“Profitability is coming from productivity, efficiency, management, austerity, and the way to manage the business”
— Carlos Slim
In the last blog we explored how Seed Growers and Distributors face challenges which affect productivity and the benefits of having fewer systems to look after. We know that every Seed growing company is different, however some of the principles of running any business efficiently are the same.
When accurate stock levels are not available this gives rise to uncertainty about the ability to fulfil demands and knowing what is in stock. This directly affects profitability and sales potential. Often accurate stock positions are only corrected at the year-end stocktake and also when stock is deducted from the system at invoice stage (which may be a couple of weeks later).
Having all your data in one system means that everyone in the business will be able to access up to date stock information at any time. It means that stock is fully traceable from the minute a product is identified to the minute it is sold and shipped.
The complexities of Seed stock
Seed stock is rather complex, so being able to trace and track every component, from the field to the customer, is critical for success. Seed lots are invariably subject to treatments and mixes as part of their journey, so retaining this information as part of the stock is very important.
If you sell your products on line, then maintaining good control of stock is even more important. If the information is in different systems, it is difficult to get an accurate picture of what has been sold, where and to whom. This can often lead to disappointed customers and negatively impacts profitability.
The benefits of having ‘real time’ stock information in one system:
- The sales to shipment process is more efficient which means you can sell more for less cost, and be more profitable.
- Stock levels are accurate, up to date in ‘real time’ and can be seen by every department.
- It is easy to plan stock as it can be based on sales demand.
- Stock will be easy to trace, despite location.
- Up to date accurate stock and seed lot information can be viewed in all their locations and warehouses, speeding up delivery.
- Reports can be run which show detailed stock information and can be seen and sorted by varieties, species, grades and treatments.
- Adding bar code devices to the process enhances profitability and productivity even further. Stock can be found quicker and its movements traced in real time.
- All departments will be able to see what stock and lots are available and where they are located without having to physically check.
- Turnover is increased from having a front end sales system which ‘knows’ what is being sold, irrespective of source (on-line order, telephone order, sales field order etc.) and with all stock being controlled from one central system.
To learn more about how you can manage your Seed stock perfectly with a single system, click here.