Establishing a non-profit organization is a challenge. This is primarily because, at the end of the day, the benefits far outweigh the costs, but this does not mean that there are no ups and downs. For non-profit organizations to operate in the most cost-efficient way, the use of non-profit inventory software is essential to assist the organization and also make the most of all that the organization has to offer.
Inventory management is a key component of the supply chain which monitors the flow of goods from the manufacturer to the warehouse. From the warehouse, these facilities are then transported to the final buyer.
Even with non-profit inventory software, business strategies still need to be continually reassessed. For this to be possible, it is crucial to be able to have a thorough understanding of what are the kinds of inventories at hand, the challenges that it brings, and also the need for better inventory management practices.
- When it comes to various kinds of businesses
To assist in making management easier inventory stocks can be categorized into a few types which will depend on what industry the firm belongs to. This division can then speed up productivity by outlining the specialized needs of every kind of business. Once that you already know what your end product is going to be, you can now start to shortlist the purchase orders for your stock.
- For manufacturing firms
If your organization is into manufacturing and production, then you are deploying inventory to be able to convert it into another form. With a business like this, your customers could be both consumers and other businesses.
With manufacturing business, your inventory stock will usually include the following:
- Raw materials or the items that are needed to produce the final product
- Working progress inventory or items that are in the process of construction or production
- Finished goods or items that are already assembled or in a completed form.
- For retail businesses and distributors
This type of business does not maintain raw materials or work-in-process. The main focus of this type of business is to deliver completed products to its customers. Retail business encompasses establishments like department stores that stock grocery items or shops that are housing various brands under one roof.
However, for distributors, they buy inventory goods from the manufacturers and then sell the items to retailers. This distributor is often referred to as the “middleman”.
- For service providers
Of course, not all businesses are selling finished goods. Some business specializes in providing certain services to their customers. But, they will still require an inventory in order to serve as assistance to these services. For example, having a medical inventory will help medical staff in the diagnosis and treatment of various illnesses.
- Challenges coming from stock management
A recent statistics reveal that US industries are losing a whopping amount of $46 billion due to inventory shrinkage. This happens as a result of the lack of robust logistics and effective supply chain management. Having poor stock control policies can result in an adverse impact on the performance of the business which might lead to the following challenges that are both for small and medium-sized businesses.
- Forecasting becomes inaccurate
There are a number of organizations wherein they treasure their insights as a tool that they can use for them to be able to predict future demand and help in developing strategies. The business will be bound to take a hit if your insights are not reliable. This will eventually result in excess inventory cluttering in your warehouse or unsatisfied customers because they are receiving their deliveries late. Both of these scenarios will have an adverse effect on your company’s financials and operations.
These malpractices can be resolved and be overcome if the organization is willing to invest in non-profit inventory software to manage your items. By doing this, it will allow you to tap into accurate real-time data which can significantly streamline procurement. And if you are already able to monitor the consumption trends of your organization in real-time, you are now better equipped in reducing the chances of obsolete assets in your inventory including the delays in order completion.
- Poor access to data
Non-Profit inventory software is not limited to only one department. Even though the administration is the one responsible for taking the orders and making the necessary purchases, the whole team needs to be updated on the current condition of the inventories.
So, for example, the inventory manager will decide to switch to a cheaper vendor, but because there is an absence of an employee management system, this information will never reach the admin officer. Thus, if this occurs, the company eventually ends up purchasing the wrong stock from the old vendor. Thus, it is essential that the organization will invest in a non-profit inventory software wherein the data can be readily accessed by everyone in the office.
- It can be hard to meet compliance
To be able to maintain quality standards, all businesses including the non-profit industry are expected to follow a set of regulations that are being laid down by governing bodies. So, safety stock and inspection are being carried out in line with these recommendations.
It is essential to understand the all companies should be cautious of compliance rules because when you fail to meet them, this may result in hefty penalties and a marred reputation. Aside from that, it may also compromise the quality and the safety of your inventories.
Thus, for your organization to avoid such a fate, you need to conduct regular audit sessions to make sure that your inventories are meeting all of the relevant standards. This is aside from the fact that we all know that regulatory bodies tend to conduct unannounced surveillance of facilities so it’s better that you don’t slack off in this area.
- Get the most out of your non-profit inventory software
The importance of having a non-profit inventory software in an organization is massive. For an organization to maximize its growth, it is crucial that companies should work on their inventory management process. The right non-profit inventory software will be able to provide your organization with a lot of features to boost up the utilization of your inventory.
Below are some ways where you can upgrade your organization’s inventory portfolio for maximum returns in the future:
- Be able to track items across all locations for constant updates
One essential factor that concerns warehouse management is tracking your organization’s inventory items. Whether you belong to the small-sized or large-sized organizations, you will have a lot of goods that will be coming in and out. Thus, the best way for your organization to always keep an eye of the movements is by maintaining a robust system of check and balance by installing non-profit inventory software for your organization.
In doing so, your organization will be able to track every movement of an item every time it is being checked out for use or for maintenance. These practices will help your organization to achieve data transparency and also signify the importance of inventory management in an organization. By being able to track your inventories, you will be able to easily locate your inventory in large storage houses and at the same time create an efficient workflow opportunity for your employees.
- Be able to streamline your inventory movements
One essential definition of inventory management also includes items in transit. For businesses that are on the go, maintaining records of frequently used items can become challenging. More often than not, it happens that employees will require a similar bundle of goods for projects in various locations. Thus, the most efficient way of handling such situations is to create duplicate carts so that it will enable you to have seamless check-ins and check-outs.
There is non-profit inventory software that is designed to satisfy your organization’s inventory needs. By keeping in mind the importance of inventory management in an organization, this feature will be able to add benefits to your employees as well. Your manpower will no longer need to waste time in the preparation of the same cart that they used for a previous business conference. By having an effective time allocation, this will motivate employees to manage tasks in a productive way.
- Be able to record usage over time to forecast demand
One wise business tactic is to maximize short-term returns at the same building long-term strategies for the future. This is attainable when you are able to record, store and analyze everything that is related to your business performance.
Today’s company performance and trend depict how your organization’s inventory will evolve over the next few years. This type of phenomenon will highlight the importance of inventory management in an organization. You can start doing this by tracking the history for all of your inventory items.
When you already have information that is related to item utilization over time, this will give you a fair idea of what changes you will need to make in your current stock and inventory management practices. By having a comprehensive database, this will enable your organization to make strategic decision-making and inventory optimization. You might also keep track of their task management by using time tracking tools, such as Workpuls, which calculates your employee’s productivity based on their activity and time spent on those tasks.