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 firstname.lastname@example.org today.