Different Inventory Models

Numerous inventory models exist, and various approaches can be applied, depending on your needs and ideas:

Movement Inventory is an inventory classification for items that are held due to a process delay while some inventory is moved from one location to another.

Economic Inventory is the physical inventory plus replenishments ordered but not yet received less items sold but not yet delivered. It indicates the amount exposed to the risk of fall in prices. Also called economic stock.

Book Inventory is the amount of inventory recorded that is presently in stock.

Deterministic Inventory Control is a stock method based on the assumption that all parameters and variable associated with an inventory are known or can be computed with certainty, and that the replenishment lead time is constant and independent of the demand.

Probabilistic Inventory Model is where there are multiple possible outcomes, each having varying degrees of certainty or uncertainty of its occurrence. Probabilistic is directly related to probabilities and therefore is only indirectly associated with randomness. This method describes the mathematical analysis (and that of its consequences).

Stochastic Inventory Model is that which contains a random element, hence being unpredictable and without a stable pattern or order. All natural events are stochastic phenomenon. Businesses and open economies are stochastic systems because their internal environments are affected by random events in the external environment. The Stochastic Model conveys the idea of (actual or apparent) randomness. The term ‘stochastic’ is Greek for being skillful in aiming or guessing.

Best Features of a Stock System

The best designed stock systems take into consideration a number of factors:

Hands-On Control
In every good system, you must have direct hands-on access and control of your inventory items. These features culminate in the ultimate need of your business – to get the items to your customers when and where they need them.

Fiscal Control
The most financially controlled system must be in place to, whenever possible, limit or eliminate additional charges that can increase the costs to both your business and your customers.

Supply Control
The receipt of items from your vendors must be as streamlined and reliable as possible. Combined with the precise and accurate delivery of items to your customers, you’ll benefit from repeat business and take advantage of word-of-mouth advertising you’re your satisfied customers.

Satisfaction Control
The highest level of customer service at every level of your inventory management process must be achieved and maintained.

All of the above criteria are present in every efficient company. Some take longer to improve or implement, but all efforts must be made to guarantee their existence. Then just sit back and watch how your business improves. Vendors you can count on, complete knowledge and control of costs, completed order delivered on time and satisfied customers – all will contribute to your successful future.

The “Inventory Turnover Ratio”

Your inventory turnover ratio (ITR) represents the conversion speed of stock into sales. Normally a larger inventory turnover suggests an efficient management of inventory since the more often that stock is sold, the lower the amount of money is needed to finance the inventory. A low inventory turnover ratio reflects a failed management of inventory; it further signifies an over-investment in inventory (particularly inventory accumulation and the stocking of older and substandard goods) as well as bad business, slow movement of goods and low profits when examined against total investment. The inventory turnover ratio is also an indication of your profits, with a high ratio signifying more profit and a low ratio signifying less profit. High inventory turnover ratios may not be accompanied by relatively a high profits, and high turnover ratios may be due to under-investment in inventories. Usually, however, high turnovers are what indicate the current trend in a very positive light.

Comparative analysis and trend analysis of inventory turnover is undoubtedly useful for financial analysis. The ITR, in summary, indicates the relationship between the cost of goods sold over a specific period of time and the cost of average inventory over that specific period. It is expressed in number of times (turnovers having occurred). Inventory turn over ratio indicates the number of times the stock has been “turned over” during the period and evaluates the efficiency that a firm has been able to manage its inventory.

Most importantly, the ITR represents whether the investment in stock has been within proper limits or not.

Doing Banking with SIMMS

SIMMS 2012 Inventory Management software makes it possible for you to reconcile checking, cash and credit card information, transfer of funds, and management of bank deposits and withdrawals of funds quickly and simply. Keeping the standard of accounting requirements for those untrained in them can be a challenge, but SIMMS 2012 interprets the structures and multiple steps necessary for those standards and makes your transaction needs easy to create, edit and manage using intuitive and easy-to-understand windows.

Many other accounting packages demand that you master complex accounting procedures and manually implement them. SIMMS has been created using the input of accountants, whose suggestions and focus on the most important information have contributed to the easy and practical steps included in the initial setup. None of the most important settings are missed and none of the data requested during the setup is left as something confusing to the user. Addition of secondary data takes place during the secondary steps of setup, allowing you pinpoint which information is the most important.

If you are managing your bank accounts, or tracking your balances due, or looking into your payment history from customers and/or to vendors, these details are easily entered or amended in SIMMS, which combines these standardized accounting capabilities with a masterly stock management capability to make SIMMS 2012 the best choice for small- to medium-sized companies everywhere.

To learn more about SIMMS Inventory and Accounting software, contact us at sales@kcsi.ca or visit the website www.simmssoftware.com.

CRMUnleashed – Customer Service Case

In CRMUnleashed you can create cases direct from the customer/lead/partner master file, or from outside of your customer file. Cases can also be created using the Bug Tracking Utility and from the Customer Portal. Flexibility and ease of use is our primary goal.

Creating A New Customer Service Case

Customer Service Cases can be created direct from your lead, customer or partner master file. To create a New Customer Service Case from the master file:

1. Proceed to the Customer Service menu, New Case option and pick a template you want to

use.

Note: You will only see these if templates have been enabled in General Settings.

2. Select a customer, lead or partner from the Customer drop-down field. You can click in the

drop-down field and start typing the company name if you know it (until the right company is

selected) and then press the type or TAB key.

3. To refresh the window with the selected customer information, type in a subject for the case in

the Subject field.
Note: This should be a short description of the case no longer than 100 characters because it is used in several reports and summary grids as a short description of the case.

4. By default, the creation date and time is the current date and time. If you want to override and change this you can do so by modifying the information in the Creation Date and Time fields.

5. If you want to associate the contact related to the company then select the contact from the Contact Name drop-down field. This is not mandatory, however it is a good idea to keep your cases organized to a specific contact within a company. You can click the Note icon to the right of this field to add a new contact on the fly.

6. If you want to indicate a start date for the case, select it from the Start Date field. If you want to indicate a deadline for the case, select it from the Deadline field. If you know or want to indicate an estimated amount of time required to complete the case then type it in the Estimated Hours field.

7. It is a good idea to indicate the type of issue that this case represents by selecting it from within the Type field. Click the magnifying glass to the right of this field to add a new type on the fly.

Be certain to type in a good short description for the type and associate it to a support plan (if required).

8. Type a long detailed description of the case in the Description field.

9. Select a product you want to associate this case with by selecting it from the Product field. Click the magnifying glass to the right of this field to add a new product on the fly (if required).

10. Select a category you want to associate this case with by selecting it from the Category field.

Click the magnifying glass to the right of this field to add a new category on the fly (if required).

11. Click Save to save the case.

Supply Chain Management

Supply Chain Management encompasses all key activities within the supply chain, including the sourcing, provision, and housing of raw materials; the warehousing and distribution of finished products, and the management and scheduling of works-in-progress (WIPs).

Many companies try to make more important the flexibility of their organization while concurrently try to eliminate the carrying of large blocks of stock on-site. Outsourcing of the storage of stock and its shipment to customers is often much more inexpensive and more accurate. The design is to reducing management control of daily logistics operations while also increasing the number of organizations involved in satisfying customer demand. As more companies have chosen to manage stock in this fashion, supply chain management as a particular discipline began. At its best, supply chain management improves inventory visibility and the speed and efficiency of inventory movement with the ultimate goal of improving trust and collaboration amongst supply chain partners.

Companies can maximize and streamline the planning, control and execution of these all the important steps of supply chain management is easily handled by SIMMS 2012’s ability to handle locations and sub-locations and their ability to be assigned to as many different vendors as you want. Contact KCSI today to find out more.

Selection from Manufacturer’s Lots

SIMMS 2012 Inventory Management software allows you to set a default option for selection of manufacturer’s lots. You can choose selection by three criteria: Manual, by Expiration Date or by Entry Order.

The Manual Selection method can be used if you want the option to be able to choose randomly the item lots from within then system. If you have chosen a particular naming scheme when you assigned the lots to the stock, you can use it as the pattern for selection. Lots that have been assigned to the items at the manufacturer’s level also may contain details that you prefer to use in selection. If so, the Manual selection method is for you.

If your system contains stock items with expiration dates, then the Expiration Date method is for you, since the expiration date information is assigned to the manufacturer’s lot field. If you use this method, the items with the oldest expiration dates (those expiring first) will be selected for you by the system. This method keeps your oldest stock moving out of your warehouse with each successive transaction. For instance, if your order requires 50 units, it will all from the first available lot (25 let’s say) and then the other 25 will be selected from the next available expiration lots up to the required total of 50.

If your stock is likely to have a wide variety of stock with an equally random combination of ages, the Entry Order method will suit you best. In such cases, if your order for 50 items comes in from a customer, and you received 50 of them a month ago, and another 50 last week, SIMMS 2012 chooses the 50 that entered your inventory earliest. This establishes a First-In, First-Out (FIFO) system of selection.

For more information on manufacturer’s lots , expiration dates and other aspects of inventory management, visit www.simmssoftware.com or e-mail sales@kcsi.ca today.

Stock Identification and Tracking

To be thorough and accurate is the aim of every good inventory program. SIMMS 2012 has the features you need to know exactly what stock you have on-hand, what stock you have on order and what stock you will need for every schedule or project in your system. SIMMS allows you to view self-defined locations from shelves to crates to bins to pallets to cupboards and rooms and warehouses, and every sub-location you need.

Advanced and customized reports can provide information on locations containing zero counts for items, items with current negative stock counts, just items with serial numbers, just items with manufacturer’s lot numbers and/or items with approaching expiration dates. From tracking a particular item you can glean its full history from the date it was received into the system, if it was returned for repair or replacement, as well as every detail of its issue to a customer.

When you need to know any particular tracking detail of an item, you can find it in SIMMS. Whatever you’ve assigned to that item is quickly and easily located. Whenever an item is transferred from one location to another, there is an easy record to be found of it. Every change to an item’s stock count — due to both its sale or its manual stock count adjustment history — is available by a few clicks of your mouse.

For more information on how SIMMS help you easily and dramatically manage your every stock concern, visit www.simmssoftware.com or contact us at sales@kcsi.ca.

Stock and Money Management with SIMMS

Managing the stock items you receive from your vendors has never been easier than with SIMMS 2012 Inventory Management software. Here are some pointers to use to save you money on inventory costs:

The Handling of Freight
Do yourself a big favor when preparing shipments by keeping the sizes of your packages to the very minimum. Billing rates are very much affected by the dimension of the package and its weight. Hence the use of bubble wrap and the fact that items barely fit into the box in which they arrived. You should have a box big enough to contain the three widgets someone ordered but also have on hand the box small enough to contain the single one someone else ordered. Stock up on packaging that is just big enough and you’ll save a lot of money over the course of the year.

An additional advantage in dealing with freight is to know that certain shipping businesses offer deals to their best customers, so become one of their best customers. FedEx, for instance, often give away laptops, gadgets or other rewards to those customers who steadily use them. Check all the shipping companies for such special offers and take advantage of them. It’s your money, after all, so why not ship with a company that gives you the best deal?

Define the Costs of Returned Items With Each Vendor
Some items will in all likelihood have to be returned because of defects or breakdowns. If you have not coordinated an expense policy with a new vendor, they will attempt to ding you with the entire expense of processing the return. So make it clear before any returned item occurs exactly where you both stand on the issue of the expenses likely to occur in the process, from shipping, to processing, to return fees (if any). Pay particular attention to the cost of shipping the replacement to your customers – that should be the vendor’s expense, not yours. SIMMS 2012’s Service and Returns features will help you stay on top of these processes.

Payment Terms Should Suit Both the Vendors and You
Focus attention on payment terms for 30/60/90 days to ease your cash flow challenges. Take advantage of every extended period you can get before payments are due and when the period has matured, pay promptly and completely. Remember it’s your money until you have to pay it out, so make it work for you as much as possible. SIMMS 2012 is flexible in regard to vendor payment terms, so take advantage of the option. One additional note: if your vendor gives a discount for paying early, pay early!

Ultimately, Negotiate All Details With Your Vendors
Many vendors will provide samples of newer items in their catalog (if you have not ever received them before). You can test the new items and catalog them early if they work alright, and you can do up special sales prices for them since they are new and your customers can try them at reduced expense, especially if you got them as free samples.

Furthermore, ask for discounts from your vendors. Many of them will agree to up to 10 or 15 per cent off of their wholesale prices for orders of even small volumes, in concert with any special rates they have for particular items. SIMMS 2012 allows you to enter these reduced charges upon receipt of items into the system.

Order Stock in the Middle of the Week
Lastly, it’s helpful to know that most wholesalers receive the bulk of their orders on the first and last days of the week. Avoid mistakes due to rush orders by fitting your orders in on late Tuesdays and early Wednesdays and your orders will likely be more correct and arrive closer to their expected times of arrival.

For more ways that SIMMS can help your money and stock management, visit www.simmssoftware.com or contact our staff by e-mailing sales@kcsi.ca today.

SIMMS Helps Fight Retail Crime

In today’s economic climate, retails stores are experiencing an old challenge at an alarmingly large rate. Theft at retail stores has undergone a dramatic increase in the last five years. The following video feature hosted by Brian Williams of MSNBC details this new risk to the survival of many of today’s merchants:

http://video.msnbc.msn.com/nightly-news/47773480#47773480

With these new and present challenges to profit margins and stock safety, businesses require cutting edge technology to help them know where all of their stock is at all times. SIMMS 2012 Inventory Software permits a quick and easy end-of-day running inventory so that your company will know the day-end totals, and thus also the opening counts for the next day.

Contact KCSI at sales@kcsi.ca for more information or check out more information on SIMMS 2012 software at www.simmssoftware.com.