sales inventory system
Relationship of Sales and Inventory
In order for your sales force to do its job, there must be enough inventory on hand to sell. A successful relationship between sales and inventory operations involves either a predictable rhythm of inventory turnover as a result of consistent sales, or dependable communication between the two divisions so the inventory department will know how much the sales department needs. In order for this system to function smoothly, the sales department must have a clear idea of how long it takes the inventory department to acquire more product, through production or ordering, and must plan its orders accordingly.
Consequences of an Imbalanced Sales to Inventory Ratio
If your company has more inventory on hand than it can sell in a reasonable time frame, then it must expend resources to store and handle this backlog of product. In addition, buying too much inventory ties up capital that you could be using for day to day operations. If your company has insufficient inventory on hand to meet customer demand, you run the risk of losing customers by being unable to provide for them.
Background/Problems
When materials are received or created in the factory they are packaged in some form of stock-keeping-units (SKUs, Packs, Handling Units) for ease of transport. Each pack is given a unique code (Pack number) for ease of identification. Packs can be coded in various ways e.g. as part of a batch; or unique pack numbers for each pallet, box, tote, container, stillage; or a unique serial number for each part.
When inventory is created or received at goods in, pack numbers have to be generated and quantities of units packed recorded. Typically bar-code labels are printed and attached enabling product to be located and moved in the factory or warehouse. Additionally isolations are managed at a pack level, allowing inventory to be quarantined prior to further investigation and decision making.
Solution
The Inventory module of Shopfloor-Online
In order for your sales force to do its job, there must be enough inventory on hand to sell. A successful relationship between sales and inventory operations involves either a predictable rhythm of inventory turnover as a result of consistent sales, or dependable communication between the two divisions so the inventory department will know how much the sales department needs. In order for this system to function smoothly, the sales department must have a clear idea of how long it takes the inventory department to acquire more product, through production or ordering, and must plan its orders accordingly.
Consequences of an Imbalanced Sales to Inventory Ratio
If your company has more inventory on hand than it can sell in a reasonable time frame, then it must expend resources to store and handle this backlog of product. In addition, buying too much inventory ties up capital that you could be using for day to day operations. If your company has insufficient inventory on hand to meet customer demand, you run the risk of losing customers by being unable to provide for them.
Background/Problems
When materials are received or created in the factory they are packaged in some form of stock-keeping-units (SKUs, Packs, Handling Units) for ease of transport. Each pack is given a unique code (Pack number) for ease of identification. Packs can be coded in various ways e.g. as part of a batch; or unique pack numbers for each pallet, box, tote, container, stillage; or a unique serial number for each part.
When inventory is created or received at goods in, pack numbers have to be generated and quantities of units packed recorded. Typically bar-code labels are printed and attached enabling product to be located and moved in the factory or warehouse. Additionally isolations are managed at a pack level, allowing inventory to be quarantined prior to further investigation and decision making.
Solution
The Inventory module of Shopfloor-Online