6 Mistakes to Avoid in Inventory Management

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6 Mistakes to Avoid in Inventory Management

Inventory or stock is the core of most product based businesses. Storage and processing of this stock to develop the final sellable product requires efficiency so that the input is minimum and the output is maximum.

A perfect strategy can only be made by studying the past patterns of the moving inventory. A software that specialises in Inventory Management is a must as it assists in this strategy formulation.

Below are some common problems associated with Inventory Management and how Tally helps in solving these problems -

Complete Stock Log

Tracking inventory is the number one focus area of all inventory related businesses. Yet most warehouses lack the software needed to track the movement of inventory. As stock moves from raw materials to semi-finished goods to finished goods and then to the customer, It needs to be tracked in a similar way. Tally Prime helps you keep track of stock without spending much time on data entry. Barcode and label printing in Tally can help you in data entry as barcode can easily be scanned to enter details regarding stock in Tally.

Stock Availability

Demand forecasting is one way of keeping stock ready beforehand and not missing out on orders due to stock unavailability. Tally allows you to keep a timely record of the moving stock and thus you can develop a judgement of how much stock will be needed for the month or for whatever period of time.

Missing Stock

Lost stock or missing stock is a very common occurrence. Not being able to locate the stock when it is needed is equivalent to wastage of stock. This is one of the biggest problems in inventory management. And the only way to avoid this is to have a proper Rac/Bin wise Inventory Management system. You can add this module in your Tally to track your inventory in your Tally itself and never misplace any stock.

Quality Check

Quality control must be one of the top concerns for any manufacturer. The warehouse must conduct proper quality checks of raw materials, semi finished products and the final products to ensure the products are of good quality. Tally helps in quality control by setting parameters to make sure each and every component of the final product is of the best quality so that the customer has the best experience with the product.

Poor Warehouse Experience

Warehouse management is a complex set of tasks. The tasks need to be done at a specific time to yield 100% efficiency and profit. To achieve this, a good strategy and planning is required. Tally for manufacturers helps you in strategy formulation by providing you with the accurate past data and analysis to make the best decisions regarding the time of each process to start, the lead time of each order and also the availability and non-availability of stock. It also helps in deciding the re-order level to avoid over stocking or under-stocking.

Poor Material Requirement Planning

Every inventory must have a proper BOM (Bill of Material) i.e how much stock/ components are unavailable and needed. Using Tally for manufacturers, you can automatically generate this Bill of Materials. Tally Prime for Manufacturer lets you know the material needed and the materials that are available.This helps you decide the amount of material that is needed to be purchased. The software also helps you in creating the strategy regarding when the materials will be available for processing and when the process can start for the order to be delivered on time.

Tally for manufacturers is a great module for inventory management as it specialises in inventory and stock management specifically. A must-have tool for every person using Tally and owning a warehouse or stock related business.

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