To ensure financial operations working properly, a successful working capital ma

Question

To ensure financial operations working properly, a successful working capital management helps financial chiefs take care of financing and management of Current Assets and Current Liabilities issues that occur daily because both accounts involved major trade activities. Some big firms create a department to specifically take care of working capital issues. Typical examples of short-term obligations are salaries, payroll, taxes and vendor invoices. To achieve the goal, a good working capital management system is absolutely necessary; in fact, an effective working capital management also helps enhance financial efficiency and protect credit rating of a firm. To maintain a proper liquidity position, any company shall focus on managing short-term issues including inventory management as you presented. Product-based companies must pay attention to liquidity because simply, funds are tied up with inventory and incur various type of costs such as inventory holding cost and opportunity cost of tied up funds. Everyone, based on your research and study - What are recommended inventory management system for product-based companies?

Explanation / Answer

Inventory management software is a computer-based system for tracking inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to avoid product overstock and outages. It is a tool for organizing inventory data that before was generally stored in hard-copy form or in spreadsheets.

Unleashed Software may be what you are looking for. It provides you with the ability to purchase in raw materials and compile them into finished products, by using the software’s Production feature and all on the cloud.

You can create and manage Bill of Materials (BOMs), first listing components needed, then quantities and estimated margin of error. This also gives you the total cost of the final product based on the cost of all the components used. Once you have the BOM you can create assemblies – these allocate stock to the build – or have the product set to auto-assemble. Unleashed’s Auto-assemble feature means you can sell an assembled product without creating a manual assembly, as long as you have enough of the component products on hand.

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