Inventory management is an art and a very important functionality of a business. It starts from the item grouping and end with stock valuation. Multi level grouping will help to understand and analyze in micro level, for example, Main group parent group level 1 - parent group level 2 - final group - stock item. We can create items (make provision for a new stock item in the data base like a BIN number in manual stock keeping process) in each level as well as the additional sub groups. Various stock analysis such as stock valuation, stock aging, expired stock, stock moving statement etc is possible as filtering is provided as per this grouping system. Brand wise tracking, product identification like bar-coding, serial numbering, batch numbering, part number wise tracking Is also needed for better effective stock keeping process.
Stock Level Management
In manual stock keeping process, stock controlling will be a tedious job for the management as huge man power utilization is required, particularly if there are many items. This can be minimized when proper automation is adopted with the help of ERP software. Excess or over stocking will be the one of the major problem faced by the management. Over stocking will increase investment on stock and affect the liquidity of the organization. Likewise, short stocking will also have a negative impact as timely delivery will be restricted and will lead to business loss or delay in fund flow. To regularize the stocking level and to optimize utilization of resources, Integra ERP provides 3 level controlling systems via, maximum stock level, minimum stock level and re-order level. By analyzing transaction history of regularly selling/using items, user can decide these levels. The consumption volume and frequency, order delivery time span, perishability of product etc have to be considered while reaching these levels. Timely information and control over the transactions will help the user to keep desired stock levels and streamline material management process hence ensure timely delivery and fund flow.
Maximum stock level- Set maximum stocking level and prevent excess or over stocking.
Minimum stock level- Set the minimum
stocking level and prevent from complete exhaustion of the item.
Re-order level- set reorder level of an item and purchase process will be
initiated from this point.
Stock in Hand
The value of balance stock in a particular point time such as finished products, raw material, consumable and working progress are known as stock in hand. Stock-in-hand also called as closing stock, one of the main assets of the organization, comes under the current asset definition as its liquidity is very higher. In a business process, knowing stock position spread across the supply chain is a very important factor. In Integra ERP, total control over stock and its movements can be managed as follow.
Stock in transit
Goods that have shipped or dispatched from the vendor’s site, but have not yet arrived at delivery point. By knowing stock in transit business manager can understand what all materials are en-routed to the warehouse, when it can be tentatively delivered and accordingly he can plan and commit to the customer.
Stock in yard
Goods that are already delivered to the site but not taken into account after due verification and checking.
Stock on order
Stock that is already booked by the customer and its delivery is pending.
Actual committed stock, that is stock- in-had minus those stock booked by the customer.
Stock on wheel
Those stocks that have dispatched from one warehouse and not received by destination warehouse. Both Stock-in-transit and stock-in-yard are owned to the organization, but not yet been accounted. Another three, stock-in-order, salable stock and stock-in-wheel are accounted stocks.
Goods Receipt Note
A Goods Receipt Note abbreviated as GRN, is a document prepared by the material or purchase department after quantity and quality checking. The goods received are then sent to stores for proper stock keeping. Generally following details are checked.
►Ordered►Billed quantity►Received quantity.►Defective quantity in received quantity.
Godown, also known as warehouse is a place or building for storage of goods are used by manufacturers, distributors, traders etc. In Integra ERP, user can manage multiple godowns. In each godown, multiple storage locations can be created for proper stock keeping and easy identification of items. Stock valuation, stock movement analysis, godown wise stock position etc will be available in each godown.
Bar coding/ Serial Numbering
Managing inventory and material tracking, particularly where there are number of items is a troubling job to the management. Particularly in retail trading business like textile, supermarket and departmental store etc. where billing is done quickly, stock and billing management is not possible without identifying product.
These Benefits Show Up In Many Ways:
►Speeding billing process
►Making sure that billed products are going out hence maintain correct inventory.
►Reduced manpower resources
►Instant stock valuation
►Research found that companies who support their enterprise resource planning with real-time automated data collection achieve a 50% higher return on their ERP investment than those who do not.
►Warehouse operations supported with wireless barcode input commonly achieve 99.x% inventory accuracy.
►Experienced typists make one error approximately every 300 keystrokes. Entering data by barcode scanning keep errors and the time and labour needed to resolve them – out of operations.
►Practically any business can take advantage of bar-coding to free up workers and reduce the paperwork needed to manage assets, supplies and shipments.
It’s clear to see how organizations rely on bar-coding to keep errors and inefficiency out of their operations. What’s less clear is all that goes in to making barcode systems reliable and effective.
A serial number (also manufacturer's serial number or MSN) is a unique code assigned for identification of a single unit. Although usually called a number, it may include letters, through ending with digits. Typically serial numbers of a running production are incremented by one, or another fixed difference, from one unit to the next. Units may be marked with several alphanumeric codes, but only one of these will be a serial number; others are sometimes called nominal numbers, and may identify the part, specify installed options, and so on. inventory management software