Intro
E-invoicing software solutions are no longer just about transforming invoices into electronic forms that replace paper ones, thereby, decreasing paper consumption. The impact E-invoicing solutions offer today is rapidly growing to serve more pivotal roles in business management as well. Today, we delve deeper to discover how implementing an E-invoicing software solution helps you elevate the Supply Chain Management (SCM) for businesses.
But before that, let us introduce you to two important terminologies that you need to be familiar with to get a better grasp of how this whole thing intertwines together and because it’s our job, as usual, to simplify the complex for you!
What is Supply Chain Management?
Supply Chain Management (SCM) refers to the act of managing and planning goods & products in an organized behavior, starting from vendor selection to delivering the requested products to customers. Supply Chain Management is a detailed process that entails a wider set of processes including inventory, logistics, procurement, capital, and much more.
Poor management of the supply chain certainly comes with the cost of losing a client or delivering a bad experience. Hence, that’s the main drive why businesses today are shifting their focus towards it more than ever before.
Although it’s not a new concept, the digitization of services around the world contributed to its rise in a way. That, along with the increasing numbers of online services and goods which have led to the dire need to find better managerial methods to ensure goods are requested, observed, and delivered in the best possible manner.
What is Inventory Management?
Inventory Management is part of Supply Chain Management (SCM) and this is where the highlight between both shows. While Supply Chain Management is concerned with managing the whole process from A to Z, Inventory Management on the other hand is concerned with managing the stock specifically.
This includes determining the quantity to order, when to order it, where to get it, when to get it, who’s requesting it, and more to ensure that stock levels are compatible with the demand rates, in addition to getting a stock-out warning if an item runs out or is nearing finish to restock it in advance.
Hence, using inventory software management solutions helps businesses not only manage but also oversee the worst and the best-case scenarios before they happen, enabling them to fine-tune better decisions for the organization and customer.
As a result, this leads to better management of finances inside the organization as the distribution happens correctly and ensures that the right products are distributed to the right address and within the time frame agreed on with no delays.
Why Does it Matter To Have An E-Invoicing System For This?
E-invoicing systems are no longer your ordinary go-to for issuing and receiving E-invoices, or at least that’s what it’s like at InvoiceQ! Today, we have developed our system to give you an all-in-one experience so you’re able to have all that you need in one place.
To manage your inventory better, you have to understand your stock levels and make decisions upon that, But how are you supposed to do that with no solutions that enable you to track and monitor your inventory?
That’s the reason why many organizations revert to using multiple systems to fill this gap. But, guess what? You no longer have to do that because InvoiceQ empowers you with brilliant inventory management solutions. Our system gives you a detailed report of:
– Imported Stock
– Exported Stock
– Damaged Stock
– Performance Reports
These sub-modules give users information that enables them to perform tasks such as:
– Order follow-ups
– Managing externally sourced items better
– Easy registration of new inventory records
– Threshold notice
– Stock-out alert
– Better planning for organizational resources
– Item tracking
– Item availability & stock levels
– Sold items
– Stock location
– Product flow from supplier to customer & vice versa
Finance teams in your organization need a system that provides such detailed information about inventory as it gives them a sense of the overall performance. That’s why utilizing an E-invoicing system like InvoiceQ is more of an investment than a buying decision.
Why So?
Inventory management gives the organization a broader vision of revenue and sales, this can be tracked through the number of stock items in and the number of stock items out. As the number of items in translates into cash outflow while the number of items out translates into revenue.
And the more items out for sale, the more revenue the organization is making. Thus, the goal would be to increase the turnover rate for the stock items in the inventory and decrease the number of the stock items in by selling more than storing. This measurement in financial accounting indicates how much of the stock you have is being sold, therefore, no ambiguous decisions based on guesses.
The goal is to avoid unsold stock and low inventory turnover.
Wrap-Up
Supply Chain Management (SCM) is a broader term and entails different concepts under it, one of which is Inventory Management which serves an essential role for organizations that sell and receive various goods. Inventory management is more about the stock items’ availability and finding ways to ensure they’re available for customers upon request. On the other hand, Supply Chain Management (SCM) manages the whole journey from the point where they’re sent out to the point they’re received and anything in between.
Both Inventory Management and Supply Chain Management (SCM) are crucial if you’re looking to enhance the satisfaction rates and the user experience for clients, and that can be easily achieved through InvoiceQ’s portal that provides direct communication channels between service providers and service requesters.
