Category Archives: Inventory Management

Custom Software from KCSI

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At KCSI, we create software attuned directly for the needs of our clients. It could be a solution our clients wish to develop or software for some specific need when they no out-of-the-box solution can handle their needs.

Our company was founded twenty years ago as a custom software programming house and has remained as the prime purpose of its existence ever since. Our staff experience has been wide and varied and has continued to expand to new formats, platforms and technologies as they have developed. We have the experts in the wide variety of tools and languages needed to create high quality custom software that can absorb the growing needs of your business, no matter which industry or context in which it functions.

Email us at sales@kcsi.ca to learn how we can help your software dreams come true.

In The Team There Are Many Strengths

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Assigning projects to team members will be smooth if they are assigned to those with the particular strength required. Workers who are constantly aligned to tasks within the area of their greatest skills out-produce other workers by 10%.

Now imagine a project to which has been assigned your best economist, your best artist, your best programmer, your best engineer, your best writer, and your best leader. The project would likely cost you the least, make you the most, be the most beautiful and most successful project ever undertaken.

True efficiency results when the best talents produce the most proficient and on-the-mark project ever produced. Happy customers and satisfied team members are a brilliant by-product, leading to increasing enthusiasm from all.

Inventory Turnover Ratio

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The inventory turnover ratio (ITR) gauges the number of times stock has been turned over (replaced and sold) in a year. ITR is a sound indicator of stock management, accurate buying practices and consistent stock quality (whether the items are obsolete or not). It is assessed by dividing total purchases by average stock in a given period.

Measuring your stock turnover is important because gross profit is earned each time such turnover occurs. This ratio can enable you to see where you might improve your purchasing practices and stock management. For example, you could analyze your buying patterns as well as those of your clients to determine ways to reduce the amount of stock on hand. You may wish to turn some of your obsolete items into cash by selling it at a discount. The ITR also will indicate if your stock levels are too low and if you’re missing out on sales opportunities.

The formula is:

COST OF GOODS SOLD

ITR =      ——————————–

AVERAGE INVENTORY

At KCSI, our experience with, and knowledge of, stock management grows daily by leaps and bounds. Our in-house experts can advise you on precisely what you need to stay on top of your business, keep ahead of your competitors, and optimize your profit margin.

Contact us at sales@kcsi.ca for the best advice you can get about inventory management practices.

Track Your Key Inventory Metrics

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An industrial engineering axiom states that what isn’t measured can’t be improved. From an inventory perspective, the metrics are the same for online sales as for catalogs, although the forecasting systems requirements for Internet promotions may be different from those for catalog inventory. The metrics include:

  1. Age of inventory
  2. Cost of backorders
  3. Final fill rate/returns/cancellations
  4. Gross margin return on investment (GMROI)
  5. Initial customer order fill rate
  6. Maintained gross margin
  7. Measures of overstock
  8. Top-line and bottom-line growth
  9. Turnover
  10. Write-downs as a percentage of costs.

Key metrics for stores would include:

  1. Top-line and bottom-line growth
  2. Comparable-store sales (year over year)
  3. Maintained gross margin
  4. Turnover
  5. GMROI
  6. Weeks of supply
  7. Markdowns/margin loss from write-downs
  8. Age of inventory
  9. Sell-through percent
  10. Stock-to-sales ratios.

Assessing Safety Stock

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Safety stock is helpful in order to avoid encountering ‘stock outs’ if rates of consumption increase and/or the lead times get extended from the values established for replenishment of your system.

The chief way to establish safety stock is to take into consideration the most common two variations that normally might occur over a period of time in regards to additional quantities of stock:

1) When consumption variation has increased dramatically:

Safety Stock = (maximum rate of consumption – normal rate of consumption) X Lead Time

2) When Lead Time variation has increased dramatically:

Safety Stock = normal rate of consumption X (maximum Lead Time – normal Lead Time)

These formulas should help greatly in adjusting for those times that safety stock becomes necessary.

Why Choose Custom Software?

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Custom software achieves the following goals:

  • Commercial Software
    With a custom solution, you will own the intellectual property rights for resale
  • Competitive Advantage
    Custom software solutions take advantage of what makes your company unique
  • Integration
    A custom solution will integrate with existing systems
  • New Technology
    A custom solution allows you to take advantage of the latest technologies
  • Unique Requirements
    A custom solution will meet 100% of your business’ requirements

Packaged software may contain many features you need, but custom software can find its place in practically any organization. Web applications run on a hosted web server and are delivered through the internet, thus requiring an internet connection, and using resources over the internet, including storage and CPU processing, that can be accessed anywhere no matter what device you are on so long as you have an internet access. Similarly, mobile applications run on tablets or smart phones. Enterprise Application Software (EAS) is custom software solution that is created for the needs of an organization, rather than individual users, with the main goal behind enterprise software being to improve enterprise efficiency, productivity, and profitability.

A custom software solution can be created on any of these platforms, with these common accomplishments:

– Accelerated sales cycles

– Automated business processes

– Captured market share

– Cut costs spent on 3rd party software

At KCSI, we specialize in creating breakthrough custom software applications. Our development method employs you as an integral part of the process, converting your business ideas into a competitive advantage. Contact us today at sales@kcsi.ca.

Assessing the Custom Software You Need

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Many companies wonder whether taking the leap toward customized software is the right move for them. In assessing their business and organizational needs, it is useful to employ some sort of template with which they can decide the most important features of the proposed software. We have the following checklist that has proved helpful for those who have decided that customized software was the path for them. Perhaps you too may find it useful:

General Inventory  
Real-Time Inventory Status  
View Items Received History  
Organize by Category  
View Items Sold History  
Import/Export Inventory Files and Reports  
Inventory Planning System  
View Inventory by Category  
View Inventory by Location  
Barcode Scan Adding  
Lot and Serial Number Control  
View Overall Inventory Levels  
Item Kits  
Return Management  
Financial  
Monitor/Report Stock Costs  
Configure Sales Tax  
Create/Send Purchase Orders  
Manage Recurring Orders  
Set Sales by Weight  
Multiple Currencies  
Set Sales by Bundles  
Other Features  
Attach Notes  
Attach URLs  
Attach Photos  
Customer Database  
Supplier Database  
Allows Multi-User Access  
Assign Levels of Access to Users  
Multi-Inventory Support  
Multiple Languages  
Multi-business  
Customizable Reports  
Web Access  
Export Data Into a CSV File  
Export Data into Quickbooks  
Export Data into an Excel File  
Export Data Into a Text File  
Export Data in XML File  
Export Data Into a PDF File  
Help & Support  
Online Information/FAQs  
Community Forums  
Email Support  
Phone Support  
Chat Support  
Support Plans for Purchase  
Supported Configurations  
Windows 10  
Windows 8  
Windows 7  
Mac  

Lessons from the Past

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Do you know who, in 1923, was:

  1. A man who was head of one of the world’s greatest monopolies?
  2. The Great Bear of Wall Street?
  3. The former president of the largest independent steel company in America?
  4. A past chairman of one of the country’s largest utility companies?
  5.  President of the largest gas company?
  6. President of the New York Stock Exchange?
  7. The greatest wheat speculator?
  8. Secretary of the Interior in President Harding’s cabinet?

These men should have been considered some of the world’s most successful men. At least they found the secret of making money. Now more than 90 years later, do you know what became of these men?

  1. Ivar Krueger, head of International Match Corp. (known as the “Match King”), cooked the books of over an hundred companies and died a suicide – or was murdered by one of the investors who lost millions when the pyramid hoax he had set-up went bankrupt.
  2. The Great Bear of Wall Street, Cosabee “Jesse” Livermore, was blamed as one of those who precipitated the 1929 Stock market Crash and later committed suicide.
  3. The President of Bethlehem Steel, Charles M. Schwab, a multi-millionaire by age 35, lived his last two decades on borrowed money and died owing almost two million dollars.
  4. Samuel Insull, chairman of Commonwealth Edison Company and other utility corporations, amassed more than one hundred million dollars, was later acquitted on numerous embezzlement and mail-fraud charges, and died from a heart attack in a Paris subway with only twenty cents in his pocket.
  5. The President of the AGECO gas company, Howard Hopson, lost his stockpile of over seventy million dollars fighting convictions for mail fraud and tax evasion, and ended his days in obscurity and ill health.
  6. The President of the N.Y.S.E., Richard Whitney, served time in Sing Sing for grand larceny.
  7. The greatest wheat speculator, Arthur Cutten, died of a heart attack with three indictments pending against him.
  8. Secretary of the Interior Albert Fall served time in prison still owing the $100,000.00 fine portion of his sentence.

Ironically, Schwab and Insull had graced the covers of Time Magazine in 1926, one week apart.

The same year, 1923, the winner of the most important golf championship, Gene Sarazen, won the U.S. Open and PGA Tournaments. He continued playing golf for another 76 years and was solvent the entire time, dying at age 97.

CONCLUSION: Stop worrying about business and consider golf!