Articles

Inventory Management Best Practices in Manufacturing Industry

Posted on May 31, 2023September 16, 2024 by forceintellect

Inventory Management Best Practices in Manufacturing Industry Adopting Inventory management best practices plays a crucial role in the success of any manufacturing industry. Ensuring proper inventory control and inventory optimization enables manufacturing companies to increase efficiency, improve productivity, reduce costs, avoid stockouts, ensure timely deliveries, improve customer satisfaction. Implementing the following inventory best practices, can help manufacturers streamline their operations and ensure smooth production processes. Accurate Demand Planning: Accurate demand plannin...

Reorder Point | Optimize Inventory with Reorder Point

Posted on September 16, 2022September 16, 2024 by forceintellect

Reorder Point | Optimize Inventory with Reorder Point What is a Reorder Point? Before we get into the details of Reorder Point, what is the definition, formula, importance, benefits of Reorder Point, let me share a small anecdote. One manufacturing company that produced rolled steel products, ran out of stock of a commonly used bearing. It took almost 12 hours for the company to arrange for the common bearings and production came to a grinding halt till then! Now, if you consider it carefully, the cost of the bearing was minor, but the resultant impact of production coming to a halt wa...

Credit Control | Credit Policy | Credit Control Policy

Posted on January 29, 2021August 13, 2024 by forceintellect

Credit Control | Credit Policy | Credit Control Policy Credit Control which is also referred to as Credit Policy; is a business strategy adopted by companies to encourage the sale of goods or services by providing better payment terms and extending credit to customers. Simultaneously, companies set up well defined guidelines for the terms and conditions of extending credit, and course of action in terms of late payments, to safeguard their own interests. What are the advantages of extending credit? What are the important points to focus on while extending credit? To whom should companies e...

Goods Received Note | Goods Receipt Note | GRN Format

Posted on December 21, 2020October 29, 2024 by forceintellect

Goods Received Note | Goods Receipt Note | GRN Format Every company receives as well as supplies goods; whether it is in the form of raw materials, consumable items, or finished goods. Hence, Goods Received Note / Goods Receipt Note / also referred to as GRN is an essential document for every purchasing company. It is a vital record maintained by the purchaser. Goods Received Note (grn) serves as the internal document for the basis of clearing invoices against goods received and making payments thereof. Let us now understand every minute detail of what is a Goods Received Note / Goods Rece...

What is a Purchase Indent? | Purchase Indent Format

Posted on December 11, 2020October 29, 2024 by forceintellect

Purchase Indent | Purchase Indent Format Purchase Indent presents a formal requisition for the purchase of items/materials needed by an organization. Creating a Purchase Indent & setting up a workflow for its approval are crucial elements in defining the purchase process of an organization. What is the purchase process like in your organization? Do you have a defined workflow for purchase requisition? Do you create a Purchase Indent and approve it before creating a Purchase Order? In this article, we will cover the following topics : What is a purchase Indent? Why the need for...

Benefits of ERP | Benefits of ERP System | Benefits of ERP Software

Posted on November 27, 2020October 29, 2024 by forceintellect

Benefits of ERP | Benefits of ERP System | Benefits of ERP Software Implementation | ERP Benefits We observe that manufacturing companies are tentative to embark on a journey for ERP Implementation. primarily, because ERP implementation involves a long-term commitment as well as a considerable amount of time, money, and efforts to achieve digital transformation of the organization. Will ERP help improve our business operations? What improvement can we expect to achieve? What are the Benefits of ERP Implementation? These are some frequently asked questions, by companies contemplating ERP imple...

e-Invoicing | e-Invoicing under GST | ERP & e-Invoicing

Posted on November 17, 2020October 29, 2024 by forceintellect

e-Invoicing | e-Invoice under GST | ERP & e-Invoicing e-Invoicing is a major reform towards Digital India. e-Invoicing is the digitalization of the Invoices for goods and services provided by companies. The Economic Times has reported that "The Central Board of Indirect Taxes and Customs (CBIC) Wednesday notified that e-invoicing will be mandatory for the business to business (B2B) transactions for taxpayers having turnover of over Rs. 100 crore from January 1, 2021". In this article, we are going to discuss in-depth about e-Invoicing initiative in India, objectives, benefits, procedures,...

What is Inventory Valuation | Inventory Valuation Methods

Posted on November 6, 2020September 16, 2024 by forceintellect

What is Inventory Valuation | Inventory Valuation Methods Inventory is the most significant asset of every manufacturing company as it directly impacts the Productivity & Profitability of the organization. Every manufacturing company maintains some amount of inventory. Therefore, companies must be vigilant about how much inventory they have on hand; as well as the financial value of the Inventory on hand. Because "Inventory is money sitting around in another form". Let us now discuss What is Inventory Valuation? What are the Inventory Valuation Methods? and Importance of Inventory Valuat...

Getting Ready for ERP Implementation

Posted on October 20, 2020October 30, 2024 by forceintellect

Getting Ready for ERP Implementation By nature, ERP implementation is a very complex process, because, it involves establishing a single system that integrates all the important processes such as planning, purchasing inventory, production, sales, dispatches, finance, human resources, and more. ERP Software Implementation is a long term activity and investment that impacts all areas of the business. It involves a considerable amount of time, effort, and cost. Therefore it is extremely essential to have the right preparation for ERP implementation. The objective of this article, to educate manu...

ERP Contract: What Points should be covered?

Posted on October 13, 2020November 25, 2022 by forceintellect

ERP Contract: What Points should be covered? Companies usually decide to implement ERP Software to achieve a transformation in their business, to create a digital backbone, to streamline processes, improve efficiencies, and to scale & grow business. ERP Implementation is the first step of a long journey being undertaken by your Company and the ERP Vendor. Therefore it is very important to start this relationship on the right note, where both parties have a clear understanding of the objectives and expectations right from the beginning. An ERP Contract is a formal "ERP implementation agree...