Inventory out of control costs more than idle stock

When inventory is not integrated, up to date and visible, companies lose much more than margin - they lose predictability, efficiency and responsiveness.

Inventory management has a direct impact on operational efficiency, customer service and business profitability. Even so, many organisations still struggle with differences between physical and system stock, reactive purchasing, unexpected stock-outs or excess goods in the warehouse.

In most cases, these problems are not caused by a lack of stock, but by a lack of integration and reliable real-time information.

When management relies on manual records, spreadsheets or scattered applications, the operation loses visibility, the risk of error increases and planning purchasing, production and shipping becomes harder. Inventory stops being a strategic asset and starts consuming time, resources and margin.

 Efficient management requires technology-supported processes: traceability by item, batch and location, automatic recording of movements, permanent inventory, reorder points and data fully integrated with purchasing, sales, invoicing and accounting.

Only then is it possible to reduce losses, optimise the capital invested and guarantee consistent service levels.

Beyond the operational impact, there is also a significant tax requirement that comes into force in 2027. The annual inventory report to the Portuguese Tax and Customs Authority (AT), currently submitted mainly in quantities, will also require reporting of the valued inventory, including the book value of stock.

This requirement obliges companies to keep a permanent inventory, consistent valuation methods and reliable, auditable data. Without an integrated system, the risk of discrepancies, corrections and administrative rework increases significantly.

ERP: the element that transforms stock management

By centralising the entire operation in a single ERP, every receipt, sale, transfer or consumption automatically updates stock in real time. Management then has:

• Control by warehouse and location

• Traceability by batch or serial number

• Automatic replenishment based on minimum levels and consumption history

• Direct integration with purchasing, logistics, sales, finance and accounting

• Permanent inventory and automatic stock valuation, ready for tax compliance

   

This means eliminating duplicate records, reducing manual tasks and ensuring consistent information across all areas.

The result is greater operational rigour, faster stocktakes, fewer administrative errors and decisions based on consistent data.

As a Cegid Partner Gold, Openlimits has proven experience in implementing, configuring and supporting the Cegid Evolution ERP, ensuring adoption tailored to each business's processes and ongoing support after go-live.

We know how to turn inventory into a strategic, predictable asset - not a cost centre.

Want to regain control, rigour and predictability over your stock?

Talk to us!

Written by:
Openlimits

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