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Home » Business Management » How efficient Cost Control impacts your Supplies Inventory?
Summary: Today, service-based companies need to monitor their inventories with the same seriousness as their product-based counterparts. Why? Because although measuring the cost of goods sold might not be the primary goal of service-based organizations, the inventory tracking exercise increases the trust in data, keeps inventory costs in check, and ensures the business is functioning optimally.
Traditional spreadsheets play an essential role in maintaining and updating data. But they fail when companies need to track multiple changing parameters in real-time. In addition, a manually updated spreadsheet fails to provide the same consistency and accuracy as an automatically-updating one.
To bring cost-control power to your supplies inventory, you should have optimally functioning ERP software that can:
Let’s study in detail how ERP software can help you achieve these goals.
How do you know the exact quantity of inventory you have without 360° visibility of your pick, pack, and shipment stages? How do you figure out that the inventory dispatched from a warehouse in Delhi has reached the warehouse in Mumbai?
Here’s how you can decrease the cost by having real-time visibility of your inventory status:
Not knowing the exact quantity of inventory you have can increase the shipping costs, break down your service schedule, and weaken customer relationships.
Manual tracking through spreadsheets has its limits. Once an error (a human-induced one) enters the picture, it’s challenging to detect and causes uncertainties, delays, and wears down customer trust. And this is only about the inventory items you are tracking. What about the non-inventory items?
When you have data about the inventory you have and its exact location, you can reduce the cost in the following ways:
Your teams will work more efficiently if they know when supplies will reach the warehouse. As a result, the purchasing department can make more accurate purchase decisions and gain better insights on when to schedule an event. Moreover, when each bit of supply chain and inventory information is available on a single platform, it becomes easy for different teams to collaborate and keep the business running smoothly.
You can bring down your costs significantly by knowing what materials you have ordered and when they will arrive in the following ways:
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