Lungisa Inventory Management’s Post

Boosting your Gross Margins With rising costs margins are shrinking, making it more important than ever to maintain healthy margins for sustaining profitability and growth. Here are few strategic steps that can help to drive healthier margins; 1. Renegotiating prices with suppliers - There's always room for negotiation. Leverage your relationships or explore alternative sources that are more affordable. If the buying price is not right your profitability will suffer. 2. Smart pricing strategy - Increase your product prices smartly by understanding your customers' sensitivity to price changes. A deep understanding of customer base will help you adjust prices cautiously without compromising your sales volume. 3. Minimizing Leakages and Wastages - Identify areas of losses and wastages, implement tight controls to reduce these unnecessary costs. 4. Segment Discounting - Identify your customer segments and apply discounts strategically, rather than offering flat discounts across the board. A blanket discount approach isn't effective, especially when your targeted customer base includes users who are not sensitive to price changes. 5. Outsourcing to cost effective markets- Labour costs can be reduced significantly by outsourcing to developing countries that are affordable. Make margin management a top priority in your business strategy. #profitability #businesstips #margins #businessgrowth

Struggling to optimize your gross profit? Let's crack the code with effective COGS planning! Accurate Tracking: Ensure all direct costs are accurately recorded to get a true picture of your COGS. Supplier Negotiations: Regularly review and negotiate with suppliers for better rates and terms. Inventory Management: Optimize inventory levels to avoid overstocking and reduce holding costs. Efficiency Improvements: Streamline production processes to reduce waste and increase efficiency. Cost Analysis: Perform regular cost analysis to identify and eliminate unnecessary expenses. Monitor Trends: Keep an eye on market trends and adjust pricing strategies accordingly. 📊 Why It Matters: Effective COGS and gross profit planning are crucial for maintaining a healthy bottom line and ensuring your business’s long-term sustainability. 👥 Let's Talk: What strategies have you implemented to optimize your COGS and gross profit? Share your insights and experiences in the comments! #COGS #GrossProfit #FinancialPlanning #BusinessGrowth #CostManagement #ProfitOptimization #FinanceHacks #financialanalyst #financialanalysis Shashank Singh 🇮🇳 Aditya Sharma Rishabh Mishra Munna Das Chandeep Chhabra Ankit Bansal Shail Sahu Shakra Shamim Akash Kamerkar Naveen Kumar Adapala Ayan Khan Zain Ul Hassan

Want to boost your profit margins without changing your prices? Start by tackling COGS! Every dollar saved on the production of that sale, goes directly into your net profit margin. Here are just three practical steps (𝘸𝘦 𝘩𝘢𝘷𝘦 20 𝘰𝘵𝘩𝘦𝘳𝘴) you can use to lower COGS: 1️⃣ Negotiate with Suppliers: A simple coffee meeting can lead to options like bulk discounts or seasonal price breaks. Suppliers are often more open to working with you than you might think. They SHOULD be interested in how their services and products can be used even better to help your business grow, and thereby, you will buy more from them. Any supplier not interested in this concept needs a 'swift kick'. (Sorry....be kind Carl) 2️⃣ Evaluate Alternative Suppliers: Sometimes, switching suppliers can mean major savings. Choosing a supplier who offers better pricing can make a noticeable impact. 3️⃣ Optimize Inventory: Avoid over-ordering! Excess inventory can lead to storage costs and even spoilage. Large batches of materials unused for months is money down the drain. Each of these adjustments, while small, can make a real difference in your profit margins over time. Tomorrow we’ll dive into another margin-booster: streamlining operations for efficiency. Small adjustments to COGS = Big impacts on profits! #salesgrowth #strategicplanning #businessmindset #smb #revenuegrowth

Want to boost your profit margins without changing your prices? Start by tackling COGS! Every dollar saved on the production of that sale, goes directly into your net profit margin. Here are just three practical steps (𝘸𝘦 𝘩𝘢𝘷𝘦 20 𝘰𝘵𝘩𝘦𝘳𝘴) you can use to lower COGS: 1️⃣ Negotiate with Suppliers: A simple coffee meeting can lead to options like bulk discounts or seasonal price breaks. Suppliers are often more open to working with you than you might think. They SHOULD be interested in how their services and products can be used even better to help your business grow, and thereby, you will buy more from them. Any supplier not interested in this concept needs a 'swift kick'. (Sorry....be kind Carl) 2️⃣ Evaluate Alternative Suppliers: Sometimes, switching suppliers can mean major savings. Choosing a supplier who offers better pricing can make a noticeable impact. 3️⃣ Optimize Inventory: Avoid over-ordering! Excess inventory can lead to storage costs and even spoilage. Large batches of materials unused for months is money down the drain. Each of these adjustments, while small, can make a real difference in your profit margins over time. Tomorrow we’ll dive into another margin-booster: streamlining operations for efficiency. Small adjustments to COGS = Big impacts on profits! #salesgrowth #strategicplanning #businessmindset #smb #revenuegrowth

Revenue Management is a tool that can be used in many industries or departments if these two conditions apply to your organization: Perishable Inventory: When your inventory is not sold by a certain time, it becomes lost inventory and can no longer be sold during the next business hour. Predictable Demand: When your demand can be predicted. This will allow you to know in advance how much traffic or sales your business or organization will have during a specific period.

Pricing strategies play a crucial role in determining the gross margins and overall profitability of a business. The pricing decisions made by a company can have a significant impact on its financial performance and long-term success. Different pricing strategies can affect gross margins in various ways, ultimately influencing the bottom line. One important aspect to consider is the relationship between pricing and costs. Setting prices too low may attract more customers, but it can also erode gross margins if the costs of production are not covered. On the other hand, pricing products too high may result in lower sales volume, affecting overall profitability. Finding the right balance between pricing and costs is essential for maximizing gross margins. Another factor to consider is the competitive landscape. Pricing strategies need to take into account the pricing strategies of competitors in the market. Setting prices too high compared to competitors may result in lost sales, while pricing products too low may lead to price wars that can impact gross margins negatively. Understanding the competitive environment and adjusting pricing strategies accordingly is crucial for maintaining healthy gross margins. Additionally, pricing strategies should align with the value proposition of the products or services offered. Charging premium prices for high-quality products or services can help improve gross margins by increasing perceived value. Conversely, discounting prices may attract price-sensitive customers but can also lower gross margins if not managed effectively. Overall, pricing strategies have a direct impact on gross margins and overall profitability. It is essential for businesses to carefully analyze their pricing decisions and consider the implications on costs, competition, and value proposition. By implementing pricing strategies that are aligned with the company's goals and market dynamics, businesses can optimize gross margins and enhance profitability. #PricingStrategies #GrossMargins #Profitability #BusinessPerformance 📊

Dealing with inventory delays due to excess stock. How can you keep client expectations in check? Here are some strategies to manage client expectations when dealing with inventory delays due to excess stock: Communicate Proactively 1. Inform clients promptly: Reach out to clients as soon as possible to explain the situation and provide a revised timeline. 2. Be transparent: Share the reason for the delay (excess stock) and the steps being taken to resolve the issue. Set Realistic Expectations 1. Provide a revised delivery date: Offer a specific date or timeframe for when the product will be available. 2. Explain the root cause: Help clients understand that the delay is due to excess stock, which is being addressed. 3. Offer alternatives: If possible, suggest alternative products or solutions that can meet the client's needs sooner. Offer Solutions and Support 1. Prioritize client needs: Identify critical clients or orders and prioritize their fulfillment. 2. Offer compensation or discounts: Consider offering a discount or other form of compensation for the delay. 3. Provide regular updates: Keep clients informed about the progress and any changes to the expected delivery date. Prevent Future Delays 1. Analyze and adjust inventory management: Review inventory management processes to prevent similar delays in the future. 2. Implement a just-in-time (JIT) inventory system: Consider adopting a JIT system to minimize excess stock and reduce the risk of delays. 3. Improve communication with suppliers: Strengthen relationships with suppliers to ensure timely deliveries and minimize stockouts. By following these strategies, you can effectively manage client expectations and maintain a positive relationship despite inventory delays due to excess stock. #MTJFoundation #InventoryManagement #SupplyChainManagment #StoreMTJFoundation

Did you know that outdated inventory management can cost businesses up to 30% in lost revenue annually?🧐 Discover the hidden costs of outdated inventory: 1) Overstock and Stockouts: Inaccurate tracking leads to excess stock or missed sales opportunities due to stockouts. 2) Increased Holding Costs: Storing unsold inventory ties up capital and incurs additional storage expenses. 3) Reduced Efficiency: Manual inventory processes slow down operations and increase labor costs. 4) Lost Sales: Inadequate inventory visibility can result in lost sales and dissatisfied customers. 5) Waste and Obsolescence: Perishable and obsolete items accumulate, leading to waste and financial losses. Upgrade your inventory management with us to avoid these hidden costs and boost your bottom line! #inventorymanagement #businessefficiency #costsaving #techbusiness #retailinnovation #b2b

Did you know that outdated inventory management can cost businesses up to 30% in lost revenue annually?🧐 Discover the hidden costs of outdated inventory: 1) Overstock and Stockouts: Inaccurate tracking leads to excess stock or missed sales opportunities due to stockouts. 2) Increased Holding Costs: Storing unsold inventory ties up capital and incurs additional storage expenses. 3) Reduced Efficiency: Manual inventory processes slow down operations and increase labor costs. 4) Lost Sales: Inadequate inventory visibility can result in lost sales and dissatisfied customers. 5) Waste and Obsolescence: Perishable and obsolete items accumulate, leading to waste and financial losses. Upgrade your inventory management with us to avoid these hidden costs and boost your bottom line! #inventorymanagement #businessefficiency #costsaving #techbusiness #retailinnovation #b2b

Here's some thoughts about inventory. Because some places I visit, they don't do inventory right: 1. The right amount of inventory is exactly what you need to feed production. Not more, not less. 2. Excess inventory takes up rack space. No business ever has too much rack space, so it's a scarce commodity. 3. Every item in inventory cost some $$s. That's $$s you can't use to pay wages, the tax man, your suppliers, your capex, your shareholders. 4. Inventory gets pilfered. Less inventory means less 'shrinkage.' 5. If your production changes, your inventory requirements change. Some items are new, some the same, some become obsolete. Pay close attention to item 1 above. That fixes items 2-5. Here's how: 1. Do regular stocktakes. Know what's there, down to the last box of screws. If there's 'shrinkage,' find out why. 2. Value it accurately, at the lesser of cost or net realisable value (it's a requirement under IIASB 102). Why? Because inventory is a current asset and in SHTF moments, you want to know what you can sell it for. 3. Keep production, inventory and lead times in sync. Don't buy more than you need because some supplier offers a special deal (they're just offloading their inventory problems onto you). 4. Sell off obsolete stock. Turn it back into $$s. #management #inventory #stock #cashflow