The industry has requested the government for more handholding to clear tax-related confusions and GST filing. Tax compliance deadline extension has also been requested.
WHAT ARE THE REQUESTS?
The finance ministry has been approached by the industries to provide clarity, speed up the processes, and also provide more handholding on the numerous tax issues. With the sudden economic changes and all the uncertainty, the major industry bodies have approached the ministry to ease tax issues and requesting more handholding. They have also requested an extension of the deadline in filing income tax and other GST filings under the Income Tax act.
“Unresolved Issues with the Input Tax credit, QRMP, GST returns prevail, and it is important that the government facilitates industries in doing business. The importance of addressing these issues with the ministry in the interest of Trade and Industry cannot be overstated” said Sanjay Agarwal, President, PHD Chamber, stated. (Source: moneycontrol)
WHY IS IT SO IMPORTANT?
Incorrect records may lead to erroneous taxation, causing major discrepancies amongst companies. These codes, though in use earlier, the compulsion to adhere to them during the tax inflation has led to the growth of this confusion. No clarity from the government on which code applies for which product/service may lead to disputes and penalty.
Those who aren’t tech-savvy are generally confused by the heavy Inventory Management terminologies used. Today we are going to decouple all the essential terms and understand their applications in Inventory Management. If new to Inventory Management, don’t forget to read: Inventory Management 101: Small Business Guide.
MAJOR CONSTRAINTS IN INVENTORY MANAGEMENT
Inventory: Defined as the complete list of items bought with the company’s working capital such as property, goods in stock, or the contents in a building.
Operational Expenses: The firm’s expenditure in the sale of the inventory in stock. In simple words, the total cost in selling the merchandise purchased and stored by the firm.
Throughput: The output from the sales made, which compensate and generate capital, and lead time for the working capital expenditure in the whole supply chain process.
These trios are the heart of Inventory Management. They are essential to profit and generate more working capital to initiate better management and compensate for effective Inventory Management. Sustaining a firm’s growth is possible only if at least two of these constraints are managed in an informed and correct manner.
INVENTORY TERMS
1. Inventory Control: This involves accounting and the act of physically counting the stock ledger and ensuring they match with the actual data values. The counting of inventory assets and site control fall under this category.
Stock Take Policies: It involves the processing and recording the amount of inventory held by the firm. This policy applies to Inventory Managers responsible for managing the stocks. They do not take down the data in the databases manually, but automation software like Imprezz play a crucial role in reducing effort and time, hence increasing productivity. The necessity of such software is seen in accounting because of the reduction in mistakes and the short duration of undertaking such mechanical tasks, which take hours for a human.
Kanban: It is an Inventory Management Technique involving Just-In-Time and lean manufacturing processes. It is, in short, a scheduling system for organising the supply chain. This process is used by managers to track the progress of the inventory, hence provided a clear view of the entire supply chain.
Perpetual Inventory System (ERP): Enterprise Resource Planning refers to the various software and technologies used to plan and manage the supply chain and manufacturing effectively. It is a real-time process mediated by advanced software like that of Imprezz.
Dead Stock Management: Inventory with no turnover, which has undergone no sales, is termed dead stock. Forgotten and neglected dead stock in the warehouse is the direct result of poor warehouse management. Deadstock management must be implemented with proper technologies to reduce the excess useless stock.
2. Inventory Planning:With the suddenness of the pandemic, the firms which had the perfect planning for unforeseen events are the ones who have gained an edge. Planning according to the future demand forecast and stocking accordingly falls under Inventory Planning.
ABC Classification: Classifying the inventory based on priority is one of the most effective Inventory Management Techniques. This includes giving more priority to the stocks yielding more profit and giving the least priority to the one forecasted to be deadstock. This reduces the overstocking of the unwanted stocks and rich storage of the most profitable inventory in the warehouse.
Age Reserve Planning: Inventory Reserve is a contra asset of a firm’s balance sheet and ledger files, made in anticipation of forecasting inventory potential to be deadstock. This extra list of Inventory Reserve Planning will greatly help the firm curb the loss in working capital due to overstocking.
Supply-Demand Planning: Self-explanatory name involves carefully analyzing all the trends in supply-demand ratio using automation software and managing inventory accordingly. Analyzing Inventory levels is a must for this step. This is almost similar to Economic Order Quantity (EOQ)
3. Inventory Management Processes:This is the complete integrated management system of the supply chain, keeping in mind the above two processes. It incorporates advanced software of Inventory Management, automation technologies, and other software like IIOT and AI.
Strategic Stocking Levels: Stocking strategy enables moving inventory to the active inventory category, ensuring the firm stocks the right inventory and optimises the process. This means there are no discrepancies of over or understocking due to the lack of transparency or a good centralized communication between the levels of the business.
Integrated Business Planning: This is a process of maximizing profit/cash flow while minimizing risk using financial and operational optimization technologies. This uses strategy and mapping technologies like that of Imprezz, which provides a detailed strategy chart of each inventory and the specifications of the article in the same place. In other words, each inventory is tracked real-time using the software for creating the scope of reorder point.
Inventory Optimization: Taking the supply and demand volatility into account, the most effective balancing of capital investment and service-level goals over large quantities of stock is called Inventory Optimization. This smoothens the functioning of the supply chain, and Inventory Optimization helps increase the percentage yield with the expenditure of the same working capital.
Strategic Sourcing: The approach by a business to consolidate the purchasing power to find the best possible sales deal and the best return for the inventory. This takes place at the final part of the supply chain, i.e. the sales and marketing department. It is given so much importance because the return on investment made so much on the inventory and management software are decided based on strategic sourcing.
Sales and Operations Planning: This process involves all the levels of a business working together through a centralised system. The smooth functioning of the supply chain is solely dependent on this step, and good software like that of Imprezz provides a well-integrated communication system for the same. Firms must focus on creating a single production plan and adhere to it carefully, right from sales order/purchase order.
Inventory Carrying Cost Strategy: Inventory carrying cost is the gross net amount spent on storing the inventory. It includes intangibles like depreciation and lost opportunity cost and the cost of storing finished goods in the warehouse. This strategy revolves around warehouse management and dead stock management.
INVENTORY MANAGEMENT INDICATORS
Managing inventory is not a single step process. There are several indications that provide an idea about the efficiency of Inventory management in a firm. Reducing such indicators, which are liability, is the key to implement a great Inventory Management Strategy. These unproductive burdens are mentioned below, and companies must take extra care to remove them from the supply chain.
Spoilage:Spoilage are goods harmful goods which cannot be moved further lest it harms the consumer. Reducing spoilage must be made an integral part of an efficient supply chain.
Dead Stock:Products that are no longer in demand and are waiting for an ambitious customer to buy them. This deadstock must be reduced, lest huge losses due to overstocking can be incurred by the firm. Good Warehouse Management Software like that of Imprezz are the correct choice. People generally confuse it with safety stock, but safety stock is an asset rather than a liability.
Ageing Stock:Stocks whose current price is no longer appealing to the customer are called ageing stocks. Providing lucrative deals help manage the ageing stocks, leading the customer to buy these stocks in bulk. Ageing stocks are like a time bomb. The more the delay, the cheaper it must be sold. What must be taken care of is none of the stock becomes ageing stock, and the solution is simple. Use Business analytics tools like Imprezz, which keep track of each article in detail.
Unproductive Cash Usage:Creative ways must be devised, which ensures the burden of carrying extra inventory is lifted from your shoulders. It can be achieved in several ways:
Dropshipping: A passive method where the third party, i.e. the vendor, ships the inventory directly on your behalf, hence reducing storage costs of raw materials.
Consigned Inventory: The third party, i.e. the suppliers, retain the inventory ownership till the consumption of the supplies by the customer. This reduces the chances of stocks getting converted to ageing stocks.
Cross-Dock: The technique in which the finished product doesn’t even set foot in your warehouse, but there is a direct transfer of goods right from the inbound trailer to the outbound trailer, making the handling cost negligible.
The importance of the Inventory Management system is already illustrated in the blog: Inventory Management 101: Small Business Guide. Yet, this blog instigates another line of thinking: should we focus on Inventory Management or Inventory Minimizing? This debatable topic needs a detailed analysis from your end, what kind of business you are running, the logistical and storage cost accosted with your product, and many other factors.
Use Imprezz Inventory Management Software to get a detailed idea of which works best for you and which you must go with. To facilitate this food for thought, a 14 day trial period has been provided to ponder which works best for your business and the line of action you can take. To learn from experts, try reading: A Complete Guide To Inventory Management.
As we have seen in all our previous blogs (Inventory Management 101: Small Business Guide and Inventory Management Techniques: 2021 Edition) that inventory management is a visual analyser used to track inventory in real-time. Certain good practices in Inventory Management processes will help you best utilise cloud computing and analytics software and hence curb losses due to mismanagement.
1. KNOWING THE CORRECT INVENTORY FOR YOUR BUSINESS
Each business has a different inventory set that correctly suits its needs and has the most effective management techniques curated for the same. So it is crucial to identify the type of inventory that suits best your business and how you order it.
We have discussed the various inventory management techniques here, but let’s recap two of them in brief:
Continuous Evaluation: With a continuous evaluation review system, we optimise our order according to the exact amount needed. This uses the pull/JIT method as described here. This method requires critical evaluation and monitoring, and the moment the stock is on the verge of getting over, it must be replenished. This calls for some advanced monitoring software like Imprezz, which provides clear visibility on each inventory and provides a real-time tracking facility.
Periodic Evaluation: This follows the inventory management technique of emergency stocking, as discussed here. The stocking is done after a decided period and evaluated at the end of the period. The excess stock determines the quantity for the next quarter or serves as safety stock. There is no clear planning and no necessity to closely monitor each stock, hence not optimising the inventory in the best possible way.
2. IMPLEMENT CENTRAL COUNTING PRINCIPLE
To find discrepancies in the supply chain, this step is the most effective one. Central counting is so effective because it provides a birds-eye-view over the complete functioning of the inventory levels/stock levels, hence easily spot the loopholes and correct them accordingly. What are the factors to keep in mind?
Frequency: Decide the frequency of counting and increase it to enhance the probability of finding intricate faults, easily missed through rare counting.
Strategise: Demarcating a clear strategy plays an important role to improve the effectiveness of counting. “Failing to plan is planning to fail.” sales order/purchase order too plays an important role here.
Authority: Someone with a great sense of work ethics and reliability must be made in charge of counting rounds because even a single mistake could directly impact the firm’s total cost.
3. WAREHOUSE MANAGEMENT
Most businesses neglect this crucial step, but its importance cannot be undermined. The storage of the raw materials go through a series of common problems:
High Storage cost: Following the Economic Order Quantity (EOQ) or Just-In-Time inventory management techniques are the best methods to solve this problem. Have trouble following? Check out: Inventory Management Techniques: 2021 Editionto familiarise yourself with all the various techniques and terminologies. The amount of inventory must be carefully tracked using charts and other strategy tools.
The possibility of becoming Ageing stock: This is a critical situation when the final product prices are not lucrative enough for the customer to buy them, making them a potential deadstock. To curb this issue, a systematic chart must be made using software like Imprezz to keep a check on the latest price, the rate of inflation, and whether a stock is turning into an ageing stock. Sell them at lower prices to prevent them from becoming deadstock.
Stocks turning into deadstock:This is the worst possible case where there is no sale of the inventory, and not many people are interested in the particular stock. A proper warehouse management system like Imprezz is absolutely critical because this problem leads to a drastic loss in working capital. The above-discussed Inventory Management techniques such as JIT and EOQ are practical too.
4. QUALITY AND INVENTORY CONTROL
In any business, customer satisfaction is of the utmost importance. What’s more important is to impress the customer through the exemplary quality of the finished products and match the exact descriptions mentioned in the product description.
Making a checklist mentioning all the intricate details of the things to be kept in mind is the best possible way of quality control for finished goods. Some pointers can be:
Damage or flaws: Check for dents, deformities, or damaged spare parts.
Product Details: Includes colour, pattern, shape and looks.
Cost and warranty agreements: These must be strictly adhered to, and the details must specifically be mentioned beside each product.
These are not just the only parameters that matter. Storing the raw materials in warehouses have their own set of problems. These include fluctuating temperature, light and humidity.
5. OPTIMIZATION OF INVENTORY MANAGEMENT SYSTEM
Inventory management is the heart of a business and relies on the rich supply of product and the best possible management of these inventories. So why is inventory management optimisation important?
Fluctuating Customer Demands:During the current pandemic situation, customers have become more selective in buying products, and their demands have become more abrupt than ever before. The rise of e-commerce has been a significant stimulus in this change, and hence we must be careful in managing inventory to curb the direct impact on our working capital.
Increasing Competition:Each business has its own set of competitors, and the pandemic has led to an even set field due to the compulsion in digitalising all the system. Reorder point getting affected is a major concern. What matters now is how well a business manages its inventory through an informed and correct way using advanced software like Imprezz. Want to take informed decision taking help from experts? Read: Tutorial: How to use Imprezz inventory management tool?
Reduced Working Capital: The Covid-19 pandemic hit every business adversely, and the working capital of every firm has diminished drastically. Spending most of it on inventory makes inventory management the heart of growing the business without incurring losses. Having to deal with loss in the current situation and restricted cash flow is the worst possible nightmare for any business, and the only way to evade it is Inventory Management optimisation.
6. AUTOMATE EVERYTHING POSSIBLE
Complex tasks can easily be automated using Automation technologies like Imprezz. This ensures enhanced efficiency with less human dependency, leading to less time wasted in managing mechanical, repetitive tasks, where that workforce and time can be utilised in other productive tasks. To know more about automation, check out:How to Leverage Accounting Automation? – Small Business Guide. The achievable aspects are:
Advanced Inventory management techniques include ABC categorizing, following FIFO and LIFO methods of inventory management. If you want to learn the basics, do check out: Inventory Management Techniques: 2021 Edition.
ABC Categorizing: This involves planning and giving priority according to the profits yielded by the particular inventory, keeping the topmost priority one as A and the least priority one as C. This helps in reducing wastage of the high demand and the most costly inventories, hence yielding more profit for the firm.
FIFO: First-In-First-Out is the technique of selling the one reaching first, hence reducing the chances of inventory turning into ageing stock.
LIFO: Last-In-First-Out is the technique opposite to that of FIFO where the last item is sold first, hence none of the items turn into deadstock, generating lead time.
HOW CAN IMPREZZ HELP ME IN INVENTORY MANAGEMENT?
Software made by the experts, it is adept in solving all these common problems strategically and in a systematic manner. Each of the best practices mentioned above is followed by Imprezz and curated by experts in Inventory management, the simple user interface makes Inventory tracking a cakewalk.
Imprezz Inventory management software clubbed with Accounting Automation technology can provide the much-needed boost to your business, providing an edge over your competitors. The informed and correct use of the software is the key to have an edge in these trying times of online business. Let us help you, sign up for a free trial of 14 days to feel the rush of scaling up!
Inventory Management or Supply Chain Management has evolved a lot throughout the years, thanks to the advent of advanced technologies like Automation, Data Analytics, IIOT, and Artificial Intelligence. The sudden pandemic of Covid-19 struck the businesses heavily due to unforeseen complex issues like mandatory digitalization, work from home, inventory and warehouse management failure, etc.
Click Here to learn more about Inventory Management in a detailed and comprehensive manner.
HOW DID COVID-19 IMPACT INVENTORY MANAGEMENT FOR BUSINESSES?
Improvement in inventory management systems and fluctuating customer demands are reshaping and influencing the supply chain. The lockdown has made customers rely primarily on digital means and have instigated specificity in their requirements. 86% of small businesses have adopted new techniques and developed new products due to the coronavirus. (Source: Small business economy survey). The need for the hour is for the companies to adhere to the latest market requirements.
However, the point to bear in mind is that the transition would be far from being smooth. Adapting to the new technologies, investing in tech-forward and data-driven software, and the exponential rise to competition are just a few factors forming hurdles to business growth.
Let us see how we can gain the upper hand through efficient Inventory Management Techniques.
CHANGES IN INVENTORY MANAGEMENT DUE TO THE PANDEMIC
The Rise of Automation
The need to achieve the same targets with fewer employees has brought about the inherent need for automation, and post-pandemic conditions have necessitated the same.
The perks of increased accuracy with less labor have made automation necessary for any kind of business to cope with the ever-increasing competition, ignoring the hefty price tag associated with it. Read more about automation here: How to Select the Best Accounting Software?
Analyzing Returns
The lockdown has forced consumers to rely handsomely on e-commerce sites, giving them a fantastic push due to the enormous returns in online purchases. Returns seem to be posing many difficulties for small businesses, especially ones who had not set up online inventories, such as brick and mortar retailers all across India.
Well-informed businesses are working smart to reshape technologies for their short and long-term goals. Automation technologies like Imprezz automation software are the perfect tool for market return and foot traffic analysis for long-term planning.
Warehouse Management
The conflicting customer demands have brought about new and complex discrepancies such as higher returns. This leads to overstocking and capacity shortage in warehouses. The influx of inventory has made warehouse managers work tirelessly to solve the capacity issues and maintain the supply chain’s flow in order to preserve reorder points.
28% were struck with shortages and had to find alternate sourcing options (source: RetailNext). This shows that the need for the hour is a perfect Warehouse management system. This involves integrating automation software with proper deployment of correct Inventory Management Techniques.
INNOVATIVE CHANGES TO GAIN AN EDGE
1. DIVERSIFICATION OF SUPPLIERS
“Flexibility and resilience” have become the two key features in supply chain selection post-Covid-19. The businesses which can quickly look for alternative suppliers, distributors, and shipment facilitators are the ones who can gain an edge over their competitors.
Issue: Reliance on a single supplier causes heavy losses, which most businesses faced solely dependent on Chinese suppliers. Geographically consolidation of suppliers is a constant worry for companies because if they come to an abrupt halt, no other alternative had been pre-decided.
Solution: Detailed Supply chain mapping is a must for such a scenario. It requires heavy investment but can give high security during emergencies and curtail the constant source of worry. Automation software like Imprezz is a great way to plan and analyze alternate sources, get their data, and reduce absolute reliance on a selected few.
2. IMPROVED CLARITY AND VISIBILITY
Issue: Post pandemic, more flexibility shall be expected in the supply chain. Corporations will tend to perform more visibility and stress tests to check for resilience and flexibility in inventory management. So businesses must plan ahead for the unexpected, understand the weak links and work on the potential vulnerabilities.
Solution: Work more on innovative ideas and identify new options through inventory management software like that of Imprezz. Making payments payable in installments post covid is a great way to generate more traction and appeal, possibly through the inventory accounting automation software of Imprezz.
Issue: The sheer suddenness of the global pandemic brought about brand-new challenges not seen before, and these challenges were unforeseen. This created a considerable loss of working capital and precious time in identifying and efficiently tackling them.
Efficient tracking and managing inventory is the most crucial part of a business, often not paid much attention. Inventory control is the throbbing heart of a company, which takes up most of the working capital, and causes drastic loss if not managed properly. 25% more retailers and manufacturers are investing in better technology for warehouse management (Source: Skunexus statistics). This shows the necessity of new and improved technology.
Solution: AI and IIoT are the latest inventory management software where real-time tracking and a centralized database are created. Deployment of such services is quite complex, but thanks to Inventory Management Software like Imprezz, it has become a breeze to use advanced technologies for our benefit.
These technologies help track inventory progress in the supply chain, hence reducing the most common problems of over or under-stocking (stock levels) of finished goods. Read this article to know more about inventory management and inventory levels: Inventory Management 101: Small Business Guide
4. FOLLOW THE CORRECT INVENTORY MANAGEMENT TECHNIQUES
43% of retailers consider inventory management as their number one day-to-day challenge (source: RepricerExpress)
Here are the inventory management techniques which will help in having complete control over your inventory:
Just-in-time (JIT) inventory: Involves storing and maintaining as little inventory as possible in the warehouse, minimizing dead stock. This reduces the holding cost and maintenance and avoiding the unnecessary hassles of warehouse management.
ABC inventory management: This technique involves categorizing inventory in terms of priority and sorting them into categories A, B, and C. A being the most significant asset bringing the most profit, and C being the least priority.
Dropshipping: Outsourcing the stock and never actually storing the raw material or inventory in their own warehouse forms the basis of dropshipping. Business outsourcing never actually has any contact with the merchandise, hence reducing lead time.
Economic Order Quantity (EOQ):Ordering the ideal quantity is the most economical way of going through inventory management during sales orders. It involves careful analysis of the inventory cost, the storage cost, and the exact demand and supply ratio. This is possible through correctly maintaining a purchase order.
Safety Stock Inventory: This technique involves ordering stock above the predicted demand. This is a safeguard against fluctuating customer demands or incorrect forecasting.
LIFO and FIFO:First in, First out is selling the older inventory first, targetted at keeping the stock fresh. Last in First out targets selling the newest product first, which prevents finished products from getting spoiled.
Six Sigma and Lean Six Sigma:Brand of teaching providing tools for decreasing excess inventory and improving strategies to increase profit through cash flow.
A STEP-BY-STEP GUIDE FROM IMPREZZ
Step1: Analyse loopholes and vulnerabilities in the supply chain process through data analytics software. This software maintains a list of inventory and the smooth progress from one step to the other.
Step2: Consolidate suppliers, distributors, and transporters to not face problems due to regional discrepancies. This issue is widely seen in businesses relying solely on Chinese manufacturers. Software like that of Imprezz analyses the economic problems on GST of different suppliers, accounting details finding the most suitable suppliers for you.
Step3: Use advanced tracking software to track your inventories in real-time, like Imprezz Inventory Management software. Using such software in an informed manner helps gain an edge over other competitors.
Step4: After signing up on Imprezz, build a detailed inventory chart using the easy-to-use friendly interface to manage the warehouse and use the ABC categorizing technique most effectively.
Step5: Use the central database of Imprezz to communicate effectively with all the business levels and maintain a smooth supply chain flow. This requires little effort from your side, and let Imprezz manage it for you.
Sign up with Imprezz to kickstart your business, gain an edge over competitors and scale up your business like never before.
This article will guide you through the different facets of Inventory Management and why it is the most crucial tool to scale up a business. First, let us try to answer the following question:
What makes a business successful? Is it to have a wonderful centralized communication system? Balanced Stock levels so that none of the products remain unadhered? Or Is it to have a bird’s eye view of all the segments’ proper functioning, without the unnecessary hassles of inefficient tracking progress? Bingo!
To understand Inventory Management in a simple way, let’s take an analogy of our ladder. We do like it to be organized and well-stocked, with our favorite food and drinks at their usual places. We want to keep a check on all the ingredients for our favorite recipes, prepared dishes, and quantity of leftovers from yesterday’s dinner party so as not to cook extra the next day!
“The vital essence of any business is to have a well-managed team, well-stocked products, but not in excess.”
Unfortunately, in a business, especially a small business on the exponential rise in growth, we can’t keep a mental record of the new inventories and the demand and supply ratio. Allocating inventories with clear visibility to each channel is vital. This is possible only if we know the exact amount of stocks on hand and manage it with ease.
WHY IS INVENTORY MANAGEMENT IMPORTANT FOR SMALL BUSINESSES?
We resort to good Inventory Management software to help us keep track of everything going on effortlessly. The massive bulk of inventories create a plethora of discrepancies, such as shortage or excess, leading to the disruption of management. With no inventory tracking, the chaos leads to heavy damage in profit.
Important for all types of product-based businesses. Inventory management is the tracking step in the supply chain where the stock supplies’ entry and exit are tracked. Using barcode scanners has become most common. The latest emerging field of Computer Science deals with the Industrial Internet of Things (IIOT). It tracks the inventory in real-time and self sufficiently, it is highly reliable and precise.
So this emphasizes the need to track inventory as accurately as possible. No matter if it is an e-commerce company, a retail store, or a small tech start-up. In other words, inventory management is a tool suited for all types of businesses where there is a need for proper management and systematic tracking of inventory.
WHAT ARE FOUR MAIN CATEGORIES OF INVENTORY MANAGEMENT?
The four categories of Inventory management are:
Raw materials: Inventory that has not yet been processed and is in the staging area. The raw materials have to be transformed further to the finished good. Maintaining a detailed purchase order is a must in order to track the progress.
Processing Inventory: Inventory which is a work-in-progress to be morphed to the finished product.
Finished Product: The inventory has undergone the process through the supply chain and is now handed over to the sales team. The sales team is supposed to draft a sales order and sync it with the central system.
Maintenance, Repair, Operation (MRO) goods: The supporting goods are prospects for future purchases. This creates a reorder point and prospective clients need post-purchase services.
WHAT IS THE RELATION OF SUPPLY CHAIN PROCESS WITH INVENTORY MANAGEMENT?
Let us look at the process in the Supply Chain and how demand and supply are managed. Whenever a sale is made, it is recorded, and the item is removed from the warehouse. The void created is the demand, and if synchronized with a centralized database, real-time feedback can help fill the gap. So there remains no scope of scarcity or excess inventory.
Here comes the role of Inventory management software. Having efficient communication with all the business sectors, right from sales to the production level, ensures the bridging of the gap in supply and demand. So this ensures smooth functioning.
WHY INVENTORY MANAGEMENT IS IMPORTANT FOR WAREHOUSE MANAGEMENT?
Smooth Functioning. Inventory management processes play a crucial role in laying the foundation building blocks in order to have a smooth journey ahead. There is the smooth functioning of the supply chain. Various problems like repeated orders, shipment issues, under or overstocks, and so on can easily be avoided by keeping track through Imprezz inventory software.
Automate repetitive tasks. Improper Warehouse management leads to messy warehouses. Mis-shipment and repeated orders are the subsets of improper management. It can easily be avoided using Imprezz Inventory management tools and automation techniques. These techniques automate the repetitive tasks of maintaining the database for warehouses, which can smoothen warehouse management. So even emergency situations can’t hinder the production scale with the availability of safety stock.
Avoid Losses. Stock levels lead to drastic losses because the lion’s share of the working capital and total cost is allocated for inventory.
WHAT TO LOOK FOR IN A GOOD INVENTORY MANAGEMENT SOFTWARE?
Businesses invest almost 80-90% of their capital in inventories. Keeping inventory over or understocked leads to drastic losses because of the loss of working capital. This creates the need for good Inventory Management Software.
The objectives of Good Inventory Management Software are:
Continuous supply of inventory so that during high demand and supply ratio, the production does not suffer
To have an on-demand supply of stocks in case of emergency
Record the amount of inventory and manage it
Optimizing the cost of production, maintenance, storage cost, sales, cash flow, and other costs indulged with scaling.
To synchronize ledger entries with physical inventories available in the warehouse.
In order to maintain stability in price and systematic record through accounting automation software.
HOW GOOD INVENTORY MANAGEMENT SOFTWARE ATTRACT INVESTORS?
Small businesses need investors to invest in scaling up their business. In order to get funds, businesses can offer Initial Public Offering (IPO) only after a certain level. So the start-ups have toattract investors to invest in their business for them to grow.
Investors need a clear picture of the management and the supply chain. Especially the details of accounting with the integration of all levels of the business breathing as a single entity. This is not feasible on spreadsheets or any software not having a centralized relation.
Therefore to provide accurate accounting data and a clear overview, an inventory management system becomes necessary.
Inventory, being the largest shareholder of the business’ working capital, inventory control is the most crucial and delicate part of the entire supply chain and must be managed with utmost care. Common problems of stocking and mis-shipment problems lead to a considerable loss in revenue. This seriously impacts the growth of a small business.
Sign up with a reliable and trusted inventory management system like that of Imprezz. This is because it deals right from the basics of Inventory Management all the way up to advanced features of automation technologies using IIOT. So we have to use the software in an informed and correct manner to have an edge and make them the catalysts to reach new heights during the present age of technological advancements.
One of theperfect software for small businesses to balance all inventory levels mentioned above is the Imprezz Inventory management software. Hence, having a user-friendly interface with all the tools for a quick deployment is necessary for all start-ups, small and medium businesses to take up inventory management techniques, optimizing lead time. All the necessary features are present – ranging from warehouse management to accounting automation, leaving no stones unturned.
Do you find it intimidating to send payment reminders?
But in the ideal business model, you have to ask for payments against the product or service offered to keep your cash flow healthy. Having a system to send payment reminders is the first step in making it a habit.
With the automated payment reminder tool from Imprezz, you can send reminders to your client for the payments due and write customized payment reminder emails to them.
No one likes haggling for late payments. However, many solopreneurs and small business owners have to constantly send reminders to the clients for the payment due. Apart from sending reminders for the outstanding balance, the payment reminders help you clear invoicing errors or payment issues. Sending a reminder is a great way to inform your client about upcoming measures like late fees or additional charges.
Sending payment reminders doesn’t have to be a complex process or eat up a lot of your time and efforts. Having a platform to sell products, an automated tool to send quotations and invoices is great. With everything getting easy, it’s time to move out of sending emails, SMS, or even making calls, every time client forgets to make the payment.
Late payments can fret anyone whether you run a business or work as a salaried employee. But sending payment reminders doesn’t have to be tough or sound harsh. Sometimes the delay in payments can be followed by multiple reasons. Remember it is professional courtesy to send reminders as long as they’re worded nicely and sent promptly.
It’s ideal to send payment reminders shortly before the due date, one shortly after the due date is over. Later follow up with the client on basis of your payment terms i.e the payment will be cleared with 14 days of the due date.
A step by step guide to sending automated payment reminders with Imprezz
Let’s understand how the process of payment reminders look for you. Checking with your clients through e-mails. What if they don’t read your emails? Making constant calls and SMS to remind them of the payments overdue. It seems to be a time-consuming task where you chase your clients constantly and ghost them to make the payments.
This might not be an ideal case for the other party. The client might be swamped with some work, he might have taken some time off or anything. Following him throughout can worsen the situation.
Imprezz automation tool helps you get rid of this tedious task, create customized emails and even send payment reminders on your behalf. Additionally, you can find e-mail templates and other features on the tool.
Let’s walk through this tool and understand how it works.
1.Refer Invoices
Once you login to the Imprezz, you’ll be directed to the main page. Locate the option of ‘Invocies’ and click it.
If you have created invoices, great. Otherwise, you can create one with this feature. Mention the invoice number, the invoice amount, and the due date while sending the invoice to the client. Mention the products or services for which the invoice has been sent. It will help the client to access the invoice and pay faster.
Once you enter the relevant information, the tool offers you an option to set the payment terms. Imprezz offers multiple options for payment terms to businesses and individuals while creating an invoice. These payment terms have a huge impact on the payment process and make the client aware of when the invoices have to be cleared.
Select the option ‘payable upon receipt of invoice‘ if you want to get the invoice cleared immediately. You can select the number of days after which the invoice will be due after the receipt of the bill. If you want the client to make an advance payment, choose the option payable in advance. Likewise, you can choose a payment method that you have discussed with the client. If you have already forecasted the time for payments, you can select the option ‘not specified‘.
When the payment is 14 days overdue, you are can add interest and compensation to the payment amount. Update the payment terms for reference of the client and send a clear message about the legal measures you can take if the payment is not made on the due date.
2.Set automating payment reminders
Once you create invoices and save them next move to the feature of recurring payments. You will be asked to create a recurring invoice. Mention the date when the initial invoice was sent and when you want to send the reminder i.e weekly, 14 days, 2-months, 3-months, etc. Next, enter the email of the recipient, so that the tool sends an automated reminder on the email.
Once you enter the email of the recipient, you’ll find an option for more settings. This option allows you to customize your subject line and the message.
While creating a recurring invoice, you’ll be asked to enter all the details such as the name of the customer, invoice no., article details.
Once you create a recurring invoice and save the details, you’ll be redirected to a subscription account. On the top right bottom, you’ll find two options: Edit and Start subscription.
If you click the Edit option it will allow you to make changes to the recurring invoice. The subscription button allows you to send reminders as per the selected duration i.e 7 days.
Remember: Once you select the subscription button, you won’t be able to make edits to the recurring invoice. If you want to end your subscription, there’s an option for that too.
The recurring payment setting allows you to create individual payment reminder invoices. The recurring settings automatically send the invoice emails to the client on a set due date.
If required you can change the settings for discounts etc. The easy-to-handle feature minimizes the workload and helps to receive your payment quickly.
Any questions?
What else would you use when it comes to payment, Imprezz has got multiple features that can help you send quotations, generate invoices, send purchase orders, and manage inventory.
The automated cloud-based software is easy to use and can be accessed globally. The tool helps you schedule payment reminders automatically which are sent at the right time. It helps you save a lot of time, effort and significantly reduce the risk of late payments.
Test Imprezz for free: Simply register with your e-mail address and password – and you can access all the features immediately.
Inventory management is important for the smooth functioning of your business and to keep your stock levels in control. Both excessive and surplus inventory can disrupt the financial flow of your business and pose a serious threat to its liquidity position. Inventory optimization is important to ensure that you have minimum levels of inventory to meet the demand of end-users. It helps to manage the business risk and reduce the holding cost. In this blog, we’ll walk through the best inventory management software.
Every organization, no matter how small or big have inventory in the form of raw materials, work-in-progress, finished goods. It might include something as small as a needle or can be assembling units of a car. Hence, it is important for companies to effectively manage their inventory.
Mishandling of inventory or laxness in evaluating your inventory can largely hamper the functioning of your business. It might further propel the situation of inventory surplus or shortage leading to huge financial losses. For business, it is the loss in productivity and sale.
Companies should introduce inventory management software free that helps them reduce the possibilities of deadlocks, spillage, and unwanted storage and holding cost. Automating the process means reducing the chances of human errors and saving the time and efforts of employees, who can now concentrate on the core competencies of the business.
Let us understand the situation in a typical business setup.
Customer purchases product from you and you keep track of stock, the raw material to meet the demand of customers. In an ideal situation, you know what is the level of inventory and if you need more inventory to meet the demand of end-users or not. However, if there is no proper structure or coordination among manufacturers, suppliers, customers, and salespeople it might result in a situation where you either have excessive inventory or facing an inventory shortage. You might have inaccurate information regarding the stock levels or face poor customer satisfaction.
Types of Inventory Management Software
There are different types of inventory management software ranging from free to expensive ones. They don’t only differ in terms of cost but vary in terms of features, deployment methods, etc.
There are three main deployment methods of Inventory Management Software :
On-premise inventory management systems.
Software-as-a-service (SaaS) inventory management systems
The aim of every company is to meet the needs of its customer, offering the best customer satisfaction. There are many free and open-source inventory software that helps companies automate their inventory management process and meet the demands of their inventory.
Inventory management software helps your track your products, items, or assets, understand your storage needs and manage the stock levels in the company. It helps to save your time and efforts. A good inventory management software system should be able to couple your company’s strategic goals, sales, production, and materials requirement planning. It should help you automate the purchase based on the forecast of your sales order.
Best cloud inventory management software by Imprezz is a comprehensive tool that offers you all the features to streamline your inventory and create a seamless customer experience. The inventory management software for small businesses and beginners who want to effortlessly manage their inventory across multiple levels and channels.
All the companies that are anticipating huge growth and have large stock levels can rely on free inventory management software by Imprezz, which helps them automate the entire process and reduce human efforts.
Imprezz inventory evaluation tool is simple and easy to use. The tool has distinct features such as creating articles and tracking the stock movement.
Create a new article
The feature of the tool allows you to create a new article, add prices and information related to the article. Once you create an article, click the save button.
Article List
The option allows you to track all the articles in one place, instead of hunting them on the tool. Supposedly, you want to track a particular article, simply enter the name of the article in the search bar, it will automatically detect the article.
The option of an article list helps you track the current stock, which means the total items available in the inventory. It states the opening balance of the stock. You can even check the value of the current stock which is calculated on the basis of current stock * Average price. The best part of this option is that it allows you to ‘add or remove’ an article from the current stock.
Stock Movement
The feature of the inventory management tool allows you to track the purchase and sale of an individual article. Any action of the stock is reflected here. You can check the amount of stock purchased and sold here. Even if can track the historical cost, the value of a stock before any purchase or sale was made.
Conclusion
There is a huge demand for inventory management software in the market and is expected to grow tw0-fold in the next 5 years. The inventory management tool by Imprezz isn’t restricted to accountability but offers a source of competitive advantage in demand-driven organizations.
Buying behavior and demands are uncertain however investing in a good inventory management tool help you decide your action and plan well in advance. The software will help you in the automation of inventory management, result in cost reduction and save time and effort to walk through spreadsheets.
It’s best to try the Imprezz demo right away. Simply register with an e-mail address and password. And immediately the full range of functions is available to you free of charge.
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