Purchasing and selling inventory is an important component of many equipment rental companies. In some cases, it represents the dominant business group and rentals is only a sideline, albeit an important one.
A major benefit to an equipment rental solution in Microsoft Dynamics NAV or a similar product is its built-in capability to handle inventory purchasing, sales order, advanced warehousing, and manufacturing. Optional add-on’s offer the ability to build a lean inventory management system based on a choice of algorithms to match inventory stocking levels to seasonal fluctuations and actual demand by continuously monitoring sales, service, and manufacturing activity.
In the case of Microsoft Dynamics NAV, options exist for determining the replenishment strategy for inventory including the major options of purchase or build. Once that has been determined there are extensive options setting parameters such as minimum quantity, safety stock, lead times, ordering parameters, dampeners, and more. Having a built-in manufacturing module allows inventory to be involved in Materials Requirements Planning (MRP) processes with the automatic determination of purchase or build lead times and required quantities. For companies with simplified assembly requirements, there is an assembly module available for fulfillment of sales orders or creation of inventory stock. Default vendors and vendor part numbers shorten the ordering process through a requisition process. Cross references, substitutions, variants, and unlimited units of measure provide additional advanced functionality. Landed cost features allows additional costs to be included in the cost of inventory, even after the stock has been sold.
These are examples of the advanced functionality found in Microsoft Dynamics NAV that make it the world leader in the mid-market ERP space. We like to think of it as a solution with “90% of the functionality of a tier one product at 10% of the cost”.