From the above definition of inventory, you can list down the following:

What is inventory management process?

Since inventory becomes the epicentre of a trading business’ performance, it's imperative that there's a listing management process in situ . With this, you'll be ready to monitor and oversee purchases, to streamline business operations, maximise your return on investment (ROI), and minimise your cost. this will be easily achieved with a listing management software which will offer you accurate results for better business decisions.

Earlier, the traditional thanks to track inventory was to use pen and paper. Over a period of your time , businesses switched to spreadsheets, and most small businesses still manage their inventory within the same manner. However, because the business grows, it becomes next to impossible to continue using manual methods or spreadsheets, since a business owner will find yourself spending longer managing inventory instead of specialise in the general business. Also, inherently entering data by hand, is time consuming and error prone, and tends to be a repetitive task, which may easily be automated. most significantly , an efficient inventory management in today’s day and age demands a centralized database that's accessible to multiple resources in your business, across multiple locations and updates on a real-time basis.

How to choose the best inventory management process for your business?

Inventory management process could vary from company to company. counting on their line and size, the method to manage and track inventories differs. What’s important is to spot the simplest method for your business that might end in better performance of your company’s assets.

Choose a software that will help you gain better insights

Management of your inventory will have an immediate impact on the income of the business. Inefficiency in managing inventory will put your business at an obstacle . Inventories hold an enormous amount of your capital and stocking excess inventories implies that cash engaged . a bit like income , it can make or break your business. Getting maximum number of reports within a couple of clicks, won't only save your precious time and energy , but also remove any room for discrepancies. An intuitive business management software must allow you to handle real-time complexities with great flexibility. Here are a number of the ideas to settle on the simplest inventory management software for your business.

There are several sorts of internal control methods available and you'll choose the one which suits your business. regardless of which method you select , it's important that the techniques should assist knowing and maintaining the proper inventory levels in the least stages. TallyPrime allows you to customise and consider your reports the way you would like to. Let’ say you're within the stock summary report that shows the stock position of inventories, and you would like to vary the view that shows the ageing details. Just click ‘change view’ and choose the deem ‘ageing’. There you go, the report now starts showing ageing details.

Track and prepare job cost sheet

Given the complexities related to managing costs for every job, most businesses have automated the preparation of job sheet using accounting software. Tracking material movement across the roles , consumption and asserting profitability is simpler using an accounting software. With reports and summaries available instantly, informed decisions are often made on-time. once you are managing job cost for every order, it sometimes becomes difficult to work out the particular cost for every job, location-wise. However, such capabilities should be seamlessly met by your business management software. And guess what, TallyPrime does just that! Creating multiple jobs or projects as cost centres, and tracking the value and revenue related to each project in TallyPrime may be a smooth affair. you'll not barely allocate costs while the work is ongoing , but, on completion, you'll also compare the asking price and profit with estimates. Make informed decisions supported the profitability of every job or project.

Store and ship your inventory smartly

In your business, you'll be managing the inventory in multiple physical locations, like shops, warehouses, bins, racks, cabinets, and so on. during this case, it's important that you simply keep an in depth track on which inventory is stored at which location. Especially when a business has multiple products, inventory will need to be tracked by defining unlimited groups, categories, batches, locations/godowns. While it are often a particularly daunting and confusing method to trace inventory at multiple locations, but with an innate business management software, storage and shipment of your inventory are often a seamless affair. Let’s say you're using quite one location, bin, rack, cabinet, and so on. With numerous locations and inventories, it's obviously tedious to stay a watch on the stock movement. TallyPrime’s godown capability will allow you to track your inventory by maintaining raw materials and finished goods in separate locations.

While all the above points are extremely crucial while keeping an in depth check on your inventory, to be efficient in inventory management, an entire lot of activities/ techniques are to be followed by the business.

We understand how important it's for you to take care of your inventory levels. With numerous options available to trace inventory, it can get confusing to pick the simplest choice for your business. Flexibility being the key to work any business management software, TallyPrime is meant to figure precisely the way you would like to. Thus, you'll easily generate inventory reports supported the vouchers you've got entered till date. you'll even change the looks of reports consistent with your requirements, for instance , to form comparisons between different companies, periods of the fiscal year , then on for better insights of your business. determine what more you'll do with TallyPrime’s inventory management feature, and check out 7 days free trial for yourself. Yes, you'll be amazed!