The purchasing of stock is an unavoidable cost to many businesses. However the actual cost of the product itself is not the only cost involved in purchasing stock. There are many other costs, and minimisation of these is a good way to improve your profit margin.
The cost of purchasing stock includes:
- time deciding how many of which items are needed
- time determining which supplier will give the best deal
- money unnecessarily spent ordering stock for the “wrong” supplier
- time generating and sending the appropriate purchase order
- time checking new stock as it arrives
- time tracking where the stock is stored
Bonsai ERP ™ can reduce these costs.
How many of which items?
Bonsai ERP ™ can keep track of your inventory or stock, and hence know when the stock levels of which products are getting low.
In addition, after you have been using Bonsai ERP ™ for a little while, it can start to learn when your busy periods are, and suggest stock levels be increased before an expected busy period.
So you don’t need to waste time working out which items you need more stock of.
Bonsai ERP ™ keeps track of how much each supplier charges. It can use this information to suggest which supplier might be better for which product.
If your suppliers support standard business-to-business (B2B) computer communications, Bonsai ERP ™ could actually ask each supplier’s computer for current pricing or a quote, and generate a purchase order to the supplier with the best price. Estimated delivery times can also be taken into consideration, ensuring Bonsai ERP ™ won’t order from the supplier that takes 3 months to deliver just because they are a few cents cheaper than the one offering next day delivery.
Generating and sending the purchase order
Bonsai ERP ™ can both generate the purchase order, and send it via email or fax, meaning the entire ordering portion of the purchasing system can actually function without human intervention.
Of course, you can always tell Bonsai ERP ™ that all purchase orders must be approved by a human before being sent.
Checking incoming stock
For most types of products, there is no substitute for a human to actually check that the received stock is what was ordered, and in good condition. However there are several ways Bonsai ERP ™ can reduce even this cost. For example, if your supplier uses bar codes your staff can simply scan the barcode on each product to tell Bonsai ERP ™ what has been received, and allow it to be properly tracked. If you use your own product codes, Bonsai ERP ™ can print the relevant bar codes for your staff to place on incoming stock.
Tracking where stock is stored
When it is time to fill a customer order, the ordered item must be located before it can be packaged for shipment. This may not be a problem if you only stock a handful of products at one location. However if you have hundreds of products, or multiple warehouse facilities, then locating the stock as quickly as possible saves staff time, and hence your business’s money.
When incoming stock is received, Bonsai ERP ™ can be told where it is to be stored. Bonsai ERP ™ can use this information to tell the staff filling the order where the item may be found.
Should you need to move stock, for example from one warehouse to another, all you need to do is tell Bonsai ERP ™ and it will keep track of everything.