By Bhanudas S. | 14 October 2020
A smoothly functioning inventory management system is one of the cornerstones of successful farming today. With optimal inventory management, farming companies can track everything from seed to sale in real-time and help you in saving a lot of your cost and efforts in overall farm management.
By ensuring timely reprovisioning of inputs and by eliminating hidden costs of managing procurement and stock storages, an inventory management system can help you in optimizing your farm management efforts and reaping maximum monetary benefits. Thus, managing your inventory efficiently not only aides better decision making but also enables digital farming with a robust farm management platform.
Managing the complex inventory needs can become extremely difficult, especially when you are handling farm operations across multiple locations and sites. In absence of an efficient inventory management system, agribusinesses can be deprived of better packhouse management and greater cost savings. Similarly, with lesser visibility into your fluctuating stock levels, maintaining adequate amounts of farm inputs - fertilizers, consumables, raw materials, etc. can also be very challenging.
A smart inventory management system can help you in planning and maintaining adequate input levels so that there are no delays in your production operations. Automated inventory management systems can expedite several inventory management tasks and enhance your financial reporting accuracy for better decision-making. Furthermore, it can also systemize the process of reordering to ensure adequate inventory levels at any given point of time.
As you start handling your farming operations across multiple locations and start housing inventory in multiple places, managing the increased procurement operations of locally and centrally purchased farm inputs can be very arduous. Improper multi-location inventory management can lead to stockpiling inputs and goods at one location while running dry in another.
FarmERP provides improved visibility into inventory counts across different locations and helps you manage your operations better with a smart multi-location inventory management system. Similarly, with the list of to-be-expired and expired items on offer, agribusinesses - especially contract farming companies can ensure that inputs and raw materials are utilized in the best possible way.
Our inventory module helps you in reducing the impact of order-to-receive intervals by always maintaining specified minimum stock levels across all your inventory locations. Thus, FarmERP’s robust inventory management system can help you in maintaining the right supply of inputs, machinery, equipment on the farm and thereby, mitigating excessive storage costs.
For the proper functioning of inventory management techniques, it is highly important that every transaction, right from tiny stock adjustments to sales and purchases, are accurately accounted for. With the number of transactions being quite a lot, not having integrated inventory and farm accounting processes could introduce critical disparities between the two systems.
This increases the risks of delays and inaccuracies, leading to erroneous financial reporting and also adds to your expenses with additional accounting costs. With FarmERP’s inventory module, every inventory transaction can be linked with the accounts.
This integration ensures effective financial reporting and offers clear insight into your stocks and funds by providing an accurate financial account of your business. Thus, with the inventory-accounts integration, FarmERP can help your agribusiness gain a competitive advantage with improved abilities to reduce delays, errors and compile accurate financial reports.
Ensuring optimum level of farm inputs, raw materials etc at all times can be one of the major challenges in the inventory management process. The lack of certainty about the accuracy of inventory levels can lead to insufficient or surplus stocks, both resulting in unnecessary costs for your business.
Thus, an automated inventory management system is essential in order to maintain the perfect stock levels that do not burden your agribusiness with additional costs. After analysing out-of-stock patterns, you can determine the minimum quantity of farm inputs, pesticides, fertilizers, etc that should always be available in your inventory.
By helping in the creation and setting up of stock keeping units, FarmERP makes sure you stay on top of your inventories with optimized processes. We generate reordering alerts whenever your inventory count touches the predefined reorder levels. With improved visibility into the stock levels, FarmERP’s smart farm management techniques help you in making better decisions to ensure adequate inventory levels at all times.
With the constant inflow and outflow of farm inputs and finished goods, your inventory is in a constant state of flux. As a result, it can happen that, at times, your virtual inventory records don’t match with your actual physical inventory counts. This can affect your visibility into your stock levels and can have a severe impact on your decisions and also affect your sales and purchases.
Hence, it is necessary to periodically reconcile your inventory records against your actual stock. This helps in updating records and provides you with perfect inventory counts so that you can make better, well-informed decisions.
FarmERP helps in making the gruelling task of stock adjustments or inventory reconciliation simpler for you with our inventory management system. Thus, by keeping track of your physical inventory levels with regular reconciliations, we help you in effectively spotting patterns and addressing discrepancies to improve your procedures and prevent any possibilities of malpractices.
Although spreadsheets are great for storing inventory information, they cannot track your incoming and outgoing stock in real-time. As a result, every time you make a sale or purchase, the inventory has to be updated manually. This not only consumes a large fraction of your time but is also highly inefficient.
Hence, real-time stock tracking is essential to optimize your inventory management and to keep up with the complex needs of your agricultural inventory. Automating inventory management processes considerably reduces the time, resources and efforts spent on managing your stocks. With FarmERP’s inventory module, updating and synchronizing inventory with sales in real-time becomes quite easier.
By automating inventory management, the possibility of errors is reduced significantly with a lesser reliance on time-intensive manual processes. Our inventory management module not only gives you real-time stock counts but also centralizes all your inventory and sales data. Thus, by reducing redundancies, mitigating human errors, and eliminating manual processes, our inventory system can help you in automating, accelerating and digital transformation of your agribusiness and your most crucial business operations.
One of the biggest challenges for farming companies is to maintain inventory levels in such a way that it is neither overstock nor out-of-stock. The out-of-stock situation can affect customer satisfaction with longer wait times while overstocks can lead to greater storage pr holding costs. An efficient inventory management system is necessary for agribusinesses to ensure that there are no discrepancies in maintaining an optimal supply-demand balance.
FarmERP’s inventory management system can help you in minimizing losses associated with deterioration, pilferage, spoilage, etc. Our inventory management software keeps your inventory synced with your sales and purchases in real-time to help you strengthen customer management and maximize profitability.
Thus, FarmERP’s farm management system provides digital solutions to optimize your inventory management efforts and efficiently tackle critical stock keeping challenges. We guide you in making well-informed decisions so that you utilize your resources optimally and avoid the troubles arising from understocking or overstocking your inventory. Contact us to know how our inventory solutions can boost your agribusiness growth by effectively optimizing and simplifying your inventory management systems.