production, and suppliers in the planning process. This consensus approach reduces the bullwhip effect where small demand changes create large inventory swings upstream.
IQMS (now DELMIAWORKS) prevents inventory waste through real-time monitoring and control. The system connects directly to production equipment to track actual material usage, catching overconsumption or quality issues immediately.
The real-time inventory updates mean everyone works with current information. When production uses materials, inventory updates instantly. When quality control rejects a batch, the system adjusts availability immediately. This real-time accuracy prevents ordering materials you already have or promising inventory that doesn't exist.
IQMS handles complex units of measure conversions automatically. Whether you buy in pounds but use in pieces, or purchase in sheets but consume in square feet, the system maintains accuracy across all units. This prevents the ordering errors that often result in excess inventory.
The preventive maintenance scheduling helps avoid the emergency situations that lead to rush orders and excess inventory. By maintaining equipment properly, manufacturers can rely on standard lead times rather than maintaining extra safety stock.
Acumatica reduces inventory waste through flexible replenishment strategies. The system supports multiple methods including min/max, fixed order quantity, and dynamic calculations based on lead times and demand variability.
The inventory allocation features prevent over-committing stock. The system can reserve inventory for specific customers or orders while showing other stock as available for general use. This prevents the situation where everything looks available but nothing actually is.
Acumatica's mobile warehouse management speeds up receiving and shipping operations. Faster throughput means less time for damage or deterioration. The mobile apps also enable real-time cycle counting, maintaining inventory accuracy without disrupting operations.
The landed cost tracking ensures accurate inventory valuation. By including freight, duties, and handling in item costs, the system helps identify truly profitable products and eliminate those that only appear profitable due to incomplete costing.
Plex minimizes waste through detailed tracking and control. Every material movement is recorded, creating complete genealogy records. This traceability helps identify where waste occurs and why.
The quality management integration prevents defective materials from entering inventory. Incoming inspection results update inventory availability in real-time. Materials that fail inspection never appear as available inventory, preventing their use in production.
Plex's production scheduling optimizes material usage across multiple orders. By combining requirements and scheduling efficiently, the system minimizes setup waste and material transitions. The finite scheduling ensures materials arrive just as capacity becomes available.
The supplier portal allows vendors to see real-time requirements and inventory levels. This visibility helps suppliers plan their production and deliveries, supporting just-in-time strategies that reduce on-hand inventory.
Odoo offers inventory waste reduction tools at an affordable price point. The system includes basic but effective features for tracking inventory levels, setting reorder points, and managing multiple warehouses.
The inventory adjustment features help maintain accuracy through regular counts and adjustments. The system tracks adjustment reasons, helping identify patterns in inventory losses. Whether it's damage in specific warehouse areas or errors in specific processes, pattern identification helps prevent future waste.
Odoo's routing features optimize material flow through the warehouse. By defining optimal paths for receiving, storage, and shipping, the system reduces handling and the associated risk of damage. The cross-docking capabilities allow materials to bypass storage entirely when possible.
The scrap management features track and analyze production waste. By recording scrap reasons and quantities, manufacturers can identify and address the root causes of material waste in production processes.
Implementing an ERP system to reduce inventory waste requires more than just buying software. Success depends on accurate data, trained users, and commitment to continuous improvement. Start by cleaning up existing inventory data, including accurate counts, costs, and lead times. Train employees not just on how to use the system but on why inventory management matters.
Set realistic goals for inventory reduction. Most manufacturers can reduce inventory by 20-30% in the first year, but trying to cut too much too fast can lead to stockouts and customer dissatisfaction. Monitor key metrics like inventory turnover, carrying costs, and obsolescence rates to track progress.
Remember that inventory waste reduction is an ongoing process. Markets change, products evolve, and customer demands shift. The right ERP system provides the tools and visibility needed to adapt to these changes while maintaining optimal inventory levels. Choose a system that fits your current needs but can grow with your business, and you'll see benefits for years to come.