What is Order Management System (OMS)?

When it comes to the question ‘’What is OMS”, there are a variety of different definitions, but generally: An order management system, or OMS, is a software application that helps businesses manage their sales and orders. It can be used to track customer data, inventory levels, shipping information, and more. Typically, an OMS will interface with other backend systems such as ERP or accounting software to provide a comprehensive view of all order-related activity

Types of OMS software 

Now that you’ve grasped the answer to What is OMS, let us walk you through the next important part. There are different types of order management system software available, each with its own advantages and disadvantages. 

• ERP: One type of order management system software is the enterprise resource planning (ERP) system. This type of system integrates all aspects of a company’s operations, including order management, into one comprehensive system. ERP systems are usually very complex and require a significant investment of time and money to implement. However, they can offer a high degree of automation and efficiency for businesses that need to manage large volumes of orders.

• CRM: Another type of order management system software is the customer relationship management (CRM) system. This type of system is designed to help businesses manage their customer relationships, including orders. CRM systems can be used to track customer orders, manage customer contact information, and generate reports. They can also be used to automate marketing and sales processes. CRM systems are typically less expensive than ERP systems, but they may not offer as much order management functionality.

• SCM: The third type of order management system software is the supply chain management (SCM) system. This type of system is designed to help businesses manage their supply chains, including orders. SCM systems can be used to track inventory levels, manage supplier relationships, and generate reports. They can also be used to automate manufacturing and distribution processes. SCM systems are typically more expensive than ERP systems, but they may offer a more comprehensive order management solution for businesses that need to manage complex supply chains.

How does an OMS work and what are its benefits for businesses of all sizes?

After deeply understanding what is OMS, it’s important for a business to find how it works to benefit your business.  The overall mission of an OMS is to provide visibility into available-to-promise (ATP) inventory at your warehouse and stores as well as from third-party suppliers like 3PL firms or drop shipping locations. This helps with planning for future needs, but also enables the OMS’ other features such as robust order capture validation release pick pack ship functionality which includes Drop Shipping where customers can purchase directly from Amazon without having a physical presence). 

Afterward when they’ve received their items automatically via shipping confirmation email along with easy payment options including credit card payments all tracked through one system

The benefit of using OMS

OMS software can be used to track orders from the time they are placed until they are fulfilled. This information can be used to generate reports, help with forecasting, and more. There are many benefits of using an OMS, especially for businesses that sell products online. 

Reduce cost

Perhaps the most obvious benefit is the cost savings that can be achieved. With improved oversight of inventory, businesses can avoid overstocking and the associated costs. Additionally, order management systems can help businesses source inventory from around the globe, taking advantage of lower prices and a wider selection.

Real-time order status 

Another key benefit is the improved customer service that can be provided. With real-time order status available, businesses can keep their customers updated on the status of their orders. This can avoid frustration and confusion, and ensure that customers are kept happy with the level of service they receive.

Global Inventory and Sourcing

The power of your business lies in its capacity to grow. Showing live inventory on a website enables customers not only to purchase but also to inform themselves about when they can get their products or services, and how much it will cost them locally as well as across international borders – all without leaving the site! For example, with this capability Magento’s global sourcing option you are able to show real-time information which ensures the greatest efficiency coupled with the lowest possible price point

Why do you need an OMS in your business?

Implementing an OMS can help improve your business in many ways. Order management systems can save businesses time and money, making them a valuable addition to any company.

Moreover, businesses also benefit from an OMS by streamlining the order fulfillment process. This can manage everything from point of sale to delivery. eCommerce sellers can especially benefit from an OMS that can automate logistics, shipment, returns, and interface with platforms like Amazon, eBay, or AliExpress.

Features to look for in an OMS  

If you’re considering an order management system for your business, be sure to consider your company’s needs. Look for features like order tracking, inventory management, reporting, and integrations with other software platforms. With so many options on the market, you’re sure to find an OMS that’s perfect for your business.

Integrations

In choosing an operations management system, it’s important to consider how your chosen app will integrate with other aspects of the business. Standalone software must work alongside accounting and inventory tools while even a complete digital platform needs some degree of integration into sales channels or marketing processes too. Before making this choice there are several things you should think about-do they require changes across the board in order for them all to communicate properly? What kind do we want: a simple plugin that just slides over what already exists without any modification

Reporting & Analytics

Order management systems provide a wealth of data that can be used for many purposes, including tracking performance and identifying areas needing improvement. They also help generate accurate forecasting about the future by understanding current trends in your business operations so you are able to make more informed plans with confidence

The power behind robust reporting capabilities is not just being able to identify where things stand now but what’s happening overall over time-this knowledge provides crucial insights into how we’re performing as well ahead!

Customer Experience

While not designed to be customer-facing, an OMS can have a positive impact on your customers. How the right system ensures that your business is successful and thriving, not struggling or dead-ended like some other companies might be experiencing with their current software solutions. 

This is why it’s important that when creating an OMS, you should take into consideration all aspects of how different platforms work and what currencies would mean for customer experience. An example might include designing a solution tailored specifically toward handling multiple sales channels or international clientele; then again – this may not apply to all companies.

Scalability

Another important consideration is scalability. As your business grows, you’ll need an order management system that can handle increased volume without slowing down or becoming less reliable. Look for a system that is designed to scale easily, so you can avoid any disruptions as your business grows.

How can you choose the right OMS for your company’s needs? 

Every enterprise resource planning system (ERP) is unique, and it should be customized to meet the specific requirements of each firm. This is due to the fact that every business has a unique set of products, a different customer base, and a different order fulfillment system.

When selecting order management systems for your company, there are a few crucial steps to bear in mind, including:

Define your objectives

When outlining your objectives, keep in mind that the scalability of your order management system should be taken into consideration. An OMS could help you handle more orders than ever before, even if your business is still in its early stages. You’ll need a system that can expand along with your company.

Create a Proposal

Make use of the information you gained in step one to create a complete proposal. In it, you must spell out exactly what you expect from a new OMS. Consider factors such as order numbers, sales channels, and future plans while developing your business plan. Putting together such a document can assist you in organizing your own thoughts. It will also make it clear to vendors what you expect of them.

Consider functionality

Functionality is one of the most important factors to consider, as you’ll want to make sure the system can handle all of your needs.

If you’re considering using an OMS for your business, it’s important to choose software that is scalable and can grow with your business. You’ll also want to consider your specific needs and find an order management system that offers the features you need. For example, if you sell products in multiple currencies, you’ll need an OMS that supports global payments.

 Research & Reach Out to Vendors

Check out what’s currently available on the order management system market. Do you know of any providers who might be able to assist you with your requirements? Make a selection of potential candidates, and then contact the most promising candidates on your list. 

Implementation with Vendors

Any order management software company worth their salt will want your installation to be a success. Often, they will support and guide you through the procedure. After all, they have a vested interest in seeing that you get the most out of their program. There’s a better chance of this happening if you work closely with a vendor from the start.

Top best eCommerce OMS software for business

Based on the explanation of “what is oms” and how it benefits your business above. It is important to find the best eCommerce software that fits your business. And among many order management system software options available on the market, it can be tough to decide which one is right for your business. To help you make a decision, we’ve compiled a list of the top best eCommerce order management systems (OMS) software:

Quickbooks commerce

Quickbooks Commerce is a popular order management system that offers a wide range of features to help businesses manage their orders. It integrates with popular eCommerce platforms such as Magento and Shopify, making it easy to keep track of orders placed on different platforms. Quickbooks Commerce also offers powerful reporting tools to help businesses track their performance.

Brightpearl

Brightpearl is another popular order management system that offers similar features to Quickbooks Commerce. However, it also offers some unique features, such as the ability to create order workflows. This can be helpful for businesses that need to manage a large number of orders. Brightpearl also offers robust accounting features, making it a good choice for businesses that need to track their finances.

Odoo

Odoo is a less well-known order management system, but it offers a wide range of features that make it worth considering. It integrates with popular eCommerce platforms such as Magento and PrestaShop, making it easy to keep track of orders placed on different platforms. Odoo also offers powerful marketing and sales features, making it a good choice for businesses that want to grow their online presence.

As a result, Magenest can provide you with an Odoo ERP setup that includes everything from customization to implementation to support and maintenance. If you have any questions, feel free to reach out to our professionals. We are glad to give you free Odoo ERP software consulting to help you grow your business. 

Zoho Inventory

Zoho Inventory is another order management system that offers a wide range of features. It integrates with popular eCommerce platforms such as Shopify and BigCommerce, making it easy to keep track of orders placed on different platforms. Zoho Inventory also offers powerful order tracking and reporting features, making it a good choice for businesses that need to track their performance.

Orderhive

Orderhive is a free order management software that is simple, easy to use, and allows you to tackle the manual activities of fulfillment that are the most despised but absolutely necessary for a sales-based company operation, such as shipping orders. It’s also possible to purchase paid versions with a variety of pricing options. You have the option to choose it as and when you need it to be available.

Which order management system is best for your business? It depends on your specific needs. If you need a powerful system with a wide range of features, Quickbooks Commerce or Brightpearl may be the best choice. If you need a less well-known system with unique features, Odoo or Zoho Inventory may be the better choice. Ultimately, the best order management system for your business is the one that meets your specific needs.

In conclusion 

An OMS can benefit your business in a number of ways, from improving customer service to increasing efficiency. By automating the order management process, you’ll be able to improve your customer satisfaction rates while freeing up time and manpower to focus on more important tasks. If you’re looking for a system that can help improve your bottom line, an OMS may be the right solution for you. Contact us to find out more about how an OMS can benefit your business and see if it’s the right fit for you.

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Many business professionals have known about ERP, however, they may not fully comprehend what enterprise resource planning solutions can achieve for their organizations. This blog will fully explain what ERP is, how it works, what it can do for your organization, and how to select the best system.

What is ERP?

Enterprise resource planning (ERP) is a process used by organizations to manage and integrate the parts such as planning, purchasing, inventory, sales, marketing, finance, human resources, and more. ERP systems assist them in implementing resource planning by unifying all of the operations required to manage their businesses into a single system.

What is an ERP system and how does it work?

ERP system is a type of software used by businesses to handle day-to-day company activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. A comprehensive enterprise resource planning package also contains enterprise performance management software, which aids in the planning, budgeting, forecasting, and reporting of an organization’s financial outcomes.

An ERP system works by reducing the number of resources required to manage a firm properly while yet maintaining profitability and growth. The ERP system differs from a single application in that it allows your company’s other enterprise modules to share a single database.

The system gathers information from many aspects of the company. It centralizes the data so that employees who require it may access it. It breaks down the silos that plague many firms and ensures that appropriate information is available to those who want it.

Almost every ERP system is nearly completely automated. It conducts the data input in the backend for you and exchanges the information with other units that require it.

For example, when a shipping order is placed for the final item in stock, the inventory management modules must record this information and notify the appropriate departments so that the inventory may be replaced. The sales staff will also be notified so that it does not make promises it cannot keep.

Outstanding benefits of an ERP

Cost savings

Businesses can reduce mistakes and the need to hire new employees at the same rate as the company grows thanks to repetitive operations. Cross-company insight makes it simpler to identify inefficiencies that drive up costs and lead to improved resource deployment across the board. And, with cloud ERP, businesses may immediately discover added value from the software that exceeds what they are spending.

Streamline workflow

Employees with enterprise resource planning system access may manage the status of projects and tasks. This visibility may be very important to managers and leaders, and it is significantly faster and easier than finding the correct papers and asking colleagues for updates.

Reporting and analytics

Leading systems provide powerful reporting and analytics features that enable users to measure KPIs and present any metrics or comparisons. Because an ERP is all-encompassing, it may assist a firm in understanding how a change or problem with a process in one department impacts the rest of the organization.

Data security

ERP vendors recognize that your system contains essential, sensitive data and take the necessary precautions to keep it safe. As the number and scale of cyberattacks rise, this vigilance is more critical than ever. Cloud ERP software employs cutting-edge security mechanisms to ensure that your business is not the victim of a harmful attack.

Reduce risk

Financial controls may be strengthened and fraud reduced through granular access control and established approval protocols. Furthermore, more precise data prevents errors that might result in missed sales or fines. Finally, being able to observe the state of the whole operation allows staff to immediately deal with dangers caused by business disruptions.

Enhance Collaboration

Employees perform best when they cooperate. Enterprise resource planning solutions make it simple to transfer information among teams, such as purchase orders, contracts, and customer-support records. It breaks through departmental barriers by providing employees with real-time data on relevant business operations.

Scalability

The perfect ERP system will be scalable and adaptable enough to meet your company’s demands and expansion in the future. Cloud systems, in particular, adapt to minor and substantial operational changes as the amount of data captured by the business grow and the demand for access grows.

Flexibility

While ERP software assists firms in adhering to standard practices, it also allows for the support of unique procedures and objectives. Administrators may use the system to develop company-specific processes and automated reporting for various departments and executives. An enterprise resource planning solution boosts your company’s innovation and creativity.

Manage External relationship 

An ERP system may help a company’s connections with its partners and customers. It may give information on suppliers, shipping carriers, and service providers, with the cloud allowing for even better and more easy information interchange. When it comes to consumers, the system can track survey replies, support requests, refunds, and other information so that the business can keep a pulse on client happiness.

3 Types of ERP Systems

On-premise

These systems are installed on your own servers, so you have more control over them. They’re usually more expensive than cloud-based enterprise resource planning systems, but they’re also more customizable and often have better security.

Cloud-based

These systems are hosted on the cloud, so they’re accessible from anywhere. They’re also usually more affordable than on-premises ERP systems. However, they can be less customizable and may have poorer security. Cloud ERP is becoming the most preferred deployment technique for a variety of reasons, including fewer upfront costs, more scalability and agility, simpler integration, and much more.

Hybrid

These systems combine the best of both worlds, with some components being hosted on the cloud and others being installed on-premises. They can be more expensive than both cloud-based and on-premises ERP systems, but they offer the most flexibility.

Must-have modules of an ERP system

Enterprise resource planning systems consist of a number of modules that allow for the efficient and effective management of business operations. Some of the most commonly used ERP modules include:

• Financial management: This module covers all aspects of financial management, including budgeting, accounting, and financial reporting.
• Human resources management: This module helps organizations to manage employee records, payroll, and benefits.
• Sales and marketing: This module aids in the management of customer data, sales processes, and marketing campaigns.
• Supply chain management: This module helps organizations to manage their supply chains, from procurement to delivery.
• Manufacturing: This module helps organizations to manage production processes and inventory.

Enterprise resource planning modules can be customized to meet the specific needs of a business. In addition, many ERP vendors offer add-on modules that provide additional functionality. For example, a company may need a financial reporting module that is not included in the standard ERP system. In these cases, the vendor will likely have a partner that can provide the required module.

ERP systems are an important part of business operations, and the modules listed above are some of the most commonly used. When selecting an ERP system, it is important to consider the needs of the organization and ensure that the system has the required modules.

Fundamental features of ERP systems 

There are many different enterprise resource planning systems on the market, each with its own unique features and capabilities. However, all ERP systems share some common features that can be beneficial for businesses of all sizes.

Some of the most common features of ERP systems include:

• Centralized database: As mentioned above, one of the key features of ERP systems is their centralized database. This allows businesses to store all of their data in one place, making it easier to access and manage. Additionally, it can help businesses avoid duplication of data and ensure accuracy of information.
• Process automation: ERP systems often include tools that automate business processes, such as order management, invoicing, and shipping. This can help businesses save time and improve efficiency.
• Reporting tools: ERP systems come with a variety of reporting tools that allow businesses to track their performance. This can help businesses make informed decisions about their operations and identify areas for improvement.

ERP examples in different industries

Manufacturing

ERP systems are used to manage production lines and inventory. This allows manufacturers to respond quickly to changes in demand and keep up with shifting market conditions. Enterprise resource planning systems can also help reduce the amount of stock that is held in inventory, leading to lower costs and improved cash flow.

Retail

In the retail industry, ERP systems are used to manage store operations and inventory. This allows retailers to provide better customer service by having the right products in stock and being able to respond quickly to changes in customer demand. Enterprise resource planning systems can also help retailers streamline their back-end operations, leading to improved efficiency and reduced costs.

Banking and financial services

ERP systems can help banks and financial institutions manage their customer accounts, track financial transactions, and monitor compliance with regulatory requirements. Additionally, banks and financial institutions can easily generate reports on customer activity and risk exposure with ERP software. 

Healthcare

Enterprise resource planning systems can help hospitals and other healthcare organizations manage their patient records, track inventory levels, and manage supplier and customer relationships. Healthcare organizations can use ERP systems to generate reports on patient activity and performance.

Education 

Educational institutions often use ERP software to manage their student records, track financial transactions, and monitor compliance with regulatory requirements. It can provide educational institutions with the ability to generate reports on student activity and performance.

Transport and logistics 

Companies can track and control their freight shipping and delivery operations, track inventory levels, and manage supplier and customer relationships. Generating reports on freight shipping and delivery activity is more effective with organizations using ERP systems.

Food and beverage

Besides generating reports and analyzing data, food and beverage companies can manage their production operations, track inventory levels, and manage supplier and customer relationships.

Government and public sector

ERP systems can assist government agencies to control and track their financial resources, tracking inventory levels, and managing supplier and customer relationships. 

Choose ERP systems based on business size

Small business

Despite the many benefits that ERP systems offer businesses of all sizes, small businesses often find them to be cost-prohibitive. This is because the smaller the company, the less bargaining power it has when negotiating a price with a software vendor. In addition, small businesses may not have the IT staff on hand to install and maintain an ERP system, further adding to the cost.

Medium-sized businesses 

Medium-sized businesses are in a much better position to take advantage of ERP systems. They usually have more negotiating power with software vendors and the IT staff necessary to install and maintain the system. In addition, medium-sized businesses often have more complex operations than small businesses, making an ERP system more beneficial.

Large businesses

Large businesses are the most likely to take full advantage of ERP systems, as they have the resources necessary to implement and maintain them. In addition, large businesses often have complex operations that can benefit greatly from an ERP system. 

ERP system implementation

Stages of ERP Implementation

ERP systems are often large and complex, making their implementation a multi-stage process. Here are the four main stages of ERP implementation:

1. Planning

2. Implementation

3. Testing

4. Deployment/ Rollout

Planing 

An effective plan properly ensures the success of the project. During this phase, you will develop a clear understanding of your business needs and objectives. You will also need to select the right ERP system for your organization and put together a team of experts to help with the implementation.

Implementation

This stage can be broken down into several sub-stages, including system setup, data migration, and testing. It’s important to take your time and make sure everything is done correctly so that the system works properly and meets your needs.

Testing 

This stage is vital to ensure that the ERP system is functioning as expected. This stage typically includes user and system testing, and regression testing to make sure that no previous problems have been created by the new system.

Deployment/ Rollout

After testing to ensure that your ERP system doesn’t have any mistakes, the technical team will go live with your system. During this stage, you will need to provide training for your employees and make any necessary changes to your business processes. You will also need to ensure that the system is functioning properly and meeting your needs.

Cost of ERP system

The cost of ERP system implementation can vary depending on a number of factors. Some of the main factors that can impact the cost of ERP system implementation include:

• Size and complexity of the organization
• Scope of the project
• Functionality required
• Number of users involved
• Geographical location
• Provider chosen
• Duration of the project

The cost of ERP system implementation can also vary depending on whether the organization is implementing the system in-house or outsourcing the project to a third-party provider. In-house implementations are typically more expensive, as the organization will need to purchase and configure the hardware and software and hire and train staff to use the system. Outsourcing the project to a third-party provider can reduce costs, as the provider will typically have experience with ERP system implementations and can offer a more efficient and cost-effective solution.

Takeaways

When considering the use of ERP system implementation, it is important to consider the long-term benefits of the system. ERP systems can improve organizational efficiency, help to optimize business processes and provide a single source of truth for data. The benefits of an ERP system often outweigh the costs of implementation, making it a worthwhile investment for organizations.

If you are considering choosing an appropriate ERP system, just connect to Magenest. As a digital transformation expert having seasoned experience in ERP implementation and corporate with famous partners, namely Odoo and Adobe, Magenest will give you the ultimate solution for your company. Let’s contact our team to have more beneficial information!

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Inventory analysis is a technique used by marketers and developers to track, measure, and optimize the stock of products or services. By understanding what inventory items are selling well and which ones aren’t, retailers and businesses can make the best data-driven decision. 

In this blog post, we will define inventory analysis, explore some common techniques and KPIs, and discuss how you can use inventory analysis to improve your business’s bottom line. Let’s get started!

What is Inventory Analysis?

Inventory analysis is the practice of identifying and cataloging the items in a company’s stock. This can be done manually or through automated means. The goal of inventory analysis is to get an accurate picture of what a company has on hand so that they can make informed decisions about ordering and stocking levels. 

There are several different techniques that can be used for inventory analysis, and the key performance indicators (KPIs) that you choose to track will depend on your specific needs and goals. One of the most important KPIs for Inventory Analysis is the Inventory Turnover Ratio. This measures how efficiently a company is using its Inventory to generate sales. Other KPIs could include Days of Inventory on Hand and Inventory Costs as a Percentage of Sales.

Benefits of inventory analysis

Inventory Analysis is a valuable tool for businesses of all sizes. Inventory analysis can help improve your organization’s cash flow, delight customers with better pricing, and reduce inventory waste. By reducing stockouts and project delays, inventory analysis can also help improve your organization’s overall efficiency.

Additionally, inventory analysis also can help you get the best prices from suppliers and vendors. By understanding your organization’s inventory needs and trends, you can make more informed decisions about where to allocate your resources. This can lead to improved profitability for your business. 

Inventory analysis is a valuable tool for any organization looking to improve its operations and performance. For example, Wal-Mart increased its Inventory Turnover Ratio from 3.5 to 6.2 by using inventory analysis techniques. And Coca Cola was able to reduce its Inventory Costs as a Percentage of Sales from 30% to 15%.

Techniques for inventory management 

There is a variety of Inventory Management Techniques that companies can use in order to ensure they have the right amount of stock on hand and are not paying for too much or too little inventory. Below are some common Inventory Management Techniques.

• Just-in-Time Inventory Management is a popular Technique for companies that want to reduce the amount of inventory they hold. This approach involves ordering products only when they are needed, which helps to reduce storage costs and improve cash flow. However, it can be difficult to implement and may not be suitable for all products.
• Dropshipping is a Technique that allows companies to sell products without having to carry any inventory. When a customer places an order, the company will contact the supplier, who will then ship the product directly to the customer. This eliminates the need for the company to invest in stock, and can be a useful tool for expanding their product range.
• Cross-docking is another Inventory Management Technique that can help companies save time and money. This approach involves receiving products from suppliers and shipping them directly to customers, without storing them in between. This helps to reduce the amount of time products spend in transit, and can be a useful tool for companies that sell products online.
• Consignment Inventory is a Technique that allows companies to store products at the supplier’s warehouse until they are sold. This can be helpful for companies that want to avoid the cost of storage, and can help to improve cash flow by reducing the amount of time it takes for products to be sold. However, it can be difficult to track inventory levels using this approach.
• ABC analysis: ABC analysis classifies inventory into three categories: A, B, and C. Items in category A are considered the most important and should be given the highest priority when it comes to stock levels and order quantities. Items in category B are less important than those in category A, and items in category C are the least important.

Choosing the right Inventory Management Technique is important for ensuring that your company has the right amount of stock on hand while avoiding the cost of over or under-stocking. By understanding the different Inventory Management Techniques available, you can make an informed decision about which one is right for your business.

Key Inventory Analysis Metrics

When it comes to inventory, there are a few key metrics you need to be aware of in order to make sure your business is running as smoothly as possible. Let’s take a look at each of these metrics and what they mean for your business.

• GMROI (Gross Margin Return on Inventory) measures the effectiveness of your inventory management by indicating how much profit is generated from each dollar invested in inventory. This metric is especially important for businesses that carry a large amount of inventory, as it can help you determine whether or not that investment is profitable.

• CSL (Conversion Selling Level) measures the average number of products sold per customer visit. This metric can help you to determine how much inventory you need to keep on hand in order to meet customer demand.

• ATP (Available to Promise) measures the amount of stock you have available to sell at any given time. This metric can be helpful in preventing stockouts and ensuring that you always have enough product on hand to meet customer demand.

• Inventory Turnover Rate indicates how often your Inventory is sold and replaced over a period of time. This metric can help you to determine whether or not you need to stock more or less inventory in order to maintain a desired level of sales.

• Stockout Rate measures the percentage of time that you do not have any product available for sale. A high stockout rate can be very costly for a business, as it can lead to lost sales and customers.

• Sell-Through Rate measures the percentage of products that are sold as compared to the amount of products that are offered for sale. This metric can help you to determine whether or not you are offering the right product mix to your customers.

• Back Order Rate measures the percentage of time that orders are placed but not filled due to a lack of inventory. A high back order rate can be very costly for a business, as it can lead to lost sales and customers. By understanding these key metrics, you can take steps to improve your inventory management and ensure that your business is running as smoothly as possible.

Example of Successful Company using inventory analysis techniques

Apple

Apple is a company that is known for its innovative products and cutting-edge technology. However, what many people don’t know is that behind the scenes, Apple has a very efficient Inventory Management system in place. The company uses an Inventory Analysis tool to track stock levels and forecast future demand. This helps them to ensure that they always have enough stock on hand, while also avoiding overstocking. As a result, Apple has been able to maintain a high level of customer satisfaction while keeping its inventory costs low.

Toyota

Toyota is another company that is well-known for its efficient Inventory Management. The automaker uses a variety of tools, such as Kanban cards and inventory forecasting software, to track stock levels and plan production. This allows Toyota to ensure that they always have the right amount of parts on hand, while also minimizing waste. As a result, Toyota has been able to maintain a high level of quality while keeping its inventory costs low.

Glossier

Glossier is a cosmetics company that is known for its high-quality products and trendy designs. The company has achieved this by using an Inventory Management system that is based on demand forecasting. Glossier forecasts demand for each product and then produce only the amount that is needed. This system has allowed Glossier to keep its inventory costs low, while still offering a large selection of products.

IKEA

IKEA is a furniture retailer that is known for its low prices and stylish designs. The company has achieved this by using an Inventory Management system that is based on just-in-time (JIT) inventory principles. JIT Inventory relies on having a very small amount of inventory on hand so that goods are only ordered and produced when they are needed. This system has allowed IKEA to keep its inventory costs low, while still offering a large selection of products.

How to Start using Inventory Analysis in your Business?

An inventory audit is the first step in using inventory analysis. This is when you review all of your stock and determine how much you have, what it’s worth, and how it’s being used. Inventory management software can help make this process easier by tracking stock levels and usage trends.

Inventory management software is an essential tool for any business looking to improve its inventory analysis. By using them, you can make sure that your stock levels are always in line with what you need, minimizing waste and maximizing profits

In fact, Odoo is one of the most effective inventory management tools available. A wide range of capabilities is available for handling various business tasks such as eCommerce management, customer relationship management (CRM), point of sale (POS), supply chain management, and inventory management. Furthermore, It is possible to handle and track numerous delivery orders, dropshipping orders, receptions, and requests for inventory items with the help of Odoo ERP inventory management software ERP. Additional shipping providers such as UPS, DHL, FedEx, and even local post offices are supported by the specialized modules as well. The use of this function makes the process of managing shipping operations much simpler and more convenient.

Final thoughts on Inventory Analysis

Inventory analysis is a critical component of effective supply chain management. By understanding your inventory position and trends, you can identify opportunities for growth and improvement in your business operations.  

Moreover, If you are searching for an Odoo ERP implementation, Magenest can provide you with all allied services in Odoo, including customization, implementation, support, and maintenance for future requirements. We have been an Odoo silver partner for several years and have a wide range of experience in assisting customers in the development of inventory management systems. If you have any questions, you can contact our professionals to find out more about how service can help you achieve success.

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What is inventory carrying costs and why they’re important?

Inventory carrying costs are the expenses associated with holding inventory. These costs can include things such as the opportunity cost of capital, storage, and handling costs, and insurance premiums. Inventory carrying costs are important to consider because they can significantly impact a company’s profits.

Inventory carrying cost is composed of 4 categories:

• Capital costs: Amounts paid for the purchase of inventory or raw materials, as well as any related financing expenses (such as interest) Approximately 25 percent of total inventory value is accounted for by this cost category. 

• Inventory service costs: The price of storing items in a warehouse, including the cost of inventory management software, hardware purchases, insurance, and government fees and taxes.

• Inventory risk costs: The risks of your inventory due to obsolescence, expiration or damage are high. In addition if you store items for too long in the wrong place their value may drop compared with what it was when they were first sold because people have less incentive not to buy something that is already out-of -date!

• Inventory storage space costs: The cost to purchase or rent warehouse space, move items in and out of the facility as well as pay for physical security can be extremely high. If we utilize third party logistics providers (3PL), then their rates could fluctuate depending how much volume there has been throughout this period but at least now I know what kind information will help me make an educated decision about hiring them.

In addition to the four categories of expenses listed above, there are opportunity costs, which are investments and improvements lost due to inventories. While concrete expenses like storage space rental are easy to assess, intangible expenditures like this opportunity cost are more difficult to define.

Inventory carrying costs are an important statistic that can help businesses to track their inventory more efficiently and reduce the amount of time and money spent on Inventory management. In fact, The presence of high carrying costs may indicate that your organization has more inventory on hand than it requires based on demand, that you need to change the frequency with which you make orders with manufacturers or distributors, or that you may improve your stock movement. Moreover, This software can automate many of the tasks involved in Inventory management, making it easier and faster to manage Inventory.

How to measure inventory carrying costs?

Carrying costs are the expenses incurred as a result of having inventory on hand. There are a few different ways to calculate carrying costs, so let’s take a look at each method.

The first way to calculate carrying cost is to use the formula:

This formula takes into account both the average inventory level and the unit cost of the inventory. It then divides those two figures by 365 days in order to get a daily carrying cost figure.

The second way to calculate carrying cost is to use the formula:

This formula takes into account both the annual inventory holding costs and the number of days in the year minus the number of days that the inventory is held. This figure gives you a per-day carrying cost.

Which method you choose to use will depend on your specific business needs. Whichever method you choose, it is important to track your inventory levels and associated costs so that you can make sound business decisions about your inventory. Carrying costs can be a significant expense, so it is important to make sure that you are aware of them and take them into account when making decisions about your business.

Ways to reduce inventory carrying costs

Inventory carrying costs are an important consideration for any business, and it’s important to take steps to reduce these costs as much as possible. By following these tips, businesses can reduce the amount of money they spend on inventory carrying costs. Reducing these costs can help businesses to become more profitable and competitive.

Minimize Inventory On Hand

One way to reduce inventory carrying costs is to minimize the amount of inventory you have on hand. This can be done by redesigning your warehouse so that it is more efficient, implementing an automated Inventory management system, or outsourcing your Inventory management functions.

Redesign your warehouse

If you have a lot of excess space in your warehouse, you are wasting money on unnecessary inventory carrying costs. Redesigning your warehouse can help to make it more efficient and reduce the amount of space you need for storage.

Speed Up Inventory Turnover Times

In order to reduce inventory carrying costs, you need to make sure that your Inventory is turning over as quickly as possible. This can be done by increasing sales, renegotiating with suppliers/customers, or streamlining your ordering process.

Renegotiate with Suppliers/Customers

If you can get your suppliers to reduce their prices or your customers to increase their order sizes, you can reduce your inventory carrying costs. Often, a small price concession on the part of the supplier or customer can result in significant savings for the business.

Use Just-In-Time Inventory Management

Just-In-Time Inventory management is an Inventory management system that eliminates the need for Inventory stockpiles. This system relies on suppliers delivering goods to the business just in time for them to be used. While this system can be more complex to implement, it can save businesses a lot of money in Inventory carrying costs.

Implement an automated inventory management system

Implementing an automated Inventory management system can help speed up Inventory turnover times and reduce the amount of time and money you spend on Inventory management. Automated systems can also help to prevent human error, which can lead to costly mistakes.

Odoo is one of the most popular inventory management systems available, and it is a perfect option for any business because of its comprehensive solution, fair pricing, and ease of installation. Inventory management software, such as Odoo ERP, allows users to handle and monitor a wide range of orders, including delivery orders, dropshipping orders, receptions, and requests for inventory goods. Furthermore, the unique modules support a variety of shipping companies, including UPS, DHL, FedEx, and even local post offices. Because of this feature, the process of controlling shipping operations is made much simpler and easier.

You won’t have to integrate any software to run all of the sectors in your company since Odoo will take care of everything for you.

Final thoughts on inventory carrying costs

The benefits of reducing inventory carrying costs are significant. By reducing these costs, you can improve your profits margins and free up cash flow. This can help you grow your business and make investments in new products and technologies. If you’re looking for a third-party development business to assist you with implementing Odoo in your corporation, please feel free to contact us. Being a silver partner of Odoo with lots of experience and successful projects, we can provide you with the best solution for your inventory management requirements. Our team of experts would be happy to share our knowledge and help you make the most informed decisions for your business.

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So What is reverse logistics? Contrary to what the name might suggest, reverse logistics isn’t about reversing the course of daily life. It’s actually all about getting products back to the manufacturer or distributor after they’ve been sold to consumers. Understanding how this process works and the different types of reverse logistics can help businesses streamline their operations and improve customer satisfaction. 

In this blog post, we’ll break down everything you need to know about reverse logistics so you can apply it in your own business practices. Stay tuned!

What Reverse Logistics is and How it Works

Reverse logistics is the process of moving goods from their final destination back to the supplier. It can be used for products that are defective, surplus, or returned by customers. Reverse logistics helps companies reduce costs, recover lost revenue, and improve customer service.

For instance, In the beverage industry, companies are using reverse logistics to keep their tap containers from being wasted. The process starts with producing beverages in bulk and then bottling or canning them for retail sale when they’re ready. This requires many steps, including planning transportation, managing shipping loads, and cleaning the containers.

There are 5 main steps in the reverse logistics process: 

• Process the Return: When a consumer wants to return an item, they should be able with a process that includes providing identification and signing for the package. The company will then authorize your refund or replace any faulty goods in order of what’s been ordered from them before being sent back out again.

• Deal with Returns: To ensure that your products are both returned and recycled efficiently, you should consider using a centralized processing center. The first step in returning an item is inspecting it for any damage or stains on the exterior of whichever container was used when shipping 

• Keep Returns Moving: Sending repairable products to the repair department might help you reduce your daily waste.

• Repair: After inspecting the returned item/equipment and assessing whether or not it can be fixed, it should be moved to the repair area.

• Recycle: Selling any sellable components should be attempted if feasible.

Successful Examples of Reverse Logistics

H&M 

It is a clothing company that has used the “Reverse Logistics” idea in an innovative manner. H&M accepts gently used clothing from any brand, not only the H&M brand. It is from these previously owned garments that they make their entirely recycled apparel line.

Essentially, the goal behind this is to engage consumers with the brand not just via selling to them, but also through involving them in the brand by donating their old garments.

Apple

When it comes to an effective reverse logistics system, Apple is a shining example. Consumers who return to an Apple shop to purchase the most recent model are offered discounts on the new product in exchange for the return of their previous model.

Apple then takes the old models and returns them to their respective manufacturing facilities. Using this approach, Apple is able to reuse components from earlier models in future products, allowing the company to be more environmentally responsible while also saving money on manufacturing expenses.

UPS

UPS also effectively used reverse logistics to reduce its environmental impact by enabling customers to repurpose shipping boxes for the shipment of their own merchandise. UPS also offers recycling services, in which they will pick up items that are no longer required and dispose of them in an environmentally friendly manner.

Dasani

As an amazing example of reverse logistics, Dasani has set up Dasani Bottle Bins on college campuses around the country for the simple collection and recycling of their old goods. Dasani is able to collect and recycle the bottles because consumers deposit their empty Dasani bottles in the bins provided by the company.

Benefits of Reverse Logistics

Now that you’ve grasped the answer to what is reverse logistics, let us walk you through the next important part: how reverse logistics is beneficial to the developers and users. There are several benefits to implementing a reverse logistics process. With the right planning and execution, reverse logistics can provide a host of benefits to businesses.

Improved Customer Service: Reverse logistics helps companies improve customer service by providing a way to handle returns and recalls quickly and efficiently. This can help keep customers happy and reduce the number of negative feedback companies receives.

Improved brand image: When a company has excellent management and response capacity, it can provide better customer service. Also, if the material or product returned becomes part of the recycling chain, users will perceive respect for the environment, which is increasingly valued in society today.

Reduced Environmental Impact: Reverse logistics helps companies reduce their environmental impact by recycling waste materials and disposing of hazardous waste properly. In addition, efficient reverse logistics operations can help save energy and resources.

Increased Efficiency: Reverse logistics can be less efficient than traditional logistics operations due to the need to handle returns and recalls. However, technology has made reverse logistics more efficient in recent years, and there are several tips companies can follow to further improve efficiency.

Challenges Companies Face when Implementing Reverse Logistics

After deeply understanding what is Reverse logistics and how it affects your business, it’s important for a business to find out some challenges companies may face when implementing it. There are several challenges companies face when implementing a reverse logistics process:

Increased complexity: Reverse logistics adds complexity to the supply chain due to the need to track and manage returned products. Because there are so many uncertainties in returns and reverse logistics, it’s difficult for manufacturers to keep track of orders and manage information flow across silos. Many processes and systems are readily integrated into a multi-enterprise supply chain network platform that provides end-to-end visibility and control in such an environment.

Higher shipping costs: Shipping costs are often higher for reverse logistics due to the need to ship products back to suppliers. As a consequence of rising return volumes, corporations are having difficulty determining the extent of product failures or damage, and they are incurring additional expenses for repackaging and redistribution.

Longer lead times: Due to the necessity to examine and prepare items for transportation, reverse logistics lead times are sometimes higher than forwarding logistics. The processes for inspecting, repairing, and redelivering are completed in a timely manner. The number of product returns has climbed significantly in recent years all around the globe. It is estimated that one out of every three products bought online is done so just for the purpose of testing and comparing it before returning it.

The ecological issue: Reverse logistics has a close association with environmental protection since it is responsible for handling the goods, components, and materials that have been used or disposed of and for which the producer is liable in some manner. The accountable kind. Its major goal is to breathe new life into these items while also reducing the amount of trash that is generated in the process.

Tips for Overcoming these Challenges

There are several tips companies can follow to overcome these challenges:

Make sure the reverse logistics process is integrated with the rest of the supply chain: This will help ensure that all aspects of reverse logistics are coordinated and run smoothly.

Use a centralized warehouse: A centralized warehouse can help reduce shipping costs and lead times by handling all returns and recalls in one location.

Train employees thoroughly: Employees who are responsible for handling returns and recalls must be trained on how to do so effectively and efficiently.

Use technology to improve efficiency: Technology can help automate the reverse logistics process and improve overall efficiency. And Odoo will be the best solution for supply chain management operations. It is also free to use. The supply chain management parts of your organization will be efficiently configured in Odoo after you have completed this course. In addition, the Odoo platform will guarantee that product transfers are carried out correctly, resulting in the efficient administration of the items on the market. Additionally, be certain that you will have appropriate cash flow management for your activities.

The Future of Reverse Logistics

Reverse logistics is an important part of the supply chain and is expected to grow in importance in the future. Companies that are able to effectively manage returns and recalls will be well-positioned to succeed in the ever-changing retail landscape.

The future of reverse logistics is uncertain, but there are several trends that could have an impact on the industry. These include the growth of eCommerce, the rise of omnichannel retailing, and the increasing demand for sustainability.

eCommerce is growing at a rapid pace and is expected to continue to grow in the future. This will lead to more products being returned by customers, which will create a greater need for effective reverse logistics operations.

Omni-channel retailing is also growing in popularity and is expected to become even more common in the future. This will result in more products being shipped to and from stores, which will also create a greater need for effective reverse logistics operations.

The demand for sustainability is also increasing. This means that companies will need to find ways to reduce their environmental impact, which could include recycling waste materials and properly disposing of hazardous waste.

In conclusion

Hopefully, you have gained some useful knowledge about what is Reverse Logistics after reading this post. By understanding how reverse logistics works, you can make sure your company is taking full advantage of this necessary system. If you’re interested in learning more about reverse logistics or need help with other inventory issues, contact us today. We’d be happy to chat with you and see how we can help get your products moving in the right direction.

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What is warehousing?

Warehousing is the process of storing physical products in a designated warehouse or storage facility until they are sold or disseminated. Warehouses store products in a safe and secure manner, keeping track of where they are, when they arrived, how long they’ve been there, and the quantity on hand. 

Small firms: Inventory warehousing can be done from home for small or fledgling firms until they outgrow the area. At that point, a company must rent storage space, lease a warehouse, or outsource the logistics process to third parties, who will then keep merchandise in their warehouses.

Ecommerce firms: Products are stored in facilities until an order is placed online, at which they are delivered directly to the customer. Inventory may be temporarily held in a warehouse before being sent to a brick and mortar store in traditional retail.

Why is choosing warehousing types important?

For more efficient functioning of the warehouse, it is necessary to determine the most optimal warehousing types for goods. The type of warehousing involves the choice of technological equipment for storing cargo and the form of placing it in the space of the warehouse. 

The choice is influenced by: warehouse area, warehouse height, used commodity carrier, volumes of delivery consignments, peculiarities of cargo commissioning, free access to goods, conditions of storage of goods, breadth of the assortment of goods, ease of maintenance and capital costs. The placement of technological equipment should ensure maximum use of the area and height of the warehouse. By choosing the right warehousing types, these advantages of various types of warehousing are considered: 

• A high degree of utilized area and volume.
• Free access to the goods.
• Ensuring control over structural changes in reserves.
• Ease of maintenance.
• Automated control.
• Minimal operating and maintenance costs.

Different types of warehousing

Here are the five most common warehousing types, along with their advantages and disadvantages. 

Public Warehouses 

Many small businesses can’t afford to own or lease their own types of warehouse storage systems. Companies can rent short- or long-term storage space from public warehouses on a month-to-month basis. Governmental agencies own public warehouses, which they make available to commercial businesses. Both commercial and personal usage of public warehouses is permitted. Businesses could be charged per pallet or every square foot of space used.

One major advantage of using public warehousing types is that they are easily found online. A company may find a public warehouse that meets their storage needs, purchase space and start using it right away. But public warehouses are also one of the more expensive warehouse storage options available. Costs include $5,000 to $25,000 for a private dock, $300 to $400 for an office and $20,000 to $45,000 for a warehouse pad. On average, companies using public warehouses pay $1.50 to $1.75 per square foot per month for storage. 

Private Warehouses 

Private warehouses are more costly than public warehouses, but the storage costs are far more reasonable. These warehousing types are owned and operated by a single company and are larger than public warehouses. Like public warehouses, private docks are often located in urban areas. But they generally feature additional office space and a greater demand for workforce. They also provide additional security for companies because of their larger size. For example, they usually have a 24-hour employee security presence to prevent theft and vandalism. 

Costs for private docks are anywhere from $2,000 to $15,000 per dock. It depends on the size, location, and floor plans of the structure, plus additional upgrades. Those costs are one reason private docks are usually only available to large and very large companies. Smaller companies may lack the storage and workforce demands, or they can’t afford the expense. Bonded Warehouses A bonded warehouse is a type of warehouse that can store imported goods before customs duties are required to be paid on them. Goods may be stored here for many months, even years, without incurring customs duties. 

Bonded warehouses

Bonded warehouses are warehousing types where imported items can be kept while customs charges are paid.  When corporations rent space from them, the authorities provide them with bonds to ensure that they will not lose money when their items are distributed. 

Goods purchased from one company would be used, and goods sold from another. Before bonded warehouses were legal, the two major retailers created their own bonded warehouses for buying and selling imported goods. The high price paid by the bonded warehouses meant that when the importing company finally sold goods, it had no money in its account, and therefore no money for buying goods for its next importing cycle. 

Co-operative Warehouses

These kinds of warehouses are owned, managed and controlled by cooperative societies. They are very special entities, whose objective is to distribute goods and services on the basis of community consent. Co-operative warehouses often set aside space for educational purposes as well. Non-profit Co-operative Societies: These warehouses, for which all or a portion of the members’ capital is used to provide warehouses as well as the management services, are almost exclusively owned by such societies. These warehouses are being designed and managed to be competitive, and can sometimes surpass the WTS in terms of quality and location. 

Distribution Centers 

A distribution center is a storage facility that is usually designed to meet specific needs. The storage is used for temporary needs and items are shifted quickly within the supply chain.

The main function of a distribution center is to serve as a staging point for inventory so that stock can be shipped to its final destination with minimal loss of the product and costs. In the shipping and receiving industries, a “punch list” is an organized listing of tasks required to be performed by distribution center staff before products are shipped or received. In practice, a punch list includes all documents and forms that must be completed before products can be shipped. In most cases, a distribution center’s primary responsibility is to serve the immediate needs of the company for which it works.

Types of cold storage warehouse

There are different types of cold storage warehouses out there, from individual units to entire dedicated facilities. Types of cold storage warehouse include: 

• Refrigerated containers.
• Blast freezers and chillers Cold rooms.
• Pharmaceutical grade cold storage warehouse.
• Plant attached cold storage warehouse. 
• Dedicated custom cold storage warehouse facilities. 
• Freestanding cold storage warehouse. 

It is very important for you to choose a cold storage warehouse for your inventory. It is imperative to understand that a good cold storage warehouse is good for your inventory and can create profitability for your company. 

Warehouse software

Warehousing is an automated system that is used to manage and optimize the day-to-day activities and operations in the distribution. Warehousing software covers inventory gathering and storage, human and automatic selection, and tracking things to be dispatched.

When the inventory and workload are greater than what can be handled manually, using spreadsheets in warehousing software solutions are largely tactical tools acquired and employed by enterprises to meet the unique customer demand requirements of their supply chain and distribution channel. Warehousing software helps warehouse and distribution center managers plan, organize, staff, direct, and control the use of available personnel to move and store materials into, within, and out of a warehouse. It also aids employees in the movement and storage of materials in and around a warehouse.

This software is used to keep track of warehouse activities in different warehousing types, from the time products are delivered to the time they leave. Inventory management, picking methods, and auditing are all part of these operations. The solution aids in the reduction of paperwork in your processes as well as the reduction of human errors caused by manual picking and storage processes. As a result, you can save time, increase staff productivity and efficiency, while lowering operating costs.

There are dozens of warehouse programs for accounting and distribution. They can be divided by stability, functionality, cost, and intuitiveness of actions. Technical support plays an important role, as without a response from the technicians, it is impossible to carry out an operation or identify excess.

Conclusion

Different warehousing types offer different functions and needs from firms. It is now advised managers understand the benefits of warehousing and urgently choose the right type of warehousing. Besides, by using warehousing software, firms can optimize and control the whole process of distributing products.

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What is a Retail Management System?

In its simplest form, a retail management system (RMS) is a platform that combines several technological tools to support the operation of a retail store or chain.

Retail management systems can help retailers provide multiple services to customers in one place, thereby streamlining the process of running a store. For example, a retail management system can offer a combination of some solutions such as customer checkout, shift scheduling, or finance tracking to improve business performance… What’s more, some platforms are compatible with mobile devices, which assists employees in completing task on the go. 

Below are some typical components of a retail management system. The elements and functions vary depending on the platform you adopt. 

• Inventory management.
• Workforce management.
• Point of Sale (POS).
• Accounting.
• Customer relationship management (CRM).
• Analytics.
• Marketing or eCommerce tools.

What To Look For In Retail Management Systems

Choosing the right retail management system is an absolute necessity. Pick the wrong one and you will be playing with fire. Let’s have a look at some features to keep in mind when considering the best retail management systems for your retail outlets:

Point of Sale Features

​​POS is known as the transaction center of your business. All of the essential data (sales transactions, customer information, and updated inventory counts) is converted into the entire system through your POS terminal. Your RMS then uses analytics to transform this raw data into valuable reports, power your inventory management capabilities, and more.

Customer Relationship Management (CRM)

These are capabilities related to how you communicate with and advertise to your target audience. Loyalty programs, email newsletters, transaction history monitoring, and even the storage of proper contact information are all part of this. Knowing how your consumers engage with your business can help you establish long-term partnerships.

It is important to underline that a major feature of RMS is that all of the distinct capacities communicate with one another, informing one another. The inventory count is updated and new data is sent to your analytics when you make an online transaction. To better achieve your goal of running a successful and productive firm, make sure your tools are all connected.

Inventory Management

Retailers should make a commitment to ensure that no client is left behind or unsatisfied. That is easier said than done, as manual inventory management is time-consuming and frequently results in merchants being short on popular products.

In 2024, sophisticated inventory management for your retail management system has become more and more crucial for your business’s survival. Inventory management tools give front-line personnel a clear and accurate image of inventory, allowing them to make recommendations that improve client experiences while also increasing revenues through upselling and cross-selling.

Analytics and Reporting

One of the most compelling reasons to utilize RMS in your company is its analytical and reporting capabilities. Through reporting, you can stay updated on all aspects of your business such as inventory, staff hours, and sales performance. If you don’t have an RMS, you’ll have to manually update spreadsheets and use elaborate pivot tables to get this type of information.

Look for analytics that tracks sales in real-time and can show you what is selling, when it is selling, who is buying it, and who is working when it is sold. Such information can definitely help you in purchasing, staffing your store, running promotions, and establishing your business hours.

Ability To Store Credit Cards For Repeat Customers

Look for functionality that allows you to save the credit card information of your most loyal clients to make payments more seamless. With these functionalities, Customers will no longer have to read out their credit card numbers over the phone. Alternatively, if the purchase is happening in your store, you might find functionality that automatically sends receipts via email when the credit card is used. Of course, your customers have to agree with this type of functionality.

Transform Your Retail Business With Odoo Solution

A Brief Overview about Odoo 

Released in 2005, ODOO has become the favorite choice of retail management system for many companies as it handles a wide range of business needs. In other words, we can say that it is a comprehensive suite of open-source business apps for the retailing industry.

Let’s take a look at some of Odoo’s exceptional retail management system features that contribute to its robust function: 

• Open-source and free enterprise resource planning systems.
• Integrated scalability.
• Easy to customize.
• Intuitive user interface.
• Functional coverage expands to many different areas: CRM, Sales Management, Warehouse Management, Manufacturing, Project Management, Purchasing Management, POS.

Regarding the price, besides a 15-day free trial, Odoo set a reasonable subscription pricing plan for each entity in the corporate world.

• Individual: $7.5/new user/month, $10/user/month (only for cloud-based version), $72/user/year.
• Enterprise version (cloud-based and on-premise): $28/user/month, plus the costs of the applications.
• Basic Success Pack: $977.50/25 hours (expire after one year).

>> Read more: TOP 15 Project management software to grow your business

Odoo Retail Management System – The ideal match software for the retailing industry

After having general knowledge about the platform, let’s get down to business with some key features that make Odoo a perfect fit for retail businesses.

Point Of Sale

Odoo POS offers a smart and flexible interface so that any retail company can use it without hassle. Other than that, this intuitive interface also allows you to configure different modes to meet your precise needs. 

The feature stays reliable even when there are problems with your Internet connection. All you need to do is activate the system under a network, then you can enjoy the convenience of Odoo POS at any time and anywhere. Email marketing is another useful function integrated with Odoo retail management system POS. Specifically, with this module, users can keep track of customers’ habits and easily send them special offers and sale notices.

Regarding inventory management, the Odoo Inventory app automatically inputs transactions from the POS and provides accurate forecasts of stock levels. As a result, retail owners can have a consolidated and real-time view of all their operations and inventory. Besides, the POS solution is compatible with Odoo eCommerce, which helps to avoid overlapping features and turns your business into a truly multi-channel one.

Sales

In terms of sales, Odoo proves to be an effective retail management platform to help buyers manage and classify their sales orders into a well-structured and hierarchical system. That means they can create new orders and review existing ones in their various states. 

Unlike other retail management systems, Odoo allows customers to sign the online quotation anywhere with their e-signature. Once the confirmation of an order is done, the delivery of goods and invoicing is automatically triggered.

At the same time, the Odoo sales module serves the function of a showroom of your products and services. It displays detailed descriptions, images, prices, promotional programs, and quotations. Plus, owners can rest assured that contracts and invoicing phases are recorded thoroughly, which frees employees from the complicated clerical work.

Subscription and Rental Solution

Obviously, maintaining a customer’s active subscription through a positive shopping experience is crucial for any retail company to drive sales. And Odoo’s retail management system is an excellent choice to help business owners achieve the goal. 

In detail, there is no login requirement, and the signup procedure is also alleviated with some simple steps. Once customers are delivered to the main screen of Odoo, they will be welcomed by a user-friendly portal containing all their data and contract options. In terms of payment, Odoo retail management system software is a time-efficient solution thanks to its auto-invoice settings. Thus, recurring billings are handled quickly, leading to a better customer experience while shopping at your e-store.

With regard to rental solutions, Odoo is an ideal match to streamline your rental process. In particular, business owners can enjoy a hassle-free method of managing their rental orders. For example, they can create the delivery, return or schedule from one single view, keep an eye on the stock as well as send professional quotations to customers. Last but not least, Odoo offers an all-in-one solution package – with other Odoo apps joining hands to manage the complete lifecycle of rental products. 

CRM

CRM is among the innovative retail management solutions offered by Odoo. With this module, business owners can efficiently track leads, close opportunities, and grasp a broad overview of sales activities in an intuitive dashboard. 

Also, the platform automates key tasks such as communication, prioritization, identification, notification, assignment, and case resolution to enhance collaboration in the workplace. Finally, it provides useful tips and best practices to enable business users to strategically configure and deploy their CRM.

Odoo – Magenest One Stop Solution 

A recent increase in technological advancements has made the shopping experience easier for clients and has established new online marketplaces for customers to purchase items. For brick-and-mortar retailers, the new challenge is keeping their businesses current, competitive, attractive, and fast-growing while using modern technologies. However, Choosing the best retail management system on your own might be a daunting task. This is where Magenest helps retail businesses in making smart purchasing decisions.

As one of Odoo’s most trustworthy partners, our experienced developers and extensive expertise in retail management will provide you with the best Odoo solution to help retail businesses save money and increase profits. We include Open Source Solutions such as Odoo, Magento, and other eCommerce development. Magenest commits to deliver excellent and high-quality service for Information Technology & Software Solutions to clients worldwide. Thousands of businesses rely on Magenest’ researched insights and updated lists of software products and services to make informed business decisions. Check the list of the best retail management case compiled by Magenest team to have the best solution for your business

Conclusion

The world keeps moving, and so does Odoo. When technology never stops developing, you need a strategic partner who will go with you, no matter how long and challenging the way will be. Odoo will always explore and create new features to fit every foundation and field. All you need to do is “mind your own business”. We hope with this informative article, you can have a decent choice of technological software to lift up your business. 

The post What is the best Retail Management System in 2024 appeared first on Magenest - One-Stop Digital Transformation Solution.

As we are in the business of creating the best software extensions for our customers, we would like to provide you with more insights on whether Xero or Odoo works best for your online store. If you are still unclear on what to choose, please read through this article. Do feel free to contact us any time through our e-mail below if you still have questions!

Xero vs Odoo: A Brief Overview

In general, if we look at numbers, we can clearly see the number of subscribers of Odoo nearly triples that one of Xero (Over 2 million vs just 700,000). Not only that, Odoo’s total number of apps makes Xero’s number of add-ons modestly disappointing (7,300 apps vs 400+ add-ons). But Xero has an edge in terms of partners. Xero’s 16,000 partners are still a testament to its popularity. In contrast, Odoo, being an open-source software utilized in over 120 countries, has just merely 730 partners.

As mentioned previously, Odoo is open-source software. In contrast, the developers of Xero decided that it should only be available through SaaS (software as a service) offer. In scope, we can also observe that Odoo offers more than just accounting like Xero. Odoo’s large user base is also the result of its array of applications, in addition to its open-source nature. You can view Odoo as something like an Apple iMac: All-in-one, covers everything from website/e-Commerce, billing, accounting, manufacturing, warehouse to and project management, and inventory. Meanwhile, Xero resembles an IBM supercomputer intended to run a specific purpose, in this case, strictly accounting.

When you visit our online store and look for an accounting solution for your marketplace, these details may be the first for you to bear in mind before purchasing our Xero or Odoo extensions.

Xero vs Odoo: In Specific Details

Now that we have an overall understanding of what these two platforms are, let’s take a closer look at features: how they work and what they cover. Remember that do not take any single comparison factor as a means to make your choice. Every factor can be interdependent, so it’s best if you understand thoroughly well what your business needs the most before deciding.

Xero vs Odoo: Pricing

If it’s just about accounting, Odoo can be a better-starting choice for startups because its accounting app is free, albeit with no support. Xero on the other hand offers users a Standard $30/month package that includes everything: free trial, free updates, maintenance, and full support. This cost can vary, however, as you may find yourself in need of another currency, in which case the price might go up. In addition, Xero only offers 6-month contracts, while Odoo does not provide any information about contract duration. Xero also provides users with the option of a free 30-day trial and offers a starter pack at just $9/month.

Nevertheless, Xero’s monthly $30 price can actually be more viable in the long run, since follow-up support is always necessary. Odoo’s support options are pretty much limited, as you need to purchase other apps alongside the accounting one to receive further support. Furthermore, each app in Odoo has its own individual pricing. Bear in mind, though, that Odoo also charges $25 per user (Enterprise package). While this seems appealing to some, they still need to pay for other apps to get general support for all. So in terms of pricing, it really boils down to whether you are aiming for short-term or long-term cost, just accounting alone or all-in-one. For short-term and all-in-one management, Odoo is better. For long-term accounting, Xero is better (Remember, we are only talking about price here).

Xero vs Odoo: Features

The Xero vs Odoo argument can have some sense of consensus here, at last. Before you can decide which software to integrate into your marketplace, dig into what features both these platforms share, what features that are missing from one but not the other, etc. Since both platforms have a lot of features in common, in this part we will give you information on the ones that Xero has but Odoo doesn’t, and vice versa:

Xero-unique features:

• Contact History.
• Customizable Reporting.
• Document Storage.
• Drag & Drop Interface, E-mail Integration.
• Goal Setting/Tracking.
• Mobile Integration.
• Receiving.

Odoo-unique features:

• Activity Tracking.
• Automatic Notifications.
• Custom Fields.
• Opportunity Management.
• Pipeline Management.
• Pipeline Reports.
• Sales Forecasting.
• Task Scheduling.

These are the features that distinguish Xero from Odoo. For other features, both platforms offer the same and possess the same. Each feature can affect the original Standard package pricing of both Xero and Odoo, however (as mentioned earlier). For instance, if Xero users need to utilize the multi-currency feature, the cost can go up to $70 a month. Meanwhile, the original $25/user price of Odoo can also fluctuate depending on how many apps and features users use.

Basically speaking, both Xero and Odoo offer amazing common features to all your accounting needs, but the above unique features are the catch to help you pick either of them (and the price, too!). Do not expect everything to be free but with good quality, however.

Xero vs Odoo: User Interface (UI) and supported platforms

Xero vs Odoo ties here. Both platforms have a robust, good-looking website with smooth animations, albeit different themes. Xero uses a predominantly light blue color scheme, while Odoo UI seems to be more colorful with the primary scheme being purple. All functionalities are easily accessible on the web, as well as on mobile apps.

Choosing which over which at this point largely depends on each person’s aesthetic taste, in addition to price and features. Example: Xero’s dashboard seems to be more traditionally laid out, while Odoo’s dashboard resembles sticky notes on your desktop screen. Or Odoo’s home screen on mobile devices looks like typical home screens of most operating systems, while Xero’s home screen has a straightforward layout that can be more familiar to some. Pick your favorite.

In terms of supported platforms, Xero supports more than Odoo does. Both are available on the web and on Android-based mobile devices, but Xero is also available on iOS-based devices as well. This makes Xero friendlier towards more hardcore Apple fans, yet, able to satisfy Android fans at the same time. So, Xero fairly wins in this aspect. We are still trying to grasp Odoo’s decision to not support iOS devices, but it seems they finally realized the importance of this platform and released an app on iTunes at last near the end of 2016.

Both Xero and Odoo are still not supporting Windows Phones, though. Maybe someday, who knows?

Xero vs Odoo: Other factors to consider

One interesting fact is that Xero integrates well with other applications such as PayPal, MailChimp, Zapier, Workato, and so on. The number of applications and platforms that can be integrated with Xero (including Magento and Magento 2) reaches 463. In stark contrast, there are only 5 Odoo’s integrations into other applications/platforms so far, Magento 2 included. We will get to the bottom of this soon, but obviously Xero wins again in this one.

Oddly enough, despite offering free accounting app for companies, Odoo’s user base are primarily large enterprises, each with 201-1000 employees. Xero’s most popular users are entry-level startups with dozens of employees, or SMEs. There is an explanation for this, however. Odoo’s nature as an open source, all-in-one management software makes it more convenient for larger firms to handle multitasking. Xero on the other hand seems to be the essential cost-effective accounting tool for startups, but cannot fulfill other purposes. In the perspective of a large company, having Odoo can be more beneficial because of its versatility. Why so? If they pick Xero for accounting purposes then they will need to purchase other apps to integrate into their online stores. Hence, Odoo wins here.

Conclusion

At Magenest, we always hope that our customers make the best decision when purchasing our extensions. Therefore, we hope that with this article, you will have a better understanding of these two amazing accounting platforms, and pick the right one from our store to integrate into your marketplace.

You can check out our extensions for both Xero and Odoo here.

If you still have any questions, contact us at support@magenest.com or send us a message at contact us. Cheers and happy shopping!

The post Xero vs Odoo: What Should You Pick? appeared first on Magenest - One-Stop Digital Transformation Solution.

Some people want to have deep dive into inventory management definition and the methods to improve it because of its vital role. Inventory is the bridge between production and consumption. Sellers also want to increase inventory levels to respond to customer needs quickly.

The staff in charge of production and operations are also suitable for a large amount of inventory because it makes it easier to set up production plans. At the lowest level, money that lies in inventory will not be spent on other items. Because of that, inventory management can be treatable, not necessarily warehouse. 

In this article, we explain clearly what inventory management is, how it works and suggest you some tips to manage inventory more effectively. 

1. What is Inventory Management?

It will be hard to precisely understand what inventory management is if you don’t have an exact understanding of inventory in the business. Inventories are manufactured goods that are preserved by an enterprise for final sale. In other words, inventories are stock items a company makes for sale and the ingredients that make up the products. Therefore, inventory is the link between co-production and selling products that are part of short-term assets, using a large proportion, playing an important role in the business production of the business.

Inventories that exist in a manufacturing company can be analyzed into three categories:

• Raw materials: that are sold or kept for future production, sent for processing and purchased on the way home.
• Semi-finished products: are products that are allowed to be used for production but are not yet finished and finished products are not kept in stock of finished products.
• Finished product: is a finished product after the manufacturing process.

To make sure that your inventory process works effectively, businesses should have optimal inventory management. 

So, what is inventory management?

It is a planning method for determining when to place an order and the number of orders so that the cost of ordering and the storage costs can be optimally effective without causing production loss. This stock management entails creating a lead on raw materials, components, and finished goods, as well as keeping and processing such items within your business.

Inventory management is a must for any enterprise because it impacts the costs directly. An ineffective inventory process will lead to higher warehouse expenses, wasting and losing products and slow delivery that makes customers unsatisfied. 

2. How does Inventory Management work?

Inventory management is a complicated process, especially in large organizations. In inventory management, products (in the form of materials or components) are brought to the receiving area in the warehouse and placed in particular stock areas. 

Unlike larger businesses with more physical space, small companies will send products to stock areas, skipping receiving areas. In the wholesale industry, businesses make materials and components into finished products and straightly sent them to stock locations where they are kept prior to distribution or final customers. In inventory management, data is very important. Managers track and monitor products moving on the process based on data like lot numbers, serial numbers, costs, quantity and dates.

Inventory management helps revenue estimates. You will supply details for purchasing supplies and recognize sales trends that guide what inventory in future shipments should be ordered. If 90 bicycles will be demanded independently within the next month, then anything needed for bicycles in the dependent demand group needs to be ordered as well. The production of all 90 bicycles needs to be ordered in time. 

This is, however, a simplistic balance. It is very seldom that only one item is made by a company. In the category of dependent demand, several more components would be made if the company had produced bikes, pumps, helmets, clothes, and shoes. In order to fulfill each sales item, these components also need to be ordered.

The items must be stored and arranged effectively in a warehouse once they have been purchased and shipped. The inventory control ensures that each item is tracked until it reaches the warehouse. It confirms revised inventory amounts and sends alerts when a stock falls. If a finished product is finished, inventory management shall store and monitor the product before it is sold. 

When sold in the inventory management system, the status of the item is updated. The device will save the data for future sales projections when the final product is sold. If there was maybe a strong demand in the summer for bicycles and helmets for the previous two years, then this pattern will be recognized by a sales forecast and identified by a company for potential inventory purchases.

3. The inventory management benefits you should know

Avoid loss of goods

Goods loss occurs due to many reasons, which can be employee fraud, loss in the warehouse, or loss due to slippage. With effective inventory management, businesses will avoid wasting and losing goods. Thus, this is a notable inventory management importance. 

Employee fraud is quite common in many stores. The fact that the employee gets used to many times not only causes other employees to suffer injustice, the store culture goes down but also causes damage to the shop owner. Therefore, transparent and scientific inventory management will minimize the habits of warehouse staff and sales staff.

In addition, there are losses due to price slippage, for many retail stores of technology goods such as electronics, home appliances, etc. goods are quickly out of fashion, replaced, and price slippage. Although usually supported with the best price by the supplier, the profit of the store is still affected by slippage.

Therefore, one of the inventory management benefits is that regular checking and comparison of the number of goods sold and the number of inventories will help the store to avoid significant losses, and to plan appropriate import of goods.

Cost savings

Goods/materials in stock for a long time that are damaged, worn out, expired, etc., must be destroyed because they cannot meet business needs. However, if the inventory is strictly, continuously, carefully planned, the store will avoid unnecessary waste.

The storage fee is usually not fixed, it depends on the quantity and size of the goods you store. The larger the inventory or the more products are too bulky, the store has to use many types of equipment and other costs such as electricity, water, labour, etc. Therefore, the cost of storage will increase.

Therefore, it is necessary to detect goods with large inventories early, goods that consume a lot of storage costs, to take measures to promptly release and circulate inventory, and save a lot of storage costs.

A large inventory is something no store owner wants. If capital is not profitable, it is “dead” capital. The large inventory causes a large amount of capital to be misused, wasted, or even thrown away.

For supermarkets/electronics stores/clothing stores, which import a lot of products that are difficult to sell, are not popular with customers, and are easily outdated, the possibility of selling losses or leaving is very large.

For a restaurant/cafe, managing a raw material warehouse is a crucial task. Good warehouse management makes it easy for restaurants to determine the cost of importing each day, determine the number of fresh ingredients used in the short term and the dry/frozen ingredients to store, the shelf life of the ingredients in the warehouse, which ingredients are about to expire, etc.

For restaurants, by estimating the number of dishes to be sold in a day/week/month, how many ingredients will be needed for each dish, how much of each ingredient is, the restaurant will have a clear plan for a purchase.

Increase sales for the store

The problem of raw materials and goods of the store is redundant, wasteful, but lacks revenue, affecting sales productivity, losing customers, and making the store unprofessional.

Effective inventory management will help you quickly know which items are selling well. It also helps you to import goods in time, or to offer promotions with low stock, large inventory in stock. Thus, the store will optimize revenue and profit.

Increase working capital efficiency

Working capital is the cash flow to maintain the business and reinvest the stores in the short term. Working capital comes from the own capital and sales of the store, spent for the purpose of importing goods, importing raw materials for 1 month or 1 quarter. Lack of working capital, the store will be immobilized because there is no money to continue its business.

Stocks – Including the products and materials in the warehouse is a factor in working capital. If the goods in stock are well circulated, it will reduce working capital for 1 month, 1 quarter and shorten the capital turnaround time.

This means a lot for many stores with a low budget.

• Reporting inventory of goods by week, day, and hour will help managers easily orient the timely import of goods, thereby adjusting working capital flows.
• The ability to quantify raw materials and quote the cost of each dish/drink for the restaurant/coffee shop model helps the store proactively raise the right amount of capital. The store only needs to multiply the cost of 1 dish/drink by the quantity that will be sold during the day/week/month.
• Warehouse management operations will indicate the type of goods that are in large stock so that the store owner can devise strategies to stimulate demand by reducing prices and promotions.

Instead of having to budget for 1 month or 1 quarter, store owners can better anticipate by fully exploiting the cash inflow.

>> Read more: Expert’s guide on 21 must-know inventory management techniques

Accurate reports

If you utilize cost of sale accounting, precise product reports result in accurate inventory cost figures, which are critical to the precision of numerous financial reports. The inventory links to the product’s asset value directly. 

As a result, accurate cost values are important to your balance sheet, as well as your cost of sales and income statement. You will have accurate reports, analyze results precisely and give appropriate solutions and decisions.

4. All steps in the inventory management process

Plan and prepare

The first step in the inventory management process is planning and preparation. The management of inventory not only requires ensuring the complete and accurate quantity but also requires the administrator to ensure that the goods are imported and exported on time and according to the requirements of the goods. Therefore, planning for the import and export of goods is of great significance to businesses. Management needs to rely on the situation of the warehouse, the situation of production, and business to prepare the plan, personnel, and equipment accordingly.

Inventory of the warehouse

In this step, managers will check the inventory situation, the status of goods and raw materials to have a basis for planning accordingly. Inventory of goods also helps businesses understand the current status of products and materials to make decisions on consumption or timely supplementation.

Warehouse staff conduct a real inventory of inventory periodically and compare it with the accounting books to promptly adjust the matching data. Inventory data must be reported back to managers to manage inventory. Inventory should be done by two or more people and then collated to ensure accuracy. Today, the application of statistical management in the inventory control process will shorten inventory time and be more efficient.

Manage export and import

Inventory management includes the following tasks: purchase management, raw materials, production management, returned goods, warehouse transfer, etc.

In the past, import and export management was often done through books and papers. However, today, businesses can apply management software in inventory control processes or use barcode scanners to speed up the export and import management process.

Inventory management

Enterprises can apply manual methods or management software to check between the actual quantity of goods and the quantity on the accounting books. Inventory will help administrators to know which products are about to end, which are about to expire, which products are selling well that need to be supplemented, etc.

Determine 

After checking the books, determining the number of goods actually in stock, the total amount of imports and exports at the end of the period, the accountant shall carry forward the balance at the end of this period to the beginning of the next period. At the same time, the accountant is in charge of archiving documents, importing, exporting, preparing, and printing inventory reports, reports in the period to submit to managers.

5. 7 common inventory management methods

Just-in-time (JIT) 

JIT inventory management is a strategy for aligning material orders from suppliers with manufacturing schedules. Businesses hold as little stock as they can in order to avoid the expenses and hazards associated with maintaining a significant volume of stock. 

ABC inventory analysis

This approach tries to find the inventory that is profitable for you by categorizing products into different tiers.

• Category A contains your most valued items, which contribute the most to your overall earnings.
• Category B includes products that lie midway between the highest and least valuable.
• Category C stores products that are important for overall profit but don’t mean significantly to the firm as a whole.

Bulk shipments

This method is based on the idea that buying in bulk is less expensive. The technique is ideal if a company is confident that its items will sell, but it might provide difficulties if demand unexpectedly shifts.

FIFO and LIFO

LIFO and FIFO are methods for calculating inventory costs. FIFO (First in, First Out) presupposes that older inventory is sold first. FIFO is an excellent method for keeping inventory current.

Last-in, first-out (LIFO) posits that fresher inventory is generally sold first. LIFO helps to keep inventories from spoiling.

Consignment

This method enables a consignor to deliver goods to a consignee, typically a retailer, without the consignee paying for the items in advance. The consignor retains ownership of the items, and the consignee pays for them only when they are sold.

Cross-docking 

This method practically eliminates the requirement for inventory storage. Products are brought to a warehouse, where they are promptly processed and readied for transportation. They are often reloaded into other vehicles at the same facility and sent for rapid delivery.

Cycle counting

This method entails counting a limited amount of goods on a given day rather than doing a full stocktake. This approach allows your company to check proper stock levels in your inventory system on a routine basis.

>> Read more: 11 Inventory management Challenges, Problems and Solutions for it

6. How to improve Inventory Management?

Make sure everything is in its correct place

This is the key to helping shop owners effectively manage their inventory. Disorganization in the way the goods are sorted can interfere with the refilling process and make it more difficult for your employees to control and pick up the goods.

If everything is in place, you will easily find out which goods have disappeared, helping to reduce damage and theft.

In addition, placing the goods in the right position helps you easily control which goods are out of stock, need to import more, or which are too much in stock and need to be liquidated.

Always do a good job of preventing damage

This means you need to be in control at all times to prevent any possible loss, affecting your business as well as causing damage or loss to your store.

The import and export of goods must be monitored in detail by a professional department. This is seen as the only way to prevent loss and support effective inventory management.

Invest in inventory management methods training

Investing in effective inventory management training should start as soon as possible, the training should be detailed to help your employees get the most accurate capture.

It should be noted that training procedures need to be closely linked with implementation for the best effect.

Tight connection between departments

The unified workflow between departments always makes your business much easier and more efficient.

Goods supply and demand need to be planned and studied before being imported in large quantities.

Customer behavior will always determine the destiny of a product, so tracking trends is a must in order to grow a business.

Optimize your import process

For small retail stores, optimizing your inventory is the key to efficient inventory management.

Therefore, if you can eliminate errors in this step, it will help you greatly reduce problems arising in the next process.

In addition, monthly and quarterly inventory statistics will help a lot for running your business, especially if you don’t have too many Stock Keeping Unit (SKU) codes. 

Final words

With our explanation, you properly understand more about inventory management definition and how it works. It can be simplified by many systems and procedures and best handled by dedicated inventory management software. Different management systems perform best for different businesses, depending on the size of a company and the extent of its inventory. In any case, it is critical that your biggest asset inventory is managed by the most efficient method.

In addition to applying some tips and methods, businesses should use effective inventory software to assist them in managing their products in the warehouse. Among various inventory management systems, Odoo is one of the greatest choices for any enterprise due to its holistic solution, reasonable price and simple installation. You don’t have to integrate any software to operate all sectors in your business because Odoo can do it for you.

If you want to find a third-party development company to help you apply Odoo to your organization, you can connect with Magenest. Being a silver partner of Odoo and accomplished various projects, Magenest will give you the best solution for your inventory management.

Don’t hesitate and talk to us now!

The post What is Inventory Management? Insights and Techniques for 2024 appeared first on Magenest - One-Stop Digital Transformation Solution.

What is ERP software?

Enterprise resource planning (ERP) software is software that integrates and organizes data for the front and back office operations. ERP solutions combine a company’s key operations, such as manufacturing, distribution, finance, and human resources, into a single software system. The platforms centralize data in order to reduce manual entry, make business data visible across teams, and can even integrate partner data to ensure high transparency and fluid operations. Top best ERP software can guarantee all the above activities are controlled.

Manufacturing adjusts to changes in the sales pipeline in order to prepare for future workloads. HR then increases hiring to ensure that the plant is fully staffed. Using the most recent data, logistics determine the quickest routes. Warehouses understand their current inventory and can fill orders faster with existing products, reducing the load on the manufacturing team. Finally, the financial team uses up-to-date data to improve forecasting. 

Major features and modules of top best ERP software

ERP software varies greatly depending on system, industry focus, and features offered; however, most systems will include several of these modules:

• Integration: ERP software provides a fully integrated, user-friendly platform for analyzing, monitoring, and carrying out most data-driven tasks. ERP systems collect, store, and analyze data from all departments using a single database. 
• Automation: Top best ERP software automates time-consuming operations such as order entry, payroll, accounting, invoicing, reporting, and more. Automation reduces the number of hours your personnel would traditionally spend on these activities. 
• Human resources: HR software modules integrate your personnel information and records to all of your ERP’s systems. Payroll, time tracking, individual department scheduling and timesheets, succession planning, and hiring information are all live in one place.
• CRM modules: CRM modules streamline sales-critical information with production and product teams, provide complete customer contact information, and make account notes available to all stakeholders in the buy and production process. 
• Finance and accounting: This module collects financial information from other connected modules, providing a complete view of a company’s revenue and spending, rolling up profit and loss reports from financial reports, and creating projections. 
• eCommerce: Integrate your company’s ecommerce website with shipping, product development, and supply chain modules within an ERP; ecommerce integration will assist your team in drawing links between website health and business performance.
• Supply chain management: Supply chain can back up the entire revenue stream. ERP software guarantees that other teams have visibility into the supply chain and can respond promptly based on the severity of the crisis.

>> Read more: Digital transformation in supply chain: Definition, Examples and Tips

Benefits of these top best ERP software in firms

An ERP solution, when effectively deployed, improves organizational efficiency, performance, and profitability. Furthermore, ERP can assist businesses in reaping the benefits of digital transformation.

Reduced software overhead 

ERP software enables teams to combine their tools into a single unified system. Instead of paying for individual subscriptions for supply chain management, core HR, CRM, shipping, and inventory software, teams pay for a consolidated platform that performs all of these functions. Depending on the size and complexity of the organization, lowering the number of software system subscriptions can drastically reduce monthly costs.

Improved communication 

When all departments in the organization use a single program to plan and track business events, all business data is available for team evaluation. Many current ERP systems make significant investments in analysis tools and visualizations, allowing team members to build reports that illustrate progress, indicate inventory levels, and tell colleagues of victories. ERP software then acts as a single source of truth for stakeholders to compare successes and plan for roadblocks.

Silo removal 

Business silos, in which teams work independently of one another to the detriment of everyone, significantly reduce company productivity. An ERP enables businesses to publicize their goals and teams to collaborate on their plans. Teams with access to the same data can compare notes across departments, assisting everyone in moving toward the big business goals.

Manufacturing process standardization 

Sharing manufacturing plans and best practices can be critical for product and process uniformity in major manufacturing organizations with several sites. Manufacturing teams can use ERP systems to keep manuals, designs, regulatory documents, and crucial statistics for each process in a single, searchable area. This enables various departments within the organization to replicate processes across the county and country lines without sacrificing quality or speed.

Inventory lowering 

Keeping more resources on hand than you need costs money, whether it’s the number of widgets your company manufactures or the people who install them. ERP solutions provide inventory tracking and analysis, allowing businesses to function more efficiently. ERP systems can track assets from supply to sale by utilizing technology such as RFID tags, geofencing, and biometric data. Furthermore, many ERP systems will recommend inventory improvements over time. Companies that have fewer inventories can reuse storage space and save money on payroll.

Standardization of human resource data 

Many ERP packages include Core HR items like payroll, scheduling, time clock, and benefits administration. These modules link the front of the house, the warehouse, and the C-suite. An ERP system with core HR functions can use time clock software to calculate payroll and benefits, and managers can access employee information when creating schedules. Employees are a company’s most expensive and important resource, so connecting the software that controls them with the rest of the enterprise’s data is critical.

Top best ERP software on the market – updated 2024

Let’s find out below the top 7 best ERP software on the market and then consider the most suitable platform for your company:

Odoo ERP Software

Odoo is one of the most used open-source and top best ERP software, which is customizable, fully integrated, and packed with a wide range of expertly designed functions. This software builds a dynamic community with more than 10000 available applications that are flexible and meet a majority of the needs of the business, such as Sales, Manufacturing, CRM, Project, Accounting, and Inventory. 

Odoo is easy to install and test on many OS platforms. The cost of ownership is fairly low, which helps all business processes to reduce costs. 

Odoo brings all business features together, which allows the team to work together and collaborate with other departments most effectively. Besides, with Odoo, businesses can create new users easily when expanding business scale. By integrating all the apps into one system for quick data analysis, managing through Odoo will help reduce business decision-making time. 

Unlike other platforms, Odoo always updates the latest technology trends, which helps Odoo keep up with the most modern features and helps businesses always have the fastest access to the world’s advanced technology solutions.

SAP ERP software

The word “SAP” stands for System Application Programming, this is the name of a unit established in 1972 by five members of the IBM company. Nowadays, SAP has grown to become a leading ERP software company with more than 232,000 customers, and 30,000 companies, having branches in 188 different countries globally. SAP’s position is now as valuable as the big guys in the software industry such as Oracle, IBM, Microsoft, etc.

SAP software is a comprehensive solution that brings a wide range of enterprise resource planning (ERP) applications including customer relationship management (CRM), financial and accounting management, human resource management, and product line management, and supply chain management, all rolled into one.

SAP ERP is a one-size-fits-all solution, no matter the size and style of your business. This system is trusted to build a foundation and support not only large organizations but also mid and small size businesses. Thanks to SAP ERP, you can effectively manage your whole organization.

SAP ERP also provides integrated and customized software with customer partners of this unit so what you need is just pay for the modules you want. However, businesses should consider this before using this system because the cost is too expensive and it has many points that are not suitable for the business environment in Vietnam. For small and medium enterprises, you may find other business management software solutions that are more suitable for you.

Tally

Tally is an accounting software that provides features for small to mid-sized businesses to help people handle their finances. This ERP software for construction first appeared in 1986, it became a pioneer in the business software products fields. For more than 30 years, Tally has delivered path-breaking technology consistently. Nowadays, Tally is used by millions of users globally in 140 countries and continues to become the unchallenged leader in the enterprise resource planning software industry.

This system helps you monitor and manage payables and receivables effectively in your business. Besides, it provides a timeline regarding records purchases and bill payments. Creating customized invoicing on tracking orders, sales, and receivables is also included in Tally. 

The business ratios are displayed in the dashboard, which enables users to access other financial reports, the ratios and numbers are presented visually by graphs and charts to analyze easily. Besides, inventory management and HR modules such as payroll generation are also provided in this system.

OpenBravo ERP software

Openbravo is a multichannel retail business that allows retail chains to create a personalized experience and transform their physical store. This system is currently the software of more than 6,000 individuals and organizations. The ERP system is based on open source and should run well in any web browser.

The software develops based on a modern, logical workflow that is suitable for the operating and management activities of specific organizations. This system is developed on both mobile and cloud, which makes it easy for businesses to innovate in the business operations of retail chains or restaurants. What today’s omnichannel has to do is provide great shopping experiences to your clients and successfully build up to change and innovation. Openbravo can do this.

This management system has been successfully implemented in areas such as fashion. This ERP software for manufacturing is developed on open source code, thus Openbravo can run well in any web browser. Besides, Openbravo charges a monthly fee, based on the needs of the business, so you will have flexible pricing.

Deltek

Deltek is an integrated solution designed to support the entire operation process in the lifecycle of a project. This system provides many functions such as accounting, resource management, project management, reporting, labor, and compliance features, all in one product, which will help you develop your business efficiently. 

Deltek Vision is a web-based solution available for on-premises deployment or cloud. With this system, your business will be developed effectively with a complete overview and you can control finances and your projects accurately.  You can say that this ERP is “ERP software for manufacturing” because of all the functions it provides you. It’s worth being called like that!

Microsoft Dynamics ERP

Microsoft Dynamics 365 is a foreign ERP software sold through agents in Vietnam. This ERP software is an enterprise resource planning software focused on SMEs as well as subsidiaries and divisions of large and multinational enterprises. These ERP applications are part of Microsoft Dynamics, a line of business management software owned and developed by Microsoft. 

This software consolidates the functions of CRM and ERP and develops new features for the creation of new intelligent applications and assists in managing the business-specific functions of the business from the Sale process. Customer Service, Operations, Finance, Maintenance, Project Management, Marketing, and Customer Knowledge.

Besides, this system uses Business Intelligence (BI) and reports to provide users with real-time analytics and visualization, and easily monitor performance with high accuracy, thus you can have in-depth analysis capabilities. Besides, Microsoft’s worldwide network of partners has the knowledge and skills to help you implement an ERP platform based on your business needs, then you can customize it according to your business needs.

Microsoft Dynamics 365 provides app support for iOS, Android, and Windows Phone. The app is also available offline, so users can work without a data connection, and the data will sync automatically once the connection is re-established.

Oracle ERP

Oracle ERP is resource management software for all sizes of businesses, thus it is the ERP software for small businesses in case you need it. Oracle is the full suite of integrated and global business functions that helps organizations reduce costs, make decisions, and increase performance. 

This system is developed on the cloud platform, which helps businesses automate business processes. The platform is simple, easily scalable to serve various functions such as planning, purchasing, finance, reporting, project management, and other related activities. No matter if the size of the organization is small, medium, or large, the complexities of global business environments are solved by Oracle E-Business Suite applications.

This system is featured with a financial management software tool that can be easily integrated to generate reports based on the analyzed data, so this system from Oracle is designed to support financial management. Besides, Oracle ERP Cloud’s risk management software provides you with a repository for risk control, to minimize the risks in your financial statements.

Conclusion

Through automation and interconnected data, firms can reduce risk, promote collaboration, and drive growth. ERP software has for sure connected data through a fully integrated system, which typically saves company money that would otherwise be spent on hundreds of unconnected apps. Considering the top best ERP software above can definitely offer perks for firms.

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