Imagine that you are running an e-commerce business. You are getting a lot of orders, from across the world.. These products are shipped to customers without your intervention and you are getting paid instantly after every fulfilment. Best part You don’t even have a warehouse or have any inventory! A process of running an…
Understanding Inventory Management Inventory management is a part of the supply chain management, which includes various aspects such as the process of ordering, storing and using the companys inventory like raw materials, its components, and the finished products. It is also used for controlling the number of products for sale. It helps to manage…
What Is Surplus Inventory Anyway? Surplus Inventory is a term used to describe a situation where fewer supplies are used than what is stocked, and that affects the profit margin and the unsaleable, yet expensive items lock up cash that could have been better used to sell other saleable products. If youre a merchant looking…
Choosing the right quantity of an item to keep up a satisfactory stock level is a challenging task in any business. If you don’t maintain a sufficient reorder level, you risk going with insufficient stock and might not be able to serve a client’s demand. On the other side, buying excess inventory can also…
Business! every step you take in your business should be calculated and tracked. If you are not tracking it, you are doing it wrong. Poor inventory management can be the absolute reason why your businesss efficiency is not the same as it was before. But there is much more to inventory than just its basic…
Inventories are the largest current asset of any business. Businesses are often confused about FIFO Vs LIFO. Ideally, there are two inventory valuation methods or accounting methods: LIFO (Last-in, first-out) and FIFO (First-in, first-out), or for this blog; FIFO vs LIFO. These are the two most used inventory methods for record-keeping that are feasible by…
Each business incurs certain expenditure to run. They can be further divided into purchases’ and expenses’. Expenses can be either cash expenses which are paid off immediately, or credit expenses, which are incurred on a particular date but settled later. Purchase usually deals with procurement process of inventory which we require to either manufacture, or…