SME’s in Malaysia are embracing digital. We see significant signs that many companies are starting to embrace digital in the enterprise work space. Many companies are looking to embark at digitizing core processes where ERP is just not doing enough. For many SMEs in distribution and manufacturing, one of the core requirements is to accurately track inventory. Until current times, even with ERP, SMEs are using DO’s and Pick List to remove items from the warehouse either for production or shipment to customers. There is a strong demand for actual time reporting of inventory movements. As more and more companies implement batch and serial tracking of materials and finished products, the volume of information to transform from paper to digital is too huge and often prone to error.
As such SMEs are now turning to mobile inventory where information are handled in actual time using mobile devices. This could include a combination of scanning and direct entry of transactions into the ERP database. Therefore inventory balances and movements are tracked in actual time basis. This method of digitization removes the need for paper pick list; therefore removing the need to transform information from paper into system. Every piece of material requested by production is accounted for instantly; every batch of finished products delivered to customer are accurately identified. This transformation usually yields significant cost savings as SMEs are able to have near 100% inventory accuracy.
With such accuracy SMEs are able to better develop and deploy smart inventory management policies. This could mean lowe stock holdings as they are able to adjust downwards stock holding policies for slow moving items and increase stock holdings for hot items in order to provide customers a better experience. This is the sign of take off towards the digital age for Malaysian SMEs.