The Challenge:
Inventory management is often a critical yet challenging aspect of running a business. While it’s often the backbone of operations, maintaining control over inventory can be a complex and error-prone process.
One key issue that can impact the cost and profitability of the business is maintaining control over "Units of Measure" (UoM). Simply put, UoM refers to the quantities in which items are purchased, transferred, and sold.
To illustrate, let’s consider the following scenario:
Imagine you run a warehouse and two retail shops where you sell bottled water. The water arrives at your warehouse in pallets, with each pallet containing 5,000 bottles. When transferring inventory to your shops, you use boxes that hold 100 bottles each. However, at the point of sale, the product (bottled water) is sold as individual bottles.
In this scenario, you’re working with three distinct units of measure:
Pallet (Purchase Unit of Measure)
Box (Transfer Unit of Measure)
Bottle (Sales Unit of Measure)
Without proper control over these UoMs, errors in cost calculations or inventory data can easily occur. For example, entering the wrong UoM during a transaction could drastically inflate costs or lead to stock discrepancies.
The Solution:
There are several areas that are to be maintained, but having defaults drastically helps. Inventory systems often include defaults for Purchase and Sales Units of Measure, but having a dedicated Transfer Unit of Measure can further streamline operations. Thus, in the scenario above, the ‘Transfer Unit of Measure Add-On’ comes in to save the day. This tool bridges the gap between purchasing, transferring, and selling inventory by introducing a third UoM specifically for internal transfers.
How It Works:
By automating the transfer UoM, the system provides users with:
Purchase Unit of Measure – How you bought the product (e.g., pallets).
Transfer Unit of Measure – How you transferred the product (e.g., boxes).
Sales Unit of Measure – How you sold the product (e.g., bottles).
It is necessary to note that this add-on is providing us with the third Unit of Measure, the Transfer Unit of Measure which in this case would be the box.
Key Benefits of the Add-On:
This powerful tool offers several advantages:
Reduced Errors: Automating UoMs ensures consistency and eliminates costly mistakes caused by manual data entry.
Improved Efficiency: Users save time by working with pre-configured defaults, enabling faster and more accurate processing.
Cost Accuracy: Proper UoM management prevents incorrect costing, safeguarding profitability.
Streamlined Workflow: Whether purchasing in bulk, transferring inventory to outlets, or selling individual units, the process becomes seamless.
Take Control of Your Inventory
Managing inventory doesn’t have to be a headache. With us guiding you through this strategic integration, businesses can take control of their stock with confidence, knowing that they are equipped to handle the complexities of modern inventory management.
We encourage you to reach out to us at marekting@onpointerv.com for more details on the benefits of this addon and to assess whether it can serve your operations.
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