Do Your Purchase Planning With Efficient Inventory Management System
Importance of the purchase planning in the manufacturing industries or trading companies, to fulfill their continuous work orders are timely and their purchases are getting streamlined. Any time effective and efficient purchase planning is done, which can reduce the operational costing and also maintain the cost of stock keeping in the warehouse. Purchase planning is the process wherein a company is deciding when, what to buy and from where & from whom to buy. Simultaneously inventory management which saves the money and allows customers to fulfill customers requirements in time. Inventory management software helps in cost controlling the operation expenses.
What is Purchase Planning?
Purchase planning plays a necessary role in inventory management. The purchase manager handles all requisitions related to stock in the warehouse. In simple terms, purchase planning provides a structural approach to managing purchasing activities. It defines lucrative material purchase plans, such as what to purchase, in what quantity, and from where to purchase it. Planning typically occurs as part of the budgeting process, identifying inventory needs to operate the business properly and control the cost of goods with suppliers.
Read our blog : Purchase Planning With Efficient Inventory Management System
Why is Purchase Planning So Important for Manufacturing and Trading Companies?
In a manufacturing company, work never stops. You need raw materials at regular intervals. If material does not arrive on time, your production stops and your work order gets delayed.
For trading companies, the story is the same. If you don’t have the right product in your godown, you lose the sale.
Effective purchase planning helps you:
- Fulfil your work orders on time
- Reduce your overall purchase cost
- Reduce your warehouse and stock-keeping cost
- Run a modern, well-managed warehouse
That is why every growing business in India now uses purchase planning software.
Key Considerations in Purchase Planning
Customer-Centric Focus
At the end of the day, everything you buy exists to serve a customer order. This is especially true in wholesale and distribution businesses, where your customers are often part of a larger supply chain and expect reliable, consistent stock availability. Your purchase plan should always be built around keeping that promise.
Warehouse and Storage Optimization
Warehouse space costs money. Rent, staff, electricity – everything adds to your expense. If you overstock your godown, you block space and money. If you understock, you lose sales. Smart purchase planning helps you order as per actual demand. You can also move fast-selling items to the right warehouse and avoid shortage.
Business Viability
You want steady income and you want to grow. But if you block all your working capital in extra stock, you cannot grow or diversify. That extra stock just sits idle and your profit goes down. The purchasing plan must, therefore, balance the requirements of the business with the demands of the customers.
Budget
The business must consider how supply chain support functions fit the company’s budget, along with the purchase costs of stock. The purchasing strategy should reduce costs such as warehouse staffing and HR management. Core operations must streamline for maximum efficiency to reduce the cost of functions that deplete profits.
Major obstacles in purchase planning Process
- How to do Purchase Planning?
- How to handle & plan Work orders?
- How to handle Vendors?
- How to do Product Mapping?
- How to do vendor tagging?
- How to Float Purchase Inquiries?
- How to handle Vendors Purchase Quotation?
- How can Compare Vendor Quotation?
- How to handle Purchase Orders?
- Is it possible to handle all the Pending Purchase Plans on a single Computer screen?
- How to handle Pending Purchase orders with Vendors?
- How to increase Inventory Productivity?
- How to Handle Purchase Bills?
- How to handle entire Purchase Returns @ Single Screen?
- How to handle material movement cycle?
- How to do Stock adjustment?
- How to fill the Gap Between Purchase & Inventory Tier
- How to Make Purchase Indent?
- How to Check and Define Product Re-Order Levels?
SalesBabu online inventory management software provides a robust purchase planner tool on a single screen, where companies can easily manage their purchase quotas and are able to schedule purchase plans effectively.
Read our blog
Benefits of SalesBabu Purchase Planner with Inventory On-Demand
- Effective Purchase planning: Purchase planning is all about the stock monitoring, purchase order management – receipt of order quantity, what is the receipt date, when was the delivery date, what mean delivery was done, etc. apart from this demand forecasting and other related activities is the effective purchase planning. Inventory can be optimized with the inventory management software.
- Purchase Order Handling: In the inventory software, purchase order – PO is an official document shared with the supplier for supplying the materials. In the PO the company will indicate – how many quantities required, what type of product or raw material and the mutually agreed price.
- Enable to Float PI’s(Purchase Inquiries): Companies use purchase requisition inquiries to inquire with suppliers for saleable stock and raw material items for production. The PI includes the PI request number, date, supplier name, and product or raw material details. Companies float this to different suppliers to receive their quotes for the inquiry.
- Compare Multiple Quotation with Multiple Vendors: During this process the multiple vendors share their quotations specifying the quantity and pricing. In the inventory control software you can check the comparison on the received quote price and list out the least price quote before placing an order with the vendor.
- Get Re-Order Level on Product and Raw Materials: With the help of SalesBabu inventory software India, reorder level status has been provided and the inventory level shows when to place a new order to maintain a safety stock.
- Handle entire Work Order: Inventory management software helps in the work order process in a systematic way. Handling a work order – new job assigning a task and review through the various operational steps. On completion of the work order, the process will be considered as a blueprint of the company project success.
- Facilitates Job Work Scheduler Separately: Job work scheduling is managing the work allocation as per the staff availability. Through online inventory management software, it enables the start and finish on every job task.
- Enable to make P Q (Purchase Quotations): Purchase quotation is the supplier’s response to a request for quotation issued by a purchasing company for the products or raw materials.
- Enable to do multiple GRN against the Partial vendor Order: In this case inventory control software allows to configure whether to enter GRN for all the goods, also allowing to enter partial delivery received from the supplier.
- Enable for Entire MRN(Material Receipt Note) on one screen: Material Receipt Note is indicating the receipt of material details from the supplier and which is delivered at the company.
- Manage the entire Vendor Bucket: Vendor Bucket is all about the aging report related to the supplier payments.
- Get real time Inventory Updates on Stock: Online inventory management software provides real-time updates on inventory levels and stock sales. It ensures the availability of accurate stock data across one or more locations.
- Product Sampling: The software enables product sampling, which reduces the need for many people during the counting of large stock volumes. It ensures more accurate stock counts with minimal time.
- Capture Sales Returns: Inventory management software helps to capture product sales return. Sales return of the product can be many reasons. Product may be not suiting to the customer, it may damage the piece or because of the quality.
- Vendor’s Mapping with Products: The software allows users to map vendors with products. This feature links the supplier’s product to the product numbers specified by the company for easy identification.
Conclusion
The Core Value of SalesBabu inventory management software is that it can track the entire stock transaction at micro level and can provide real time inventory status on material and allow companies to do effective purchase planning against the stock requirements. Hence, SalesBabu inventory software allows organization to manage & synchronize entire Purchase Plans, Pending Purchases, Vendor & purchase Quotations and Purchase orders on a single computer, which enable inventory manager to keep track of all the Stock Movement (Inward & outwards).
