How An Inventory Management System Can Help Your Building Material Business

How an inventory management system can help your building material business
 | Updated on: December 9, 2022

An inventory management system allows you to fulfill orders placed, generate better profits, lower associated costs, and improve your business cash flow. In the building material business, the inventory management system plays a key role in ensuring you can do all this and meet demand by other industries. While the process of inventory management is complex and may take some time to master, the right tool can help building material businesses eliminate problems and enable them to flourish by providing insights that make a difference.

How Does Inventory Management Technology Improve Business Profits?

How To Choose Business Management Software In Bangladesh

Inventory management system’s role in building material business

The inventory management system is an integral part of ensuring efficiency in your building material business. The following are some aspects of an inventory management system that contribute to the proper functioning of your building material business.

Warehouse management/Multiple-godown management

Warehouse management is a critical part of an inventory management system. When operating a building material business in Bangladesh, you are going to store a set number of items that are in demand in your warehouses. An inventory management solution enables you to manage all the details regarding what is stored and where it is stored. This is particularly important when you have multiple warehouses or godowns across Bangladesh. A comprehensive inventory management software helps you get the right information and makes it easier to locate the materials and reduces  the time taken to find that material when needed.

Stock-aging analysis

The Stock-aging analysis provides information about your stock's status, how old it is, and the time period of each item sitting idle in your godown before being sold or utilized. With a robust solution like TallyPrime, you can get valuable insights into your inventory, thereby helping optimize inventory.

Reorder level

Many industries depend on the building material industry and the best example is the construction industry. When you are operating a building material business, you want to ensure you always have sufficient stock while avoiding overstocking and understocking situations. If these two problems occur, your cash flow will get stuck. One of the features of the inventory management system is the re-order level feature whereby you can automatically reorder items once the stock level reaches a minimum. This enables easy and automated replenishment without your manual intervention. This can save considerable time and effort.

Stock movement analysis

The stock movement analysis is a part of inventory management and it shows how long it takes for the stock item to move from purchase to consumption. For example, let us say a building material is available at your warehouse. The stock movement analysis report will help you get insight into how slow or fast a particular item is moving in and out of your inventory.  Comprehensive solution like TallyPrime offers a wide array of inventory reports that enables you to keep a watch on stock movement and manage your inventory more efficiently.

Profitability analysis

Profitability analysis is critical for building material businesses because it shows you exactly how much profit you have generated. A reliable inventory management solution will enable you to generate a profitability analysis report. Whether you want a general view of your profits or you want a more specific breakdown for each item, you can find it all in this report. This allows you to know the high and low profit yielding products and help invest better. 

How TallyPrime helps?

TallyPrime is a leading inventory, accounting, and business management software. It is currently being used by over 2 million businesses globally and counting! TallyPrime is a simple inventory management tool and it encompasses a host of features that make it successful from the day it was launched. Today, it is being used by many businesses in Bangladesh who want to make a difference by improving their operational efficiency and the productivity of their employees. TallyPrime is an advanced software solution that lets you do simple tasks quickly, ensures complete accuracy, provides automation, and is serious about data security.

The following are some inventory management features of TallyPrime that make it the best choice for building material business owners.

Tracking and automation capabilities

TallyPrime cuts down on time as it enables automation of many processes such as re-order levels of inventory. The building material business depends on tracking and automation because you always need to have enough to meet customer demand. You can then manage the inventory you have according to batches and lots along with generating reports such as batch summary to always know your inventory’s status. The automation cuts down on the time taken to do a task manually and it also eliminates human error which is likely to occur in your business if everything is done manually. TallyPrime also enables manufacturing cycle tracking and recording.

Generate in-depth reports

TallyPrime can generate over 400 reports. Want to get into the depths of inventory? You can generate a report for that. Want to get a general overview of your inventory and the profits generated? TallyPrime enables you to do that. The software solution is known to enable you to generate reports of as much detail or as general as you want. Every report generated is completely accurate and it is generated in seconds. Some of the popular inventory reports you can generate include re-order level reports, stock-aging reports, and stock movement reports. Reports are essential for smart decision-making that is well thought-out.

Outstanding management

Managing outstanding dues is crucial for your building material business cash flow. Outstanding management is critical for businesses to run smoothly because it enables you to know how much you owe to others and how much your customers owe to you. Let us say a construction company Construct Ltd. ordered items and you sent the shipment to them. But the buyer did not pay yet. You will have this detail under outstanding receivable because you are waiting for the payment to get through to you. TallyPrime provides options such as sending reminder emails automatically to such customers to improve cash flow and eliminate cash flow problems.

Insights into job work and job cost

When you are managing inventory, you want to keep a record of all the transactions that have taken place and all the costs related to every activity. TallyPrime supports this and enables you to record and track all the receipts and costs associated with the job work. This recording of every minuscule detail means nothing will slip through your hands and the data you have will be complete. This makes it easier to manage your building material business and allows you to always have the tools to make decisions that will be best for your company. The job costing feature is important as it enables you to understand the cost of each job.

Warehouse management

You can manage multiple locations and warehouses with TallyPrime. Want to pull out information in real-time? You can do that with ease in TallyPrime! The software enables you to track all your inventory according to bins and racks. To make it easier for you to manage your inventory, you can even create several godowns. You can then organize the inventory based on the type, where it is received from, and so on. The management of all these becomes practical with TallyPrime as it provides a platform for you to manage it all using a single advanced system.

Third-party inventory management

You can manage third-party inventory with TallyPrime. The software tool allows you to break up the different inventories for easier management. As you know, managing a big batch at once is impossible, especially in the line of building materials. When you separate the inventory into groups according to the type of inventory, it becomes much more manageable and easier to keep track of. When you receive third-party stock, TallyPrime enables you to track it and manage it so that you are on top of your regular inventory and third-party inventory.

Invoice management

TallyPrime makes invoice management simple and it gives you a plethora of options to customize. You can add your building material business logo to the invoices and add addresses as per your choice. You can effortlessly create invoices in seconds and these invoices will contain all the required fields such as item description, quantity, price, and so on. Additionally, it also helps you to opt for the same invoice format or even remove details or change addresses when you require. This level of flexibility and the automation aspect enables you to track your receivables with ease.

TallyPrime is simple to use and this makes it the right choice for all types of MSMEs. The in-depth tutorials and guides ensure you know exactly what to do when you want to generate a specific inventory report, define the threshold, and so on. TallyPrime’s constant innovation ensures you are using the best version of the software solution and are reaping the benefits by growing your building material business the way you always wanted. You can opt for the of TallyPrime today to experience first-hand how the software works for your business and how seamlessly it integrates with the current processes you may have in place.

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Stay on top of your inventory with TallyPrime.