Checklist for Your Stock Improvement

The best systems of inventory management all contain a particular series of criteria that make them both efficient and worthwhile. When one considers that improvement of your inventory management system by as much as 15% can affect your profit margin by over 30% minimum, an intelligent structure and “practice” of sound policies should be the least that you do.

The criteria are as follows:

Systematic Inventory Updates-
Operation of proper perpetual inventory system should be used so that it is possible to determine at any time the amount and value of each kind of materials in stock. It also enables the comparison of book inventory with the result of physical counting.

Control of Stock Areas and and Sales of Product
The proper operation of a system of stores control and issue is introduced so that there will be delivery of materials upon requisitions to departments in the right amount at the time they are needed.

Checks and Balances
The operation of internal check should be introduced to ensure that transactions involving materials and equipment are checked by reliable and independent officials.

Establishment of Controlling Accounts and Subsidiary Records
Controlling accounts and subsidiary records reveal  summary of detailed materials costs at each stage of materials receipt and consumption from the storeroom to finished goods.

Regular Reports
Regular reports and information should be provided for the management in connection with the purchase of materials, issues from stock, inventory balances, obsolete stock, goods returned to vendors, and spoiled of defective units.

Standards or Level to be Fixed
A minimum quantity of each item of materials, below which point the inventory is not allowed to drop, and a maximum quantity, above which stock is not carried should be fixed. In the same manner ordering level and economic order quantity may be determined.

If you are planning to consider a modern and feature-rich software application to manage your stock, please review the above sections and devise what you need, then visit www. simmssoftware.com or email sales@kcsi.ca to get help with taking your first cohesive steps toward increasing your business success.

Improving Your Gross Profit Margin


Profit is the vital factor in every company — it opens many avenues of expansion and contributes to the solution of almost all problems. SIMMS 2012 Inventory Management software helps you manage your profits by revealing your business’ gross profit margin.

A company’s gross profit margin is an assessment its efficiency in securing overall profit once the expenses of the cost of goods sold have been deducted. A higher GPM is more encouraging for the company — and any investors — in regard to its future earning potential. The control of overhead (including rent or mortgages, utilities, etc.) is crucial to a company trying to improve its GPM. The formula for its calculation is as follows:

GPM = Gross Profit ÷ Total Revenue

For illustration purposes, let’s calculate the gross profit margin of Company One based on numbers from its income statement:

$180,000.00 gross profit ÷ $420,000.00 total revenue = 0.42

Therefore, the gross profit margin for Company One is 42%, which is very good.

Several areas in which a company can improve its GMP are as follows:

1) Reduction of Administration Costs – management personnel overhead is the concern here. Again, the work done versus the expense to achieve the work is the ratio to be used here.

2) Reduction of Cost of Sales – there are expenses related to the sales of products or services, and can be reduced by selection of a less expensive labor force or purchase of less expensive materials.

3) Reduction of Debt – this can be done through finding and employing lower interest charges and any other structured financial advantages that can be achieved.

4) Reduction of Development and Research expenses – this should be rolled back to its level of return efficiency. Many businesses accept expenses here in the belief that speculation works best, but it should be based on returns from each separate project and its revenue generating potential.

5) Reduction of Effects of Depreciating Stock – Newer, more reliable items must be purchased and older pieces must be converted in any way possible to a minimum of what was spent to acquire them.

6) Reduction of Marketing Expenses – either a lowering or discontinuation of aspects currently employed toward advertising.

Visit www.simmssoftware.com or contact KCSI by email at sales@kcsi.ca to discover more about how SIMMS 2012 Inventory Management software can help you achieve your profit margin goals.

Support for Your Clients

One of the best ways to provide support for your client base is to build upon the knowledge you have about who usually calls. Most often it’s the little things that your support representative provides that make all the difference. The personal things that are remembered about the fellow from the shipping department, the woman from the accounting office or “Charlie” in shipping. Perhaps you recall a birthday or they may have mentioned their children, or their favorite ball team. Such comments make them enjoy the process of calling, which in itself is something that many of them hesitate to do because they fear the issue is based on something they think they may have done wrong.

You must dismiss this concept from your mind and attitude as you talk — discuss it in terms that create the feeling that the two of you are on a quest to find the solution to a mystery. Every suggestion you make should be expressed as if it is an answer that probably isn’t correct, but it’s worth a try. Your tone should be that it’s an outside chance of being right; and if the idea happens to be correct then you mention that “nobody would have ever thought of it”. The result is that the caller is convinced that they didn’t forget something and that the solution was about something that was some sort of aberration. By retaining this approach, your customers will call more eagerly in future, which is an atmosphere that you must encourage.

In addition to the warmth of your greeting, your questions about how they are, and your professionalism, clients also need to know that there is an echelon of support in place; First Level will smoothly cede to Second Level, and so forth. The manner and procedures of support are something that all companies must set up in-house and demand from their entire support department. With this policy in place, the style must be the same: friendly, open and eager to help. The clients’ experience with your support department must be consistent in attitude and tone from bottom to top. Every level “supports” the next level — just as you support your clients.

The Use of Warehouse Locations

Most companies that have not adapted over to specialty software for the control of their inventory management have “blind spots” occur in the accuracy of their counting procedures. If businesses are not careful, stock can go into a virtual void wherein personnel think that items are today exactly where they were two weeks before. Much can happen in two weeks and stock can be moved to an adjoining shelf to make room for newer arrivals and can thus cause counts to be inaccurate.

With a capability to “freeze” the stock during a scheduled stock count, SIMMS Inventory Management software isolates the discovery of these inexactitudes, and their adjustment so that the physical stock is re-placed to where it is supposed to be. Most tracking software treats inventory stock in a vague fashion. This form of physical count combined with a location-by-location checklist of all items down to the exactness of bins, shelves and drawers. SIMMS brings the precision and accuracy that you need for your business while providing physical transfer capability that allows a record any shelf-to-shelf  “bumps” so counting becomes easier than ever before.

Visit the SIMMS website today or email sales@kcsi.ca to learn more about how SIMMS can truly keep you on top of all your items all the time.

Stock Within Departments

Numerous businesses by virtue of their structure require inventory to be managed at a departmental level. Any system that does not offer this option places the company in a stranglehold in regard to getting the information it needs.

SIMMS 2012 Inventory Management places its users in the lead by providing a versatile and robust, full-featured package. Items can be assigned to departments, and departments can be assigned as many storage areas of innumerable sizes and capacities as you want. Access to information that belongs only to those within the separate departments can be assigned on the basis of each individual. Often, each department has been assigned to branch stations of a company, such as a North-East Regional office, detachments for chain stores that have a departmental coordination, such as by the county, province or state. In some cases, remote sales venues such as kiosks in malls or mobile delivery vehicles are often grouped in a departmental fashion as well.

Managers and administrators can quickly and easily discover the facts and requirements of their sectional responsibilities using SIMMS. One shortcoming of departmental structure is that works-in-progress (WIP) can stack up because their finishing processes may be different and operate at different rates using different methods. Coordination between departments must be implemented (or improved if it does not already exist). Also, because they are separate, the rate of stock consumption is not coordinated either. The improvement of the coordination of so-called “buffer” inventory can be, with a common plan, established.

Contact KCSI today to learn more about how SIMMS can help you answer your challenges. Visit www.simmssoftware.com for more detailed information.

What’s On Your Critical Checklist?

Recently a great number of successful businesses were requested to list the most important steps they had taken to improve their company in the previous twelve months. The resulting details can be applied to any company (with necessary adjustments for their respective industries or specialty services).

Ask yourself which of the following can be achieved by your company and then take steps to make the changes possible; if any business can improve on half of these areas, everyone will notice the improvements in the business.

So here (in alphabetical order) they are — twelve months, twelve improvements:

  • Accelerated turn-around time of orders

 

  • Created a more effective organizational structure

 

  • Improved order accuracy

 

  • Increased flexibility and agility

 

  • Increased productivity levels

 

  • Leveraged valuable information

 

  • Maximized the value of the contents of the warehouse by turning over every item a minimum of at least three times per year

 

  • Optimized work schedules

 

  • Prevented disruptions from shift-to-shift

 

  • Provided real-time interaction

 

  • Streamlined decision-making

 

  • Tracked performance updates

 

Now you know them, pick one and get on with it!

Doing Business with SIMMS 2012

With SIMMS 2012 Inventory & Accounting Management software, you can handle all the requirements of your large or small company to provide the people in your warehouse and the people who work remotely — on the highway, in the office, at the cash register, or in a hotel room anywhere in the world. Or you can stand face-to-face with a customer while you access your stock and analytical data. You can provide the best in service, information and support. Orders can be placed with vendors for m0re stock, confirmed in their counts, and shipments from your warehouse — all can be processed checked, confirmed, and shipped in moments.

With SIMMS, you can also manage the main concerns you have, such as:

  1. Find Good Leads
  2. Hire the Right People
  3. Make Sure Information is Reported Correctly
  4. Properly Train Reps
  5. Compensate Sales Agents
  6. Limit Employee Turnover
  7. Use the Right Equipment

As well as helping you handle these problems, the wide variety and versatility of SIMMS give every advantage over its competitors, therefore passing these advantages on to you and your business. Here are but a few major features that SIMMS 2012 provides:

SIMMS can help you not just keep up with your business while you’re on the road, but also how it will enable its complete control no matter where you are — even if it’s just across town for coffee with a client. To learn more about how, visit www.simmssoftware.com or email sales kcsi.ca.

Stock Specialization

Companies that compete in the modern marketplace cannot have any aspects of their inventory management be considered — or actually be — vague or imprecise. The task of stock coordination must fall to someone who is prepared to do it and make sure that others observe the established in-house rules for its management. Most of inventory planning is merely the application of common sense and accurate arithmetic, and these responsibilities must be assigned to a specific individual who will take the duties seriously. Whomever the person is, they can literally be the savior of your bottom line.

A wide variety of training is available these days for those who wish to specialize in inventory management practices. The concepts that may seem very mathematical at first all support the ideas of supply-and-demand as well as incorporating the concept of the warehouse or storeroom as an evolving entity.

As for managers or owners selecting an employee to take on the task, it should be mentioned that qualified individuals can be hired with their training already in place, who come in and establish all the best practices after their analysis of the conditions that exist. No matter the source of your “Stock Master”, never just choose the person who is willing to do it. If you choose the option to promote from within, give the inventory tasks to several within your organization and you’ll soon discover which person has the natural talent. The ones with ideas for improvement and the ability to both voice and implement the ideas are a valued asset to your company. Don’t waste people where they will not excel — put the best people into every department if you truly wish to succeed. Once in place, your Stock Master must be introduced to your staff as that department head, and must be given an important place on an identical level with the others.

For the best inventory management, SIMMS 2012 Inventory Management software will serve perfectly as the tool the master needs.

Visit www.simmssoftware.com or email sales@kcsi.ca for more information.

Tracking Stock Warranties with SIMMS 2012

SIMMS’ 2012 Inventory Management system Warranty Tracking gives you complete control of items under warranty in your system as well as instant management of warranty information so that the replacement or repair processes can be begun and/or their progress can be followed. Warranties can be assigned upon an item’s manufacture or receipt into the system.

Within the Accounting features of SIMMS 2012, if a warranty claim period is decided to extend for longer than a year, it will be necessary to split the accrued warranty expense into a short-term liability for those claims expected within one year, and into a long-term liability for those claims expected in more than one year. You can quickly add the warranty data to items that are received on invoices in combination with other stock. Once received with assigned data, those particular inventory items retain that data on a permanent basis, adding to your customer’s satisfaction as well as providing you with important tracking data about all items that have accrued a consistent record of repair and replacement. Such items can be avoided for future purposes and your purchasing department can research more reliable — and possibly cheaper — items to stock.

Using SIMMS’ detail-conscious RMA and RTV features, you can get instant information to your customers so that they should not have to linger on waiting for replacement items or for the repairs of warranty items they possess. Settings in SIMMS allow for smooth coordination of stock that may have passed its warranty date so that you can truly master the replacement or repair process when service returns are recorded into SIMMS.

As with any responsibility you have to your customers, warranties must be handled with precision and speed. Warranty expenses must be controlled, defects must be addressed as soon as possible in order for you to avoid numerous recalls, and you need to see the financial impacts warranties have on your bottom line. SIMMS 2012 can help you handle all these tasks.

Visit www.simmssoftware.com for more information or email sales@kcsi.ca.

Information is the Currency of Inventory Management

As is true in any business, information is the most valuable commodity of use to every department. This is especially true of inventory management because when numbers are wrong regarding stock, the company’s profit margin itself could be diminished significantly. When you apply a policy regarding data and its accuracy within your company, there are many ways that owners and managers can improve the standards that they now employ.

First, the employees must support and be involved in the steps being taken in the improvements. Getting the support of employees across the warehouse and getting their feedback about the organizational structure of the warehouse so that the system changes become both logical and applicable. Managers have as one of their most important tasks to make sure that necessary and accurate information is made visible to all the right people. Employees should receive daily performance feedback to aid in driving process changes and to create better alignment throughout various warehouse activities.

The company needs to provide employees with varying access to performance metrics. It is important to have various roles and security in action to ensure that data is shunted to the necessary personnel while not inundating them with unnecessary information. The speed of access is important and the goal is toward making it useful and avoiding it being only considered a secondary afterthought. Electronic information, either through e-memoranda or display boards, can enhance floor operations and back-office procedures. Such are wonderful tools for increasing the use of performance data as well as supplying incentives to establish and create momentum for the newest activities and plans.

Information flow in both “directions” is invaluable and companies need a foundation from which to manage the information exchange. SIMMS 2012 Inventory Management software enables you to manage both data and performance of your business. Visit www.simmssoftware.com or email sales@kcsi.ca for more information.