5 Ways Inventory Management Can Increase Profits

Growth Technology by Kush Goyal

Inventory takes the centre stage in most businesses. Managing inventory should be very easy for the staff. The systems in place should do the heavy lifting, staff needs to follow the simple instructions only. Most business owners really wish to get such systems in place. Sumtracker makes that wish true! Let’s see top 5 ways inventory management can increase your profits.

1. Sell your dead stock to free up locked funds

Dead stock is the single biggest loss which businesses face. Dead stock is defined as stock which is sitting in your warehouse for a long time. This stock is hurting your bottom line in many ways.

  • It locks up your funds
  • It take up your physical and mental space
  • You can’t sell dead stock which is too old or ruined
  • Dead stock has accounting overhead

Sumtracker provides dead stock reporting based on your purchase date of that particular stock. For example if you have a product called Blue Shirt you can see out of 100 pieces in your stock how many of them are going to be dead soon. Also how many are already dead. Using this report you can take decision in advance if you need to sell the stock at a lower price or return it to the supplier.

2. Quickly find what your customers want

It is very important to respond to customer queries quickly. This gets you maximum sales conversion. Every customer wants to see the product catalog with details like quantity available, price, variations and delivery. In casual work environment sales staff has these memorized. But this often leads to mistakes in quotations. In fact a lot of times mis-communication leads to loss of sale. This way of working increases dependency on staff too. Sumtracker provides super fast product information search. Your whole staff will work on the same data at real time. So they can provide the customers the exact information without any trouble. This method of working will give confidence to your sales staff and give them the opportunity to serve the customer much better.

3. Control your purchase

Purchase is the single most important point of expense. Having great relationships with your suppliers can really give the extra advantage required to compete. To make this happen you need to keep your focus on timely payments to suppliers and keeping your purchase orders optimized. Purchase orders should have the right mix and quantity of products. To make decisions related to the optimum products to purchase you need to look at your sales performance of each product and make projections for future requirements. Sumtracker provides detailed sales and purchase reporting to make such decisions.

4. Track delays and find mistakes

Inventory management involves daily data entry. Staff has to perform all actions on the software directly to ensure no transaction gets left behind. This also removes any paper work and double entry. If data entry is done in real time you can keep track of delays in your processes and address them quickly. Sumtracker provides reports and logs to track movement of stock. If there any delay or mistake you can take an action. For most accurate tracking you have to reconcile stock at periodic intervals.

5. Remove bottle necks in inventory movement

Delays in production and distribution is a major source of losses. Production delays can be from your end or from the supplier end. You need to be aware about any such delays as soon as they happen and then take appropriate action to resolve the situation. In Sumtracker you can enter information for each step of your production or delivery process. Then you can track when each step was completed. You can create alerts for critical steps like receiving the finished goods from job worker. This system will improve process efficiency and make your life stress free.

Kush Goyal

Kush Goyal
Co Founder