For trading and manufacturing companies, storage costs often represent one of the largest hidden cost factors in daily business. The procurement of products and raw materials, the organization of efficient storage space, and the associated personnel costs add up to a considerable investment. In addition to the direct product costs, there are expenses for infrastructure, technology, and working hours, which are underestimated in many companies. Making these expenses visible lays the foundation for savings— and this is exactly where a modern ERP solution such as mx.ERP can help.
The role of ERP in inventory management
An enterprise resource planning system can not only digitally map warehouse processes, but also automate and optimize them. With integrated inventory management, automation technologies, and real-time data analysis, an ERP helps reduce inventory levels, improve throughput times, and avoid unnecessary costs. Read on to learn step by step how you can significantly reduce your warehouse costs with our mx.ERP.
How can modern ERP software help reduce storage costs?
1. Accurate demand forecasting – thanks to intelligent demand planning
A common reason for high storage costs is inaccurate estimation of the quantities actually required. With the help of intelligent algorithms — including AI-supported ones — historical data can be evaluated and future demand accurately predicted. This means you only order what is actually in demand — in the right quantity and at the right time. This reduces excess inventory, minimizes the risk of obsolete goods, and improves capital utilization.
2. Supplier connection via EDI – Automate orders efficiently
Traditional ordering processes via email or telephone are time-consuming and prone to errors. With mx.ERP, you can connect your suppliers directly via EDI (Electronic Data Interchange). This means that your suppliers' stock levels, delivery times, and prices are displayed in real time in the ERP system. Orders can be placed with just a few clicks. This not only saves you time, but also significantly reduces the error rate and delivery times.
3. Better purchase prices through intelligent order quantities
Those who plan their order quantities strategically often benefit from volume discounts. mx.ERP shows you your suppliers' discount scales – regardless of whether the data is maintained manually or retrieved automatically via the EDI interface. This allows you to optimize order quantities and reduce purchasing costs. In addition, if you regularly order large quantities, it may be worthwhile to negotiate specific prices with your suppliers.
4. Automated warehouse processes with the introduction of barcode scanners
Manual warehouse processes are error-prone and costly. With the introduction of barcode scanners in combination with mx.ERP, you can digitize your entire warehouse logistics — from goods receipt to stock transfers to goods issue. Every warehouse movement is automatically documented and the inventory is updated in real time. As a result, order picking is significantly simplified. Would you like to know which scanning method is best suited to your company? Here you will find a comparison between barcode scanners, Bluetooth devices, and smartphone apps with all their advantages and disadvantages.
👉 Read the article: Barcode scanner vs. Bluetooth vs. smartphone camera
5. Reduce storage costs through targeted inventory optimization
Unsold products often incur more costs than you might think: they take up space, incur storage fees, tie up capital — and in the worst case, they expire. With mx.ERP inventory analysis, you can see at a glance which items are not moving and how long they have been in stock. This allows you to take timely countermeasures, launch targeted campaigns, or adjust your storage strategy. Result: more space, fewer wright-offs, and lower costs.
6. Reduce labor costs through automated processes
The more manual steps there are in the warehouse, the higher the personnel costs. mx.ERP automates many of these processes: goods receipts, stock transfers, inventories, order picking — all of this can be done with software support, either partially or fully automatically. This reduces the workload on employees, allowing them to concentrate on value-adding activities. At the same time, process reliability increases and fewer errors occur.
7. Multi-warehouse capability and well-designed warehouse strategies
Companies with multiple warehouse locations or complex warehouse structures benefit from the multi-warehouse capability of mx.ERP. You can centrally manage inventories at different locations, coordinate stock transfers, and automatically implement warehouse strategies such as FIFO or LIFO. This helps to optimize warehouse costs across locations and avoid bottlenecks.
Conclusion: Automation reduces storage costs in the long term
A modern ERP system such as mx.ERP is much more than just an administrative tool — it is a strategic lever for increasing efficiency. Automation, data analysis, and transparent processes can permanently reduce storage costs
“In over 20 years of ERP experience, I have seen how automated processes can significantly reduce warehouse costs – often by up to 30%. Companies that invest in modern systems such as mx.ERP are much more competitive in the long term.”
Expert opinion – Gunther Rebhandl, Managing Director at Iptor Austria GmbH
💡 Together, we find solutions to your most complex challenges.
If you are interested in a no-obligation consultation or a live demo, please feel free to contact us. We will show you how to optimize your warehouse processes with mx.ERP – step by step.
