8 Signs It's time to use an Inventory Management system
Published on 30 May 2023
5 minutes read
Table of Contents
Managing inventory is a complex task that requires meticulous tracking of costs from procurement to distribution. While starting with an Excel spreadsheet is common, growing businesses eventually need a more robust solution that seamlessly integrates with accounting and operations systems. Elobooks, a powerful inventory management system, offers the insights and efficiency needed to make informed decisions and drive growth. In this article, we will explore eight key signs that indicate the need to upgrade to Elobooks for enhanced sales and purchase optimization.
Lack of Clarity Around Frequent Inventory Adjustments
For manufacturing businesses dealing with raw materials and finished goods, inventory management becomes increasingly complex. Elobooks simplifies the calculation of various inputs and provides valuable insights to understand each step of the process. It helps identify discrepancies between financial inventory values and physical counts, allowing businesses to pinpoint the SKUs or locations causing the discrepancies.
Changing Manufacturing Processes
Switching from in-house to co-pack or vice versa often brings about adjustments that can impact costs of goods sold (COGS) and overall profitability. Elobooks ensures a smooth transition by facilitating efficient inventory management during these changes, helping businesses avoid potential financial implications.
Expansion of Inventory Locations
Companies operating from multiple locations or working with multiple 3PLs (third-party logistics) can benefit from Elobooks' accurate tracking and cost analysis across each location. By having a clear view of costs associated with each location, businesses can determine the most profitable locations to store inventory.
Anticipating High Growth
To effectively manage high growth rates, businesses require real-time visibility into inventory levels and status. Elobooks provides comprehensive insights, enabling timely reordering decisions and ensuring fulfillment capabilities align with increased demand. Manual data analysis is replaced with clear information at your fingertips.
Need for Detailed Reports
Traditional spreadsheets and accounting software often fall short when detailed reporting is required. Elobooks offers more precise and customizable reporting, providing insights into profitability by SKU, reorder points, inventory velocity, and other critical metrics. Better reporting translates into more informed decision-making.
Comprehensive Landed Cost Calculation
Importing raw materials or products introduces complexities like freight-in costs, duties, and exchange rate fluctuations. Elobooks excels in accounting for these factors, ensuring accurate landed cost calculations. By accounting for all costs associated with goods sold, businesses can evaluate margins more effectively.
Managing Variances in Raw Material Costs
Fluctuating raw material costs can significantly impact margins if not carefully tracked. Elobooks helps businesses monitor and track cost fluctuations, enabling timely adjustments to pricing and supplier sourcing. This is particularly valuable for industries reliant on ingredient sourcing and subject to market conditions.
Real-Time Data Access
Access to up-to-date data is critical for making profitable decisions. Elobooks provides real-time data that can be accessed immediately, eliminating the need for manual updates or waiting for monthly reports. With seamless integration with popular systems like QuickBooks and Shopify, businesses have all their sales data at their fingertips.
If any of these signs resonate with your business, it's time to explore an inventory management system like Elobooks. By freeing yourself from complex spreadsheets, you can focus on updating your data accurately within a user-friendly platform. Elobooks empowers businesses to streamline product movement, boost sales, and maximize profitability.
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