Are You Into Building Material Supply Business? Here Are The 5 Key Things To Manage Your Business Efficiently

Are You Into Building Material Supply Business? Here Are The 5 Key Things To Manage Your Business Efficiently
 | Updated on: January 3, 2023

Complexities of building material supply business

The building material industry is complex because it is unlike the other industries. Many industries such as the construction industry depend on it and any problems with the procurement of building material means trouble for all those industries.

Every aspect of the business must be carefully inspected and tracked when you are operating such a business. A major part of this complexity is the contracts that you have with the various businesses, such as builders, who will receive supplies from you. You must have the ability to perform cash management which includes outstanding management to ensure you are not missing out.

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5 key aspects for efficient management of building material business

The building material supply industry can thrive, but businesses need to proactively think about ways to do that. As a building material supply business, you should consider these 5 vital aspects for better operations and increased efficiency.

Outstanding management

Outstanding management involves an array of activities such as the credit control system, sending reminder letters, and emails to the correct people at the right time. It also involves account management of your building material business because you want to be on top of the accounts - what payment is pending, what payment is coming in, and what payment to expect on what date. Outstanding management gives an overview of what is taking place and it enables you to better manage your credit. For example, credible customers get a higher credit limit than those who are not.  

Order and invoicing management

The order and invoicing management are crucial in successfully running the building material business. To avoid problems from cropping up later, you want to generate invoices with all the vital details about every transaction. An invoice contains the details of the seller and the buyer, the date of transaction, the price, the quantity, the item details, the place of transaction, and other critical details that must be stored by your business. If any issues arise in the future, you can easily pull out the invoice that contains all the required details and ensure a faster resolution. Order and invoicing must always be a priority if you want efficient business management.

Multiple warehouses or godown management

As a building material company, you have multiple warehouses or godowns. You might have these warehouses in a single or multiple locations that are close or far apart. Either way, you want to have a way of tracking these warehouses, how much building material is stored at those locations, when it is stored, and all such details. Godown management enables you to track your building material inventory in real-time so you are aware of what is available and where. This allows you to make better decisions even when they need to be made in the nick of time. It eliminates the need to second-guess and use your instincts as the hard data is available to you instantly.

Efficient inventory management

Inventory management is a crucial aspect of building material businesses and it involves a host of activities. You must be able to track your inventory and ensure all types of inventories are accounted for. For example, if you receive stock from a third party, then you should keep track of that separately from the regular stock that you receive for better business management. Inventory management involves keeping track of all building material, when it was received, and when it must be sent to the respective parties. It also involves having an alert system whereby you are aware of when the quantity of a certain material falls below a threshold.

Insightful reporting

Reports must not be cast aside because they are vital for every type of business including MSMEs. Reports provide a window into what is going on in your business and whether you are meeting your goals. When you are running a building material business, a report enables you to get a bird’s eye view into your business. Reliable software solutions like TallyPrime enable you to get a granular view of what is going on and this allows you to either change your approach or do the same depending on whether the result is desirable or not. Generating reports regularly and basing your decisions on these reports help you to get to your goal faster.

TallyPrime: A business management software for the building material industry

TallyPrime is a robust management software that has been designed and developed to ease the complexities of managing your business. It is the best fit for the building material industry because of its advanced tracking capabilities, flexibility, and constant updates that ensure you are always using the latest version. Here are some of the top features of TallyPrime that make it perfect for building material businesses in Bangladesh.

Invoicing and accounting

Your business operations will go haywire without proper accounting software. TallyPrime is one of the world’s most trusted accounting solutions that is made for MSMEs. You want to account for every business transaction that takes place, the pending payments, the early payments, and the credit systems – and TallyPrime makes this process seamless. From the basics to the most complex, TallyPrime is capable of handling it all with ease.

TallyPrime’s invoicing feature creates professional invoices that comply with the invoicing rules in Bangladesh. You get customization options whereby you can add your business logo and details as per your choice. With the multiple billing feature, you can choose the billing format that best suits your business as per your preference and industry standards. You can generate price levels and set them as you please according to the type of customer. For example, you can assign different prices for retailers, wholesalers, and so on. This eliminates errors when generating invoices for different customer types. It also speeds up the invoicing process thereby eliminating lags and hassles.

Inventory management

TallyPrime has an integrated inventory management system that is better than many standalone inventory systems available today in Bangladesh. The inventory management system enables you to retrieve inventory-related information in a flash. Do you want to know how many items of specific building material are available? Do you want data on when they are to be supplied? Do you want to get alerts when the inventory levels drop below a certain predefined level? If the answer is yes, then TallyPrime is your go-to business management tool.

TallyPrime lets you manage inventory by batches or lots. You can also easily manage multiple locations and warehouses in Bangladesh with it. For example, if you have stored the building materials in a warehouse or if you have stored them at a godown, then TallyPrime enables you to track them all easily and instantly. The level of freedom and flexibility provided by TallyPrime allows businesses to better manage their growing business even if it is something complex like building material supply.

Job costing and order costing are connected because job costing is the subset of the latter. TallyPrime enables you to drill down to details with the job costing feature as you can accurately track the labor costs, materials costs, overhead costs, and so on. You can get to the minutest details with the software so you are fully aware of the actual costs for every job. You can break this down location-wise, understand the profits being generated, and get the details about the various losses that have been incurred.

Advanced reporting

It is almost impossible to come to conclusions based on raw data. You want the data to have meaning. TallyPrime’s advanced reporting capabilities ensure your building material business thrives as a result of reports that point you in the right direction. You can generate hundreds of reports and you have the flexibility to choose the level of detail of such reports. TallyPrime puts the keys in your hands so you can unlock your building material business potential as soon as possible. Reports show you what you have missed thereby unveiling new opportunities for growth in the building material industry.

For example, let us look into the inventory reports that can be generated by TallyPrime. You can generate the movement analysis report which throws light on the building material movement. The speed of movement and the time it takes is defined in this report so you know which items are high in demand and which materials are not as high in demand. You can generate stock aging reports based on which you can see how inventory management can be improved by your business. You can generate a re-order level report whereby you can define parameters to re-order building materials after a certain time or after the stock reaches a certain level. 

Cash flow and payroll management

TallyPrime’s cash flow management includes aging analysis so you know the pending bills and who has to pay them. The multiple bill settlement feature ensures you can make quick payments together to avoid waste of time. Do you want to know the cash flow status? You can do that using TallyPrime. The software solution also has a cash flow projection feature whereby you can plan better as you know exactly how much is coming in and how much is going out. The advanced software tool also provides you with easy interest calculations for better credit management.

Payroll management is a part of TallyPrime which means if you get this software, you don’t need a separate tool for processing employee payments. You can automate the process of payments for the higher efficiency of your building material business. TallyPrime lets you create groups of multiple employees such as for different departments for easy management. The software also has attendance types so that you can compute how much the employee needs to be paid depending on how many leaves they applied for. You can also do this based on production.

TallyPrime is available for a . Try it today for your building material business to experience why the TallyPrime software solution is a favorite of over 2 million businesses worldwide.

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