Tag Archives: profits

Improve Your Turnover Rate with SIMMS

Often we wonder how to improve our turnover rates, which are the true mark of inventory management success. Having the stock on hand to easily fill any orders made by customers is the ideal, because inventory is only worthwhile if it is available when it is needed, so that the goal of converting it back into capital as soon – and as often – as possible can be met. The most robust and complete collection of features and functions available from any inventory and accounting software package in the world today awaits your use when you choose SIMMS.

Sales precision, purchasing reliability, scheduling, optimized manpower, shipping, receiving – all aspects of commerce are under your complete control, and with a comprehensive collection of reports on all aspects of your business, you can make the adjustments you need to keep the lead in your industry or business quarter.

SIMMS Inventory Management software helps you track the items that sell, as well as the ones that don’t, and then make quick improvements to your bottom line. Contact KCSI today to learn more about the advantages that SIMMS can bring to your company. ?

The Need for Better Transaction Policies


WithSIMMS 2013 Inventory Management software, users can easily track which suppliers are keeping up with your required schedule and which customers are buying the most from you. If they are costing you sales and forcing you to make excuses to your customers, then vendors have to be replaced. Your business requires that you not only to set standards of performance but also to measure up to it. Make as many improvements as you can as soon as possible, and you will begin to notice improvements.

The real fix for crucial aspects of doing business is policy – a repetitive step-by-step pattern of conduct that is repeated every time. A policy for every type of transaction is the only way to guarantee that there are no weak or wasteful moments. If you do not have policies in place already then use this checklist to begin the establishment of policies for:

  • Adjustments to on-hand quantities – Who approves adjustments, and why?
  • Assembly orders
  • Bin-to-bin transfers
  • Cash sales
  • Direct shipments
  • Emergency requisitions
  • Normal stock receipts
  • Requisitions
  • Transfers to other facilities
  • Returns of damaged material
  • Returns of non-stock material
  • Returns of stock material
  • Returns to the supplier
  • Sales orders to be delivered
  • Sales orders for non-stock
  • Scrapping and writing-off stock
  • Unexpected stock receipts

Contact KCSI today to learn more about how SIMMS 2013 can help you pinpoint all of your transactional shortcomings and then use proper procedures to convert them into strengths.

Backflushing of Stock


“We finished 5 bicycles. Deduct ten tires from the stockroom inventory.”

In many companies that manufacture goods for future sale, when the production is posted against the operation, the process is known as backflushing. The operator will generally enter the production order number, operation, quantity good, scrap quantity, and labor and machine information and then issue all the materials as one transaction just as would usually be done in the pre-production phase. One often uses the option to change particular item quantities and add particular scrap quantities. When you have your issuing program working in the background without the manufacturing department ever seeing its contents, such is known as blind backflushing.

Some advantages of backflushing are:

  • When you use bulk materials like sheet goods or dry goods, bar stock or roll stock, often exact quantities cannot be picked.
  • When using point-of-use materials, post-production issuing simplifies the issuing process by making it easier to conduct counts on your point-of-use materials. If you pre-production issued these materials, the system counts would have to be reconciliation with any orders having quantities issued but not yet consumed. One pointer is that if you post-production issue, after each post-production posting you need a system-to-actual-count match.
  • When scrap content is usual in the finished item and you finally have a good quantity approximate to the ordered quantity, you find this post-production issuing simplifies the issuing process because you will not be aware of how many you run until production is complete.

Backflushing is just a method for issuing materials that works well when applied properly and poorly when applied improperly. Processes that do not employ point-of-use materials, bulk materials, or those where production scrap does not encourage an increase in run quantities find no advantage from backflushing. The concept involved is similar to the reversal of the flow of materials to drive contaminants from a filtering device, such as are what is performed at a water treatment plant, where water that is filtered through sand (to remove impurities) will have its flow reversed through the sand to force any contaminants to where they can easily be removed. In any production process, sometimes applying the backflushing concept can reveal wastage and unnecessary steps in the process that can be left out of future production runs, thus saving time, materials and labor.

Absorption Costing


Some of the direct costs associated with manufacturing a product include wages for workers physically manufacturing a product, the raw materials used in producing a product, and all of the overhead costs, such as all utility costs, used in producing a good. This method is known as Absorption Costing.

As opposed to the most-used method, Variable Costing, Absorption Costing treats operational overhead in a different way. Where Variable Costing only takes into account costs directly affected by changes in production volume, Absorption costing takes into account all direct and indirect costs of production. Variable Costing is typically used internally for budgeting and forecasting, while Absorption Costing is suited for external financial reporting.

Absorption costing includes anything that is a direct cost in producing a good as the cost base. This is contrasted with variable costing, in which fixed manufacturing costs are not absorbed by the product. A great many business leaders prefer absorption costing because fixed manufacturing costs provide future benefits.

It may the method worth trying in your business.

Cash Flow and Inventory

Water tap dripping dollar bills, Water waste concept

Cash that you have to spend before you can get paid is known as working capital. It is used for inventory and funding your operation. Many companies, if not most, borrow to support their short-term cash needs. If they do not manage cash well, they can run out and the bank may not be willing to lend more. One enormous drain on a company is inventory stock. Reduce inventory stock and you increase the amount of available cash for running your business. It takes cash to buy or build the inventory you are going to sell. If you have no cash, then you have no way to pay suppliers or to make payroll. This seemingly bottomless hole is something businesses must avoid.

Stock levels not only affect the flow of cash, but also affect profits. Each dollar gained in reducing inventory will lead to a dollar’s worth of working capital needed before you have to borrow needed funds from elsewhere. Borrowing less means lower interest rates that you have to pay as well. One might conclude – and quite accurately, too – that every dollar you reduce your stock holding by, two dollars in profit is made.

Demand must drive stock management with the goal being “dollar focus”. This goal is required in order for buyers and planners will make more effective choices and working first on the most important part numbers. The stock that brings the largest dollar counts must be watched closely so that adjustments can be made quickly.

Buyers’ and planners’ primary concerns are to manage stock dollars and then increase the “performance” of the inventory. Focal points are inventory dollars, order quantities and safety stocks – all of which must be in step with current demand. Whatever tools are used, businesses must master both their management of stock levels and operating capital.

Purchasers and policy planners need to decrease stock and increase the margin of cash for running the company. A useful reminder to business leaders is that far more businesses fail due to a lack of cash than from a lack of profits.

SIMMS 2013 Review


SIMMS 2013 is an advanced inventory management, accounting and manufacturing software package that provides versatility and comprehensive room for your company’s growth. It’s a fluid system that  is easy to set up and easy to use that has quickly become the current best choice for small and large businesses, that will help with increased profits and more fluid productivity.

Whether your company incorporates manufacturing, customer relationship management, accounting, Point of Sale (POS), E-commerce, inventory management, kitting, or project coordination, SIMMS delivers the combined benefits of many advanced productivity tools and coordinates all of your specialized needs. From phantom kitting to coordination of Tool Crib details, from sales requirements to purchasing demands, SIMMS employs the inventory valuation methods you need, and the benefits of customization to distance itself from its competitors and providing you with a greater — and more immediate — ROI (return on investment) than any other accounting/stock software solution.

For you to exceed your own business expectations, you need software that can grow and change with your needs, and SIMMS is not just another out-of-the-box solution that comes with its own stunted growth and limited number of features. It grows with you as you use it, and you deserve the quantitative advantages it provides. For more information on how SIMMS can help you take and keep the lead in your market, visit www.simmssoftware.com or email sales@kcsi.ca for more information.

E-commerce with SIMMS 2013


Everyone knows that the hot word in e-commerce and any online store today is search engine.  SIMMS Inventory Management software allows your e-commerce website to be search engine friendly, which means more visits to your online store, which means more sales.  A few of the search engine features SIMMS E-commerce Software Solution offers:

  • EVERY product, category, and department page can have their own custom search engine meta tags (title, keywords, description, no script blocks, etc)…
  • Static Product & Category Pages: Designed to allow search engines to fully crawl and index EVERY product & category page in  your store.
  • Google XML Site Maps Supported: a direct Google search engine submission method sanctioned by Google
  • Yahoo! Xml Site Maps Supported: a direct Yahoo! search engine submission method sanctioned by Yahoo
  • Fully dynamic page titles, and search engine meta-tags
  • Here is how SIMMS E-commerce Software Solutions will benefit your online customers:Customer can view Order History
  • Customer has address book
  • Customer can easily re-order any prior order
  • Multiple billing/shipping addresses per customer (similar to Amazon.com style checkout)
  • Recurring orders (e.g. for auto ship products, monthly subscription fees, monthly service type products, etc
  • Skip account creation on checkout

For more information on e-commerce, visit www.simmssoftware.com or e-mail sales@kcsi.ca for more e-commerce information of how SIMMS Inventory Management software can help you.

Management of Transportation


With outsourced transportation you seek flexibility and ability to combine different carriers or services. Here you need efficient and certified integration and collaboration with carriers, ability to follow up their performance and to automate freight costing and payment.

Owning or contracting a fleet enables you to build increased internal competence around route and load planning to increase vehicle utilization and customer service. Here you need dynamic route and load planning of vehicles, with real-time links to order management for prompt delivery promising, warehouse execution for wave planning and dock door allocation as well as last minute changes.

Concepts that need to be controlled are as follows:

  • Performance measurements & standards
  • Transportation cost totals (optimized)
  • Product movement by efficiencies, rates and traffic lanes
  • Allocation (modal)
  • Outsourcing – 3PL/4PL Partner assessments
  • Tactical cost improvements


  • Truckload
  • Less Than Truckload (LTL)
  • Private Fleet
  • Rail
  • Intermodal
  • Air
  • Express/Small Parcel

For more information on how SIMMS 2013 can help you with your transport management needs, visit www.simmssoftware.com or email sales@kcsi.ca.

Landed Costs in SIMMS 2013


The calculation of landed costs for your stock items can seem to be mysterious and complex. Correct formulas needed to calculate the numbers you need before your markup goes on top can make this a challenge to the best of your inventory personnel. The steps involved in this process are as follows:

  • First, add the item’s purchase price and the cost of shipment. Ascertain if the freight forwarder handling the shipment if insurance is included in the shipment fees. If it is not included, add the cost of shipment’s insurance.

  • Find the customs fees, taxes and duties for the shipment. If the shipment is coming from a foreign country, use your country’s Harmonized Tariff Schedule to enter the type of item, and then use the pop-up listing to find the further description of the particular item and select its item code for additional information and a rate.

  • Divide this completed cost of the shipment by the number of items within it to calculate the resultant landed price per unit.

SIMMS 2013 Inventory Management software will automatically calculate your landed costs for you, which will assure the accuracy of your projected profits and let you concentrate more time on other details. Contact KCSI today to get information on how SIMMS can handle your landed costs challenges for you.

Inventory Turnover

Stock turnover is important not only to your business’ bottom line, but also adds to your company’s reputation as a source of customer satisfaction.

Your holding costs increase for items that remain on your shelves for extended periods of time, i.e. that do not turnover. Items that “turn over” twice per year, or three times or more (in that time) are the goal you should have in mind. Stock turnover, thus, is a great litmus test of how well your business is doing. Increasing your inventory turns can be achieved through the application of three particular methods:

1) Comparison must be kept within the type of business that you have. You can’t compare the sales of music CDs with businesses that shampoo carpets. Otherwise, distorted comparisons will occur. Knowing what your direct competitors are doing for volume turnovers is the best guide for improvement of your bottom line.

2) In regard to items that haven’t sold, and others that have become obsolete, your action must be to make plans for offloading the eldest stock as well as pre-investment in replacement of all those items with the newer and more in-demand pieces.

3) As mentioned before, the increase of inventory turns helps to countermand your holding expenses. Spending less resources toward on costs such as insurance, utilities,  rent, theft and other costs needed to maintain stock ready for sale. You’ll see an increase in your profitability and net income. Revenue from sales is the constant requirement in this phase.

To learn more about inventory turnover and how you can make changes to benefit your business, visit www.simmssoftware.com or email sales@kcsi.ca for more information.