Purchasing and Inventory Management - Five Must-Have Tools

If you are involved in managing inventory, youmeasure.
are aware of the hassles that can arise due toMinimum and maximum quantity setup
purchasing issues. Having far too many of anThis handy purchase order tool allows you to set
obscure item or running low on a bestseller, areup minimum and maximum amounts by item. This
sure clues that you and your company canallows you to run a report to see which items are
benefit from a more robust purchasing andrunning low and need to be ordered, or which are
inventory management tool. Technology hasoverstocked and may need to be liquidated.
advanced over the years, such that you noDrop shipment
longer need to keep track of purchasing activitiesMost businesses do receive requests for drop
on paper. Consider these benefits offered byshipments, at least every now and then. If you
software programs of today.need to order items and have your supplier ship
Order suggestionthem directly to your customer, a tool for
A major benefit of using software is it can easilyhandling drop shipments is a must. Handling drop
collect and analyze data, a task that would takeshipments means that the system will allow you
an employee much longer to do manually. Lookto specify a ship-to address that is different than
for a purchase order system that can analyzeyour own address. Without this tool you will end
past demand, and suggest which orders need toup manually entering ship to data which results in
be placed based on that knowledge. You can thenwasted time and increased margin for error. This
use the report as a starting point, and use yourfeature is crucial for those who drop ship large
own judgment on which purchase orders toquantities of items. It should also allow you to
create for which items. A purchase order systemidentify the sales order to the purchase order, so
should also track who the item has beenthat the sales order can automatically be invoiced
purchased from in the past and automaticallyas soon as the vendor communicates that the
order it from the last vendor and default the costorder has shipped.
to the last cost paid for the item. If you aren'tReceive partial orders
ready to make the jump to having the systemAs we all know, sometimes the orders we place
recommend what should be ordered, look for aare not always delivered in full. In these cases, it's
system that will allow you to simply enter a list ofhelpful to have the choice of whether to receive
items that need to be ordered. The system willthe partial shipment and keep the rest of the
then assign the vendor and last purchase cost, sopurchase order open, or to simply receive the
the purchase order is quickly and easily generated.items and cancel the remainder of the items.
Flexible item orderingSometimes the vendor will notify you that they
Your business likely has its own set of producthave shipped what they have and the remainder
numbers that are different from your vendor'sof the order will be canceled. A proper purchase
part numbers. Since your vendor is typicallyorder system will include an option that allows the
unfamiliar with your item numbers, it's best touser to cancel the remainder of an order, instead
place orders using their numbers. Some purchaseof having to manually cancel each line.
order systems allow you to create and printAll of these purchase order software tools can
purchase orders using both numbers, which ishelp you keep your inventory stocked with the
extremely helpful to you and your vendor.items you need, and lean on those that you don't.
Another flexible purchase order tool is the abilityThey also help you manage purchase orders
to place orders in multiple units of measure, inmore efficiently, saving your company time and
case you need to purchase the item in one unitmoney.
of measure and sell it in a different unit of