Effective inventory management is necessary for manufacturing and distribution businesses. An ERP (Enterprise Resource Planning) software for inventories, materials, and finished items can help to streamline processes, increase accuracy, and boost overall productivity. Let’s look at how Financials.Partners, an ERP can improve the management of raw materials, packaging materials, and finished goods.

Raw Material & Packaging Material Management

Managing raw and packaging materials is crucial for smooth production processes. An ERP system helps in several key areas:

1. Multiple Stock Locations

Every item in the inventory is assigned a unique code along with details like item name, description, unit, origin, and reorder quantity. The ERP system also tracks the quantity of items across multiple stock locations, providing real-time visibility into inventory.

2. Stock Receiving against Purchase Orders

Financials.Partners can manage the receiving of stocks against Purchase orders. Items can be placed at multiple locations and made available for use for manufacturing or sales.

3. Return of Items to Suppliers

Received items can be returned to the supplier through a separate transaction, generating a Return Note Number. This ensures proper documentation and tracking of returns.

4. Issuance of Items

Items can be issued against requisitions or directly for production.

5. Return of Items (Internal)

Items issued in excess may also be returned for maintaining accurate item inventory

6. Gate Pass and Stock Adjustments

Financials.Partners can manage gate passes for returnable and non-returnable items and handle scenarios like damage, shortages, scrap, and excess. The system updates stock status for accurate inventory maintenance and facilitates physical stocktaking.

Finished Goods Management

Once production is complete, managing finished goods efficiently is vital. Financials.Partners plays a significant role in this process:

1. Transfer to Finished Goods Stock

Products are transferred to finished goods stock after production, ready for issuance against delivery challans.

2. Picking Slip Generation

Financials.Partners automatically generates picking slips on the basics of approved delivery order considering product batches and their expiry.

3. Delivery Challan and Invoicing

Delivery challans are generated from picking slips, and invoices are created automatically based on these challans, ensuring a smooth and error-free process.

Conclusion:

Using Financials.Partners, an end-to-end ERP with real-time integration including Financial Accounts to manage inventory materials and finished goods provides various benefits, including increased accuracy, reduced operational costs, and streamlined operations. Businesses that integrate these functions under a single system and can focus on growth and customer satisfaction while being confident that their inventory is being handled correctly.