What action can increase the efficiency of inventory management in SAP S/4HANA?

Real-time inventory tracking significantly enhances the efficiency of inventory management in SAP S/4HANA. This functionality allows for continuous visibility into inventory levels, enabling businesses to make informed decisions based on actual stock availability rather than relying on historical data. By tracking inventory in real-time, organizations can respond quickly to changes in demand, minimize stockouts or overstock situations, and optimize reorder points.

In contrast, manual stock adjustments can introduce human error and may not reflect the true state of inventory, leading to discrepancies. Static inventory reports lack the dynamism needed for effective decision-making, as they do not provide up-to-date information on stock levels. Yearly stocktaking, while useful for reconciling records, occurs infrequently and can lead to missed opportunities for optimization throughout the year. Hence, real-time tracking is vital for agile inventory management and better overall operational efficiency.