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Inventory Control H
Inventory Control H
ON
“Inventory Control”
SESSION 2021-2022
DEPARTMENT OF MANAGEMENT
guidance of Dr. Shivangee Tiwari (Assistant Professor) (BBD ITM, Lucknow) and
Administration.
I would like to express my special thanks of gratitude to our H.O.D. Dr. Meetu
Pandey who gave me the golden opportunity to do this wonderful opportunity to pen
down a innovative business plan and also helped me in doing a lot of Research and I
their throughout guidance and constant supervision as well as for providing necessary
information regarding the project & also for their support in completing the project.
I would like to express my gratitude towards my parents & my college mates for their
However, it would not have been possible without the kind support and help of many
individuals and organizations. I would like to extend my sincere thanks to all of them
stressful environment. Although I am student of MBA It is a two year full time degree
courses. So far this training is scheduled for first semester syllabi of AKTU i.e. (Mini
Thus study will provided me a better opportunity to survive in cut throat competition
with a prosperous existence. I have tried my best to gain out of well framed
circumstances & with the help of experienced personnel who helped me out so for
become possible to them. As being a very confidential functioning many things are
there which can’t be known but on the basis of gathered information and certain hints,
the project has been formed. It may have something missing but I have tried to present
all things what I have received. Although this report has been got checked by different
personnel but after that if there is some shortcomings I expect it to be rectified. So the
whole study bifurcated in different parts. Certain observations & suggestions also
1. Introduction
2. Objective of innovation
3. Need of innovation
4. Source of idea
7. Technical feasibility
8. Market analysis
11. Limitations
13. Conclusion
14. Bibliography
INTRODUCTION
If you need to keep track of your stock of any kind of items - this application can help
you to do it.
warehouse. A small shop can use it for sales and purchases management.
Even big companies use it mostly as a data collection terminal to exchange with back-
Inventory management is all about having the right items on hand at the right time to
meet customer demand while controlling costs and minimizing waste and loss.
Companies with best-in-class inventory management practices don’t guess how much
stock to buy, and they keep a steady flow of raw materials, work-in-progress items
distribution channels.
But no one stays best in class by resting on their laurels. Companies need to stay on
top of trends in inventory management, understand the drivers behind them and
determine whether it makes sense to be an early adopter — or let someone else work
Inventory management is the process of acquiring, storing and selling or using the
four main types of inventory: raw materials; works in progress (WIP); finished goods;
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4 Main Inventory Types Explained
Raw materials: This category includes both nonperishable materials, such as sand,
wood or wool, or raw fruits, vegetables, grains or meats used to make processed
foods.
Work in progress: WIP are goods that are in progress but not yet ready to sell, such
Finished goods: Finished goods are ready-to-sell items, such as a window, suit coat
or loaf of bread. Finished goods may be either intermediate items headed for another
Maintenance, repair and operations: MRO items are items needed to keep the
production line up and running, like tools or spare parts, or consumables to get
manufacturing, retail and food service — must avoid tying up more cash in inventory
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than necessary while minimizing waste and shrinkage. Successful companies
An inventory model is the system a business uses to determine the optimal way to
produce its goods. The inventory model or models in use govern areas including, but
not limited to, how frequently to order raw materials or MRO stock with the goal of
not having too much or too little on hand, deciding how best to track and store items
awaiting production or transit and how to fill customer orders quicky and with high
accuracy. Factors when selecting a model include the industry, any special
considerations around the production lifecycle and which model leaders think will
costs and deliver quality goods to customers on time and is first step in effective
inventory management. That's because each model has a specific technique to help
leaders determine how much stock to have on hand. For instance, companies with
more complex manufacturing and supply chain processes use methods such as just-in-
time (JIT) and materials requirement planning (MRP) to balance inventory. Popular
models like economic order quantity (EOQ), economic production quantity (EPQ)
While smaller businesses tend to track inventory manually using spreadsheets, larger
corporations benefit from using either specialized enterprise resource planning (ERP)
Once a company has settled on a model, it’s time to seek a competitive advantage.
And that requires some out-of-the-box thinking, advanced planning and leveraging
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Top 14 Inventory Management Trends
what business you’re in. Many of these trends are focused on helping companies
assess where to invest resources, while others will get you more buy-in from
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1. AGVs and AMRs
looking for ways to work more efficiently. Automated guided vehicles (AGVs) and
automated mobile robots (AMRs) are tools to help warehouse operators collect
products from decks and pallets. While AGVs have been around for a while, AMRs
AGVs rely on magnetic strips or wires to follow fixed paths through a warehouse,
meaning that they aren’t great fits for facilities that change their floorplans or have a
lot of people moving around. AMRs are among a new class of ―collaborative robots,‖
and they don't need to rely on fixed routes to navigate a space because they include
smart sensors, like those used in self-driving vehicles. They can even be ―paired‖ with
a human worker.
Both types of vehicles reduce the time it takes to move items around the warehouse
and free up human staff for other tasks to help fulfill orders faster. Because AMRs
AGVs, they can be more cost effective than you might think and relatively easy to put
to work.
2. Artificial intelligence
intelligence (AI) and machine learning (ML) capabilities work hand-in-hand with
those IIoT initiatives. The problem is that a lot of the data manufacturers and retailers
collect now isn’t structured to fit neatly in a spreadsheet: Think product images,
videos shot as those AMRs move around warehouses, various SKU formats and the
data produced by all manner of sensors and scanners. Machine learning could be
employed to spot out defective products or packaging so that customers only get
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quality items. And, the nature of inventory means that your data set is continuously
3. Cloud-based solutions
The ability to track inventory in real-time can be a game-changer for any business.
Because cloud-based solutions allow all of your company’s data to be stored securely
and centrally and accessed from anywhere, decision-makers can more quickly
respond to and solve inventory issues. And, cloud, like software as a service, delivers
other benefits over on-premises applications: Lower upfront costs since there’s no
security and resilience than most organizations can build on their own.
simplifies adding new warehouse locations, even doing pop-up fulfillment centers in
stores. Centralization enables a GPS location project, where you track on-the-move
pallets, containers or delivery vehicles in real time to predict when items will arrive at
their destinations. That data can then be mined to find the reasons for recurring
delays.
on-premises, should integrate with your finance and accounting and order
management systems and allow for granular tracking of inventory down to the SKU
Distributing inventory across multiple warehouses can reduce transportation costs and
speed up delivery times — if you can put the right products in the right places and
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Success requires data analysis to see where orders are coming from versus where
stock is located, the flexibility to set up distribution centers in the right sites based on
In most cases, when a company is managing more, smaller warehouses versus a few
5. Predictive picking
Again, this trend depends on data analysis — in this case, using unstructured data to
software can direct businesses to initiate fulfillments before an order has even been
weather and seasonality to predict customer orders with a high degree of accuracy.
If that sounds complicated, it is. Success at scale requires a lot of data and powerful
analytics tools. But most manufacturers and retailers can start down the predictive
path by analyzing historical data to spot demand surges for specific products, beyond
the obvious like candy in late October or pool chemicals in May. Then, they can use
human intelligence to figure out why there was a spike and whether it’s likely to
recur. If so, the company can have enough stock on hand and design a fulfillment
process that minimizes shipping times and touches. And that data can itself eventually
Which trends make sense for your business? That depends on your company's
strategic objectives, budget, size and appetite for technology. Here are some points to
consider when evaluating a trend. Weigh the cost/benefit against other long-,
medium- and short-term projects on the table, and ensure there is an executive
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Warehouse Project Cost/Benefit Analysis Template
Proposed project
Executive sponsor
Locations/departments affected
Budget
Costs, estimate
Equipment, capital
Training
IT staff or contractor
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Improved inventory accuracy
Fewer stockouts
7. Personalization
buying habits, so you can stock and suggest relevant products and ensure a seamless
companies to tap into personalization data to boost sales. For example, a retailer may
suggest additional products to customers browsing online or reaching check out, while
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Behavioral data gleaned from your website or a customer’s order history: first-time
vs. repeat buyer, content consumed, changes in buying quantity or SKU diversity.
Contextual data such as time of day, week or month customer visits your site or
8. Creative financing
Especially for new manufacturers, using creative financing to pay for inventory can
On the smaller side, think about sites like Kickstarter that enable ―pre-tail‖ sales,
where a maker can rack up retail revenue before the product is produced. These sales
Larger manufacturers might look beyond a typical inventory loan, where the
inventory itself is the collateral. Before looking for new financing, see if you
can reduce your invoice carrying costs. AR loans or factoring, also called invoice
factoring, entails either borrowing against your accounts receivables or selling your
Companies with stock that’s not moving may also take steps to boost liquidity,
bundling less popular items with strong sellers. Or, consider more flexible rental
options instead of the traditional own or lease model — there are significant
business.
9. Automation
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tasks, you free up employees to focus on more valuable projects, including those that
For example, retail automation can include automatically updating stock counts when
overselling, and the customer doesn’t have to wait to confirm an order. Other
around and out of warehouses with minimal human involvement. It takes a dual focus
management system gathering information on the number of a given SKU that will
ship in the next 24 hours and directing a worker to pick those items all at once to
avoid repeat trips. More advanced warehouse automation could use AI, cameras and
sensors to help an AMR navigate a warehouse and compile an order without human
help.
10. 3PL
is outsourced to a third party. These services may help businesses reach more
customers or operate more efficiently without incurring the costs that come with
logistics process or select operations. The key to success with 3PL is to connect all
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production sites, including the manufacturer and 3PL provider, such that they operate
More ecommerce means that returns, aka the reverse supply chain, represent a
growing drain on profits. Contracting with a 3PL for returns handing could reduce
costs because these firms tend to deliver economies of scale, including better rates
with carriers, and processes tuned to execute returns as inexpensively and efficiently
as possible.
shipping — and some not as common, as is the case when, for example, the line
between retail location and warehouse blurs. For example, some big box stores have
converted unused space to drop-ship locations. While this uses space efficiently, retail
We’ve also seen retailers partner with those 3PLs to store inventory and ship orders
shipping. Drop shipping, where a retailer never takes possession of stock but pays a
manufacturer to send items direct to customers, can also have a hybrid flavor when a
retailer chooses to stock a small number of popular drop-shipped items so it can offer
businesses can offer those extra SKUs and lower their costs.
It seems simple: Align your channels so that a customer can look online to see
whether a given item is available in a nearby physical location, make the purchase
then walk into the store and pick up the item. Oh, and make sure the cost of the item
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In reality, omni-channel inventory control requires coordination among store,
inventory and ensure price and discount or sale parity. A customer who purchases an
item for $50 online, picks it up then decides to walk around the store and sees the
same item on sale for $39.99 is likely to get right back in line for a price adjustment,
businesses need to make sure they have a connected supply chain, a near-real-time
highly accurate order fulfillment, data analytics and tracking and distribution centers
13. Blockchain
Most people think of blockchain as the underpinning for digital currencies like
Bitcoin. But that’s just the beginning. A blockchain is simply a database that stores
management and control. Deloitte insists that 2020 marked the start of the blockchain
decade and cites some innovative use cases that illustrate the possibilities, like firms
using blockchain to secure AP loans. The top industry using blockchain now is life
sciences and healthcare, often for clinical trials and to digitize health records. In the
supply chain, Walmart and Nestle are among the food retailers that use the IBM Food
Trust blockchain to remove uncertainty around food safety and freshness and add
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Companies looking to use blockchain to provide certainty and insight into their supply
chains will likely need to sign on with a consortium that works within their industries.
takes an egalitarian approach to participants and has broad adoption within your
market.
A common thread with many of these trends is use of real-time data analytics to make
decisions, create a more customer-centric business model and minimize costs while
boosting efficiency.
better demand forecasts, move toward just-in-time inventory replenishment and get
and provide near-real-time updates on where supplies or shipments are and when
It's not enough to have access to large amounts of data, though. Businesses need to
view it as a resource and use it to stay competitive. Best practices to become more
1. Collect data even if you’re not sure how you’ll use it now. Whether sensor
data from IoT devices or images from a warehouse robot fleet, the more inputs you
provide, the more accurate your eventual predictive analytics and reporting become.
2. Opt for interconnected software and data sources. Siloes are bad for
analytics, so look for systems that can interconnect with your finance and accounting,
ERP, order and customer management and other core software. Custom integrations
are expensive.
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3. Insist that decisions are based on data, with reports to back up assertions.
Select the metrics, like logistics KPIs or supply chain KPIs, that matter to your
All product companies can benefit from a deep dive into inventory management and
controls.
4. Take action based on insights. Teams that work to analyze data and issue
reports but never see any movement based on their efforts will become discouraged.
For manufacturers, even rudimentary data analytics can reveal suppliers that often fall
layouts. Add some machine learning and you can start taking predictive actions.
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OBJECTIVE OF THE INNOVATION
and awareness to the customers. I can fulfill this by ensuring those customers’
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NEED OF INNOVATION
Your goods are incredibly valuable. You can’t just acquire inventory. You have to
safeguard, store, and manage it. All of these activities cost money.
The cost is especially steep if you manage your inventory poorly. 50% of US retail
decision makers say inventory misjudgments kept them from more full-price sales. It
comes as no surprise then that supply chain managers are especially hungry for cost-
As global supply chains and rising customer expectations add strain to supply chains,
innovation, in areas like inventory management, will swoop in to save the day. That
said, business owners must pay attention to these inventory management trends.
Snooze on these trends and you may wake up to find your competitors thriving with
Of course, staying aware of inventory management trends takes more than a little light
reading. You must understand the drivers behind these trends.Then consider how
An enterprise with ―unclean‖ data, for example, can’t take use fancy data analytics
tools the way a competitor with excellent data hygiene practices can. Staying on top
Every business can innovate, but not every business starts innovating the right away.
Some lack the pre-conditions for success (e.g. data hygiene, digitization), the talent,
or the buy-in from stakeholders. At times, it’s the age old issue of a tight budget.
Does this mean managers should throw up their hands and hope for the best?
becomes more urgent. If you’re going to build your technology roadmap, you’ll need
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a clear picture of the current landscape to assess where to invest your limited
resources.
state and the technology, talent, people, and processes you’ll need to get there. In
your business.
short-, medium-, and long-term. Focus too much on the short term and you
risk future obsolescence. Focus too much on the long term, and you’ll reduce
the profits that fund future projects. Look ahead and think about what
20, or 30 years.
your business success? Asking these questions will help you prioritize your
activities and build a useful roadmap that secures buy in from various
stakeholders.
4. Calculate the cost: It’s important to detail the anticipated capital requirements
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5. Set timelines for short-, medium-, and long-term projects: In order to go
innovation projects will fall on the backburner while everyone focuses on their
Imagine a warehouse that picks products before customers even hit ―buy‖. According
advanced systems use unstructured data to recognize patterns and interdepencies and
predict behavior. They can effectively initiate the order fulfillment process before the
Today, variables like weather, season, and marketing campaigns can determine what’s
like humans. Many tasks are simply too ―human‖ for robots to mimic.
Ocado, a British online supermarket, uses robots to navigate its warehouses and
manage its inventory with surprising efficiency. However, there are some products,
like oranges, that prove too difficult for its machinery to handle.
Even the most aggressive human understands the amount of pressure required to hold
an orange without turning it to juice. A robot doesn’t. To address this, one startup
builds robots that uses AI to watch and learn from human order pickers.
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Evidently, there’s a lot of experimentation concerning AI. Should any warehouse
operator dump all their money into AI technology? No. But it’s certainly worthwhile
The customer leaves with the item. Therefore, the product is instantly in their
On the other hand, online shopping introduces a delay. Sure, when a customer
purchases an item online, it’s technically theirs.For all intents and purposes though,
the item is still part of your inventory and therefore tying up capital.
following features:
management process, it’s easy to get inaccurate numbers. For instance, failing to
account for online sales may inflate your count and lead to stockouts.
opportunities for customers to find your products. Fulfilling this can be a challenge.
Adding a distribution center closer to your customers shortens your fulfillment times
and reduces your shipping costs. Moreover, you can easily address stockouts by
management software use order routing and shipment automation rules to decide
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Connected systems that provide a “single source of truth”: With inventory spread
across multiple locations and sales conducted in-store, online, and via mobile,
conflicting data becomes an issue. Which numbers should you trust? An integrated
for goods and services from the comfort of their bed. Convincing people to get up, get
dressed, and get down to a shopping mall takes a lot more than the promise of a new
outfit.
In response to this shift, brands are shifting to ―experiential‖ retail. They want to turn
shopping into an experience much like going to the movies or eating at a restaurant.
To meet this objective, they open ―concept stores‖ designed to draw customers in and
These companies accept the fact that U.S. consumers spend over $500 billion a year
with online merchants, so they’ve chosen to reimagine the purpose of their brick-and-
mortar shops.
This presents new inventory management questions for brands. Should they go the
way of Bonobos, the online men’s retailer which only stocks one of each item and
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Or should they take ModCloth’s approach to a women’s fashion concept store and
keep a few of its most popular items in store for customers who want to go home with
The retail industry’s move towards experiential retail is an important trend for brands,
Ecommerce personalization extends far beyond knowing your customer’s name. It’s
about knowing your customer’s buying habits, helping them find new products, and
the recommendation algorithm accounts for 35% of the online retailer’s sales. Brands
that use customer information to suggest additional products can significantly boost
their sales.
inventory levels is already a difficult balancing act between preventing stock outs and
reducing carrying costs by defining safety stock quantity, inventory reorder points,
inventory turnover ratio, and inventory ABC analysis . Throw in a new variable like a
Real-time or streaming analytics is one way for retailers to facilitate this shift towards
just accurate demand forecasting and stock replenishment. They can also:
Obtain greater visibility over where raw, semi-completed, and completed goods exist
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Monitor fluctuations in supply costs and recalculate stock levels accordingly
Minimize inventory costs by identifying which suppliers routinely fall short of their
Personalization drives sales, increases brand loyalty, and elevates the customer
experience. That said, this strategy only works if you can deliver on said goods once
required to oversee it. Companies are quickly eliminating manual processes and
forecast, automation to pick stock, and RFID scanners to gain visibility over
inventory.
Supply chain professionals must know how all of these elements work together to
options. In some cases, these supplier partners move away from the traditional own or
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In fact, some software providers are taking a proactive approach by forming strategic
By working together, they come up with cost saving opportunities that they can pass
In the inventory management world, where there are endless solutions managers can
adopt, from RFID tags and scanners to pick-to-light functionality, these financing
options provide businesses with a cost effective way to execute on their strategic
Consumers return roughly 20-30% of the goods they buy online while they only
return 8.89% of goods bought at brick-and-mortar stores. Add this to the rising
popularity of online shopping and the increasing number of individual packages rather
than bulk packages, and you have a growing inventory management nightmare.
There’s no getting around this reality. About 49%of retailers provide free return
shipping. If consumers see that you don’t offer this, 79% say they won’t bother
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shopping through your online store at all. With this in mind, how can retailers manage
A robust WMS System helps handle this. Keep in mind that your WMS needs to do
more than just help workers pick, pack, and ship. The WMS must also help
For example, an undamaged returned product should move back into inventory where
it can be sold to someone else. The right return policy with the help of the right
Excellent inventory management keeps your costs low, your margins high, and your
goods protected. Of course, your inventory processes must meet current trends in
becomes an immersive experience. The way you handle your inventory must change
as well.
technologies, your company can readily adopt the right warehouse and inventory
management solutions or 3PL Solution to get your goods from the warehouse to your
customers.
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SOURCE OF IDEA
business, innovation often results when ideas are applied by the company in order to
• Incongruities....
• Process Needs....
• Demographic Changes....
• Changes in Perception....
• New Knowledge.
• Innovation is based upon bright ideas. The human mind thinks of new things
that can better fulfill an existing need. In this process he thinks of filling his needs in
new ways and by devising new products and mechanisms. Demographics: Our
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ADVANTAGES
1. Higher Productivity
An organized and systematic inventory management process means more gets done in
less time. Using software to manage inventory will cut down on time it takes to
process, audit, and track your merchandise. With one interface, you can check the
stock amounts on all your inventory, track what’s selling and what’s not, find vendor
information, and connect to payment apps for invoicing and purchase orders.
2. Better Profitability
Gain business insights with inventory tracking software to see what goods are popular
this period and what goods can go next period. With an eye on the inventory and
tracking reports illustrating what is selling well or poorly- investing more in the stock
Successful inventory management means knowing and using that knowledge to get
the most out of the market and merchandise. Inventory software provides you with
this information to make decisions that will net you a higher income.
associated costs, using inventory management software to save time. With clear
visibility of the stock movement, you’ll always know the status of your inventory for
Inventory tracking automatically updates the quantities on hand when buying and
selling products in real-time for quicker processing and selling times. The software
can also help companies with over or understocking ensuring there is never too much
inventory to move.
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4. Reduces Aged Inventory and Deadstock
Sort your inventory by date to know which orders have come in first, and check the
quantity on hand to determine how much you need to sell. Knowing what goods are
going out of date soon, especially for perishable inventories, means selling aged
inventory before it becomes deadstock and loses your company money. Keeping up to
date on out-of-date products will help your business reduce wastage and repurpose
ageing inventory to save money. Dealing with such stock before it goes bad is one of
The right software can automate inventory management systems for your business to
increase count accuracy and revenue while decreasing human error and costly
mistakes. Your employees won’t have to waste time counting and recounting stock
No need to run to the back to check and count specific stock levels. Instead, flip open
your phone or check your tablet screen and quickly reference accurate and precise
information—gain calculations and expense tracking without human error for fast and
Providing customers with what they want, when they want it, is a massive part of
customer satisfaction. Your business can keep the popular stock in store thanks to the
automatic low stock alerts inventory software will send directly to your phone. View
the quantities on hand and quickly order more with all your vendor information in one
spot.
Keeping sought-after products in stock and on the shelves can also turn one-time
buyers into loyal customers. They know you’ll have what they need, and that makes
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them appreciative of your services, returning, again and again, to buy from your
business. Therefore, inventory management software can help you retain customers
Inventory control software helps businesses prepare for various events, such as a
stock-out, that affect the supply and demand of your goods. A stock-out happens
when there is an unexpected demand for a specific stock, causing the product to sell
out. Using inventory tracking software can help your business prepare for these
eventualities.
Low stock alerts, real-time inventory valuation, and automatic quantity updates are all
features that will help you adjust to the supply and demand of the market and your
customers.
inventory is no exception. Inventory software can run reports to calculate the total
sales, total taxes, and other pertinent financial information, like real-time inventory
valuation, to help you keep track of your inventory costs and revenue.
These inventory and expense reports will hold your business in good stead when it
comes to the auditing and accounting aspects of your inventory. Cross-reference your
stock with your financial information to ensure the two line up accordingly when it
comes time for your next inventory audit. Get the most money out of the least amount
of inventory.
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COMPETITORS ANALYSIS
4. Take a look at your competitors' pricing, as well as any perks they offer.
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SWOT analysis — strengths, weaknesses,
opportunities, threats —
It is something many MBA students learn. Unfortunately, businesses frequently treat
SWOT analysis like geometry — one of those things you have to learn but will never
use again. But SWOT analysis offers a concrete, real-world audit of a company and a
While strengths and weaknesses are internal, they are measured on a comparative
the expense of another company in your industry. Likewise, threats come from the
necessity.
STRENGTH:- No Competitors
Using SWOT analysis on a regular basis, perhaps once or twice a year, will give you a
broad overview of ecommerce industry trends, show you where you stand in relation
to your competitors, and provide insights into mitigating your weaknesses and
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TECHNICAL FEASIBILITY
A technical feasibility study assesses the details of how you intend to deliver a
business will be located, and the technology that will be necessary to bring all this
together. It's the logistical or tactical plan of how your business will produce, store,
A technical feasibility study is an excellent tool for both troubleshooting and long-
term planning. It can serve as a flowchart of how your products and services evolve
It's the logistical or tactical plan of how your business will produce, store, deliver, and
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MARKET ANALYSIS
into the size of the market both in volume and in value, the various customer
segments and buying patterns, the competition, and the economic environment in
The objectives of the market analysis section of a business plan are to show to
investors that:
Segmentation helps marketers to be more efficient in terms of time, money and other
They gain a better understanding of customer's needs and wants and therefore can
One technique used to identify a target market is market segmentation. The five basic
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POSITIONING OF THE BUSINESS IN MARKET
This is created through the use of promotion, price, place and product.
There are five main strategies upon which businesses can base their positioning.
• Positioning based on product characteristics....
• Positioning based on price....
• Positioning based on quality or luxury....
• Positioning based on product use or application....
Positioning based on competition. Types of positioning in marketing
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COSTING AND PRICING OF THE SERVICE
Many service-based businesses struggle to come up with a fair and profitable pricing
strategy. Unlike product pricing, you can’t exactly quantify all the costs that go into
providing a service.
The expenses that go into providing a service are more subjective than the expenses
that go into making a product. How much you charge customers doesn’t always
In service industries, finding a target profit margin is not as simple. You don’t have an
original price to reference. Instead, your pricing formula for services should account
for the intangible aspects of running your business, such as time and value.
that is scalable yet flexible enough to solve our customers’ problems. Offering a
scalable, one-size-fits-all price can turn potential customers off because their needs
are typically not like those of your countless other customers. At the same time,
offering 100% custom pricing can limit growth because of the time required to quote
Because there is not a set-in-stone method for pricing services, you have some
flexibility. Use the following six steps to learn how to price a service:
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1. Calculate your costs
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LIMITATIONS
The following are some of the factors which put a limit on the growth of a business:
If increased supplies of trained labour are not available, the growth of a business will
be automatically checked.
In the same way, if fresh capital cannot be raised, expansion stops. But these are not
insurmountable obstacles.
to increase the size of the business. The nature of demand is the most
importantlimitingfactor.Italmostsettlesthematter.Ifindividualtasteshavetobe satisfied,
the manager. A point is reached in the expansion of a business beyond which it is not
possible for the manager to control it efficiently. There is a limit to what a man can
successfully manage. Beyond that point, supervision will become lax, materials will be
wasted and machinery mishandled. Cost will over take profits, and, in the end, the
profits may vanish. The limit is reached when the marginal revenue is equal to the
marginal cost.
question. They require close personal supervision, e.g., jewellery-making and tailoring.
Or, there are industries where there is not much scope for the use of
Bulky articles like bricks can only be made on a small scale, for it will not pay to carry
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5. Operation of the Law of Diminishing Returns: It happens sometimes that the
expansion of an industry leads to increasing costs and the returns are less than
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CONCLUSION
The company's management is confident that The Company can achieve its
addition, The Companies' management has carefully considered its market, potential
customer base, and its ability to grow its sales average to capture market share.
The Company has the potential to become a highly regarded resource in local,
careful development of its products coupled with strategic partnerships with some of
the industry's leaders, and the company's profitable revenue model, The Company has
For The Company to achieve status as an industry leader, it must secure initial capital.
This capital will be used for start-up costs, to establish a reputable storefront, and to
The Company will be able to achieve operational success for many years to come.
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BIBLIOGRAPHY
https://www.brightpearl.com/inventory-management-system/inventory-control
https://www.fishbowlinventory.com/solutions/inventory-control
https://en.wikipedia.org/wiki/Inventory_control
https://www.netsuite.com/portal/resource/articles/inventory-
management/what-are-inventory-management-controls.shtml
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