How to Control Inventory Costs in IMS

How to Control Inventory Costs in IMS

As a business person you are familiar with the terms of profit, sale price, cost price, manufacturing cost, storing cost, etc. of course you are.

Let’s start with a very simple but basic concept. What is a profit? I know all of you know the answer. The margin between the cost price and sale price is the profit of any business. You are absolutely right.

We are repeating these concepts for a specific purpose. All businesses are well-known to inventory management systems, its applications, and its benefits. They are using IMS to ensure the consistent supply of products and ensure the smooth flow of operational activities. Right? We have a question for you. How effectively are you using IMS?

Do you know IMS can assist you surprisingly to control cost? And that helps to keep the final cost of the product low?

Are you currently using any IMS for your business? Or are you thinking of adopting a good IMS for business? Are you thinking of starting a small or large business?  No matter which group you belong to. All of you are welcomed to this article. We assure you that this article is going to be very beneficial and increase your business knowledge. Here you will find amazing methods of lowering your cost and increasing the profit ratio for your business. Let’s start the discussion.

Avoid expense due to wastage and spoilage

There are various types of inventory needed for a variety of businesses. Due to the different nature of stock, they require separate methods to store them safely. Businesses have to face great losses due to poor handling of stock.  Most of the items damage and spoil due to unfavorable environments. Proper place, moisture, temperature, the sequence is some of the essential factors while placing stock properly. A little disturbance in one-factor causes wastage of the whole inventory. IMS helps businesses with different tools that give them the right and accurate guidelines to place the inventory. So, businesses cut the cost of wastage and spoilage easily.

Reduce the storage cost 

The proper arrangement of stock reduces the cost of the stock. Furthermore, IMS suggests different techniques to maintain the right quantity of stock in the warehouse-like benswholesale economic order quantity.  Economic order quantity miscalculated the volume of stock that has cost the business most low. Lower ordering cost, transport cost, and storing cost give you possible low cost of inventory. That is impossible with the use of IMS in the business.

Inventory accuracy 

Do you want to refuse your customers? Of course, no one. MS assists a business to have inventory accuracy and avoid the stock out or dead stock situations. Organized stock and a strong flow of data give the up to date status of stock to all employees. In this way, they can use it for better strategies. IMS helps to calculate different quantities like economic order quantity, minimum order quantity, storing cost, and others.  These help in lowering the cost without affecting the performance.

Dispose of dead stock 

Some businesses buy a huge volume of stock. They got out of trend and never went back to shelves for sale. Finally, the business suffers a loss due to this dead stock.  What to do with this problem?  Always grab the trouble from the roots to eliminate it completely. Use good IMS.  IMS suggests the most accurate quantity of stock for purchasing. A variety of formulas can be applied to get order stock like EOQ, MOQ, etc. It suggests the right volume to balance the demand and supply of products.

Avoid the loss sales

How a business earns profits? You all know the answer, that is by selling products to customers. If your customers do not get their favorite products on time.  This results in decreased sales and there is a possibility that the customers never think to come there again. IMS helps you to avoid this loss.

Organized reduce the expense of damage and theft

A prime factor that causes loss to the business is the damage and spoilage of stock. If the stock is not aligned properly in the warehouse. The environment is not appropriate for a specific material. That causes spoilage and damage to stock. It has a negative effect on the profits of the business.  Use IMS to reduce loss. It helps to maintain the stock in an organized manner. IMS provides you the facility to fee expiry dates of products in systems. By the system, you can check details and products. You can adopt First-in first-out (FIFO) to save products from spoilage. Similar other methods can be applied for optimum use of resources.

Forecasting reports save from extra expenses

Imagine, you are going to order stock for your business. How will you decide the suitable order to meet the future demands of customers? If you order a huge volume you have to face wastage loss. If you order a small quantity, you have to refuse your customers. IMS helps you in this situation. With the help of future reports, you can not only estimate future sales but also help in other strategies.

Final suggestion:

How many of the above -mentioned methods are you applying in your business? Examine your business performance?  How much is your business spending to handle stock?

If you are not using any of the above-mentioned methods, seriously you are wasting your money.

We know it’s not easy for you to choose the most suitable IMS for your business.

We have a solution to your problem. Yes, the necessary and final suggestion is that you should choose SeeBiz Inventory for your business.  If you want to reduce the wastage of stock with less cost and effort. SeeBiz (IMS) is the right option for you. With help of this system, you can monitor your stock. You can check the real- time status of stock at any time any place. SeeBiz (IMS) can create multiple reports periodically.

For what you’re waiting for?  Choose SeeBiz (IMS) as it is a wonderful business tool and run your business in an efficient manner.