Cost of goods sold and how to calculate it

RESOURCE CENTER:

 

Product Category Sold Yes/No Platforms & apps Yes/No Ideas & tools for Yes/No Written for Yes/No
Beauty & cosmetics No Amazon No Demand planning Yes Accountants & bookkeepers Yes
Electronics No BigCommerce No Fulfillment/3PLs No Agencies & experts No
Fashion & apparel No Magento No Marketing & growth Yes Brands No
Food & beverage No QuickBooks No Selling to retailers/EDI No Ecommerce – first retailers Yes
Furniture & home goods No ShipStation No Software training No Manufacturers No
General retail No Shopify No Successful implementations No Retailers Yes
Sports & equipment No WooCommerce No Supply chain resilience No System integrators No
Xero No System audits & optimization No Virtual CFOs/accountants No
Technology planning Yes Wholesale / B2B No

Cost Of Goods Sold (COGS) is a common accounting term or simply called COGS when you meet with your accountant or at a corporate meeting.

If you’ve ever wondered what it is and why it is so important then this article is for you.

Let’s first understand the term cost of goods sold.

What is the cost of goods sold?

COGS is the value of the inventory that has been sold by a business.

It is only recognized upon sale of inventory and is reported in the financial period in which those sales occur.

The value of inventory is the total of the direct cost of the products making up that inventory, which has either been produced or purchased by a company for resale. It includes additional charges directly related to preparing products ready for sale, like packaging and delivery charges. However, it excludes indirect expenses such as sales & marketing.

Therefore, COGS equal the direct cost related to the production of or purchase of products sold.

Keep in mind that the value of inventory on hand is considered an asset until the inventory is sold.

Why is it important to calculate the cost of COGS?

The primary motive of starting any business is to earn a profit. A business can ensure that it earns a profit by knowing the exact income and expenses incurred to sell its products.

COGS inform a business about all the direct expenditures incurred in getting products ready for sale. Therefore, COGS are an important part of the business decision making process.

Here are some of the benefits of calculating COGS:

1.   Helps create a pricing strategy

Firstly, your selling price can be determined by knowing the total direct costs you have incurred in producing or procuring products. Once you know these costs, you will be in a better position to judge the price at which to sell products so that you can cover your indirect expenses and also earn a profit from the sale.

Knowing COGS helps you determine how much of a profit margin you can keep on the products you sell.

2.   Helps determine the total expenses incurred in selling products

Your profit and loss statement needs to list all your income and expenditures. By taking the direct costs you have spent in acquiring stock, you can arrive at the total expenses incurred by including other indirect expenses such as overhead costs like sales and marketing.

3.   Compare the market value of your product with your competitors

Determining profit margin by only considering direct costs incurred is an incomplete picture. Chances are that your prices may be higher than your competitors in the market. In such a situation, fewer customers will purchase your products and you will incur a loss. If your prices are lower than your competitors, then you can still incur a loss since your low profit margin might not cover your indirect expenses.

COGS helps you to sell your product at a competitive price, grow sales and by extension, earn profits.

Now that you know the importance of calculating COGS, let’s learn the formula to calculate COGS.

How to calculate COGS

Here’s the formula to derive COGS:

COGS = Beginning Inventory + Purchases made during the period – Ending Inventory

To calculate the COGS for a reporting period, start with the value of the beginning inventory. If additional inventory was added during the reporting period, be sure to add the value of any new inventory that is produced or purchased to the value of the existing stock. Now, subtract the value of  ending inventory from COGS sold for that reporting period.

Note, that this is a basic example and does not take into account items like returns, discounts, obsolete stock, and the inventory valuation method used.

Example of COGS

Let’s assume that company X uses the calendar year to record their inventory. The beginning inventory value was recorded on the 1st of January and the ending inventory value was recorded on 31st of December.

The beginning inventory value was $20,000. During the year, the retailer realized that the business would sell more than the inventory received earlier in the year, so additional inventory worth $7,000. was purchased. At the end of the calendar year, the ending inventory value was worth $4,000.

Now, let’s work out the COGS for the entire year by using the formula.

COGS = Beginning Inventory + Purchases made during the period – Ending inventory

COGS = $20,000. + $7,000. – $4,000.

Therefore, COGS = $23,000.

The COGS equals $23,000, as calculated. Use this formula to help with production, purchasing, and pricing decisions.

Calculating COGS can also help you to calculate your profit for a reporting period and help with decisions to ensure that indirect costs are covered.

Suppose your revenue is $75,000 in a reporting period.

Knowing the COGS, your profit will be $75,000. – $23,000. = $52,000.

COGS – Key business takeaways

  • The COGS formula can be used at an individual product level to help with decision making prior to producing, procuring, and selling that product.
  • The COGS for a reporting period is the total of COGS for all product sales for that reporting period. It is a vital metric that is included in your financial statements and is used to calculate your gross profit for that reporting period. Gross profit is a profitability measure that shows how well a business can cover its indirect expenses and earn a profit.
  • The value of COGS will always depend on the direct costs of the products sold and the inventory valuation method used by the business.

Closing remarks

A cloud-based inventory and order management system that has been designed to integrate bi-directionally with your accounting software is key to keeping a close and accurate view of sales performance. Cin7 offers access to real time inventory levels and associated financials that make it easier for product sellers to feel confident that they are earning a healthy profit margin.

To learn how Cin7 can modernize your operations, book a call with one of our experts.

 

Supply chain resilience strategy: build and measure

RESOURCE CENTER

Product Category Sold

 

Yes/No

 

Platforms & apps Yes/No Ideas & tools for Yes/No Written for Yes/No

 

Beauty & cosmetics No Amazon No Demand planning Yes Accountants & bookkeepers No
Electronics No BigCommerce No Fulfillment/3PLs No Agencies & experts No
Fashion & apparel No Magento No Marketing & growth No Brands No
Food & beverage No QuickBooks No Selling to retailers/EDI No Ecommerce – first retailers Yes
Furniture & home goods No ShipStation No Software training No Manufacturers Yes
General retail No Shopify No Successful implementations No Retailers No
Sports & equipment No WooCommerce No Supply chain resilience Yes System integrators No
    Xero No System audits & optimization Yes Virtual CFOs/accountants No
        Technology planning No Wholesale / B2B Yes

It is no secret that COVID-19 damaged the modern-day supply chain. From silicon shortage to toilet paper stockouts, the marketplace has seen it all. According to a survey from the Institute for Supply Management, 95% of the businesses had to endure operational troubles during the initial pandemic days in April 2020.

While businesses cannot prevent such disruptions, they can prepare themselves to persevere through them.

The Cin7 team has compiled a list of strategies to build a resilient supply chain for your business and help gain an edge over the competition.

What is supply chain resilience?

The origins of the supply chain resilience concept can be traced back to the work of C.S. Holling, an ecologist who coined the term “ecological resilience.” It refers to the ability of an ecosystem to maintain normal patterns despite being subjected to the damage arising from ecological disruptions.

Supply chain resilience is defined as an organization’s ability to recover from unexpected supply chain disruptions using its “ecosystem’s” existing capabilities, ensuring that the operations run smoothly and the customers remain satisfied.

Challenges and risks in building successful supply chains

The pandemic disrupted nearly every stage of an organization’s supply chain. The effect was global and prolonged.

As bad as the pandemic was and continues to be, it is just one of the many factors that disrupt the smooth functioning of the supply chain. Here are some scenarios that pose risks to the supply chain:

#1 Operational risks

Operational risks occur because of breakdowns in normal working operations. Both technical and non-technical reasons can pose this risk.

Example: Machine failure due to poor maintenance (technical) and mismanagement (non-technical). This risk can be classified as internal risk, i.e., it can be fully controlled and avoided by the organization.

#2 Financial risks

Delays from the supplier can cause delays in your production process. This type of risk emerges due to shortcomings in the suppliers’ finances and revenue.

Example: The supplier reduces the production of your raw materials due to their own financial woes or files for bankruptcy. To combat such a scenario, either extend them a line of credit or search for an alternative supplier.

#3 Legal risks

Legal risks arise when organizations are slapped with lawsuits, whether they are frivolous or not. Fighting lawsuits takes a toll on your time, money, and resources. Severe cases can also tarnish your reputation, leading to a loss in revenue and business development.

Example: If a lawsuit for an intellectual property violation is filed against your company or you are fined for breaking environmental laws, any suppliers who get trapped in either scenario can catastrophically disrupt the supply chain of your business.

#4 Geopolitical risks

Globalization has converted the entire world into a connected village, where consumers are no longer dependent on geographical boundaries to purchase items.

Producers benefit from globalization, as they are no longer restricted to sourcing their raw materials from the same region. Faster connectivity ensures that they can order from any corner of the world at a price that fits their budget.

Global connectivity also comes with its challenges. While businesses operate under the trade and commerce laws of their nation, working with partners from various countries adds various layers of complexity.

Situations like political turbulence, governmental policy changes, and war outbreaks can hinder your suppliers’ capacity to make timely delivery.

Example: The US-China trade war and Brexit are classic examples of geopolitical risks.

#5 Natural disasters

Hurricanes, earthquakes, and other natural disasters have been disrupting the supply chain for ages. Such disasters can be classified as external risks, as they are not in the control of the business. Regardless of the classification of risk, these calamities lead to port closures and cargo flight cancellations, in addition to creating capacity constraints and supply shortages.

Even climate change affects the operations of businesses. Research from the

United Nations Development Program (UNDP) suggests that rising temperatures could lead to adverse effects on the workers.

According to the UNDP, climate change’s economic impact on labor productivity could reach $2.5 trillion in global losses by 2030.

Example: In 2017, Hurricane Harvey and Irma—fueled by symptoms of climate change—hit the gulf coast in a span of two weeks. These hurricanes left a trail of physical and economic destruction, including a severe disruption to the regional supply chain.

#6 Cyberattacks

The rise of digitalization has also given rise to cyber security attacks. In fact, cyberattacks have become a leading cause of supply chain vulnerability.

The supply chain becomes a tempting target for hackers as vendors often possess sensitive data about companies or have enough access to allow for privilege escalation.

As attacks of such nature become more common, manufacturers must invest in cybersecurity proactively. This is for safeguarding them as well as their clientele’s data.

Example: Airbus is one of the world’s largest airline manufacturers, and they were subjected to a series of cyberattacks in 2018. The hackers gained access to the confidential documents containing the schematics for classified military transport planes through the attack.

Strategies to build a resilient supply chain

A robust supply chain resilience strategy requires two complementary supply chain pillars: resistance and recovery capacity.

Resistance capacity is the ability of a supply chain system to minimize the overall impact caused by disruption. It can be done in two ways:

  • Evasion: Entirely avoiding the factor causing disruption in the supply chain.
  • Containment: Minimizing the period between an event and the time when the supply chain starts to recover from the effects.

Recovery capacity is a supply chain’s ability to restore itself to the level prior to its disruption.

For organizations to achieve true supply chain resilience, they need to be prepared to confront obstacles before they cause any considerable damage.

There are seven distinct strategies to build strong resilience and ensure quick recovery.

#1 Creating buffers

Manufacturers should create buffers to build resilience against minor operational risks like employees calling out sick or shop floor machines breaking down. Building buffers and making them a part of your operational process reduces your dependence on the supply chain working at full capacity.

According to one survey, 21% of the supply chain experts consider maintaining buffer stock as a solid indicator of resilience. The challenge of maintaining high buffer stock can increase your carrying costs, so the optimal buffers need to be strategically planned.

#2 Optimized inventory control

If you are relying on a single warehouse for storing your inventory, consider the option to spread your inventory across different locations.

A natural disaster damaging the warehouse or a virus outbreak among warehouse employees would undoubtedly lead to fulfillment delays.

Splitting the inventory helps minimize the risk and helps expand your customer reach by reducing shipping costs and speeding the shipping time.

Another way to build resilience is to invest in technology that provides real-time visibility into your supply chain. It helps monitor your supply chain performance and identify any and all bottlenecks. Inventory management software assists you to make better inventory decisions and set up reorder points to ensure that you never run out of stock.

Investing in an integrated warehouse management system helps you with better inventory management while reducing the number of errors. Successful organizations devise strategies to manage the longer lead times and methods to counter the unexpected surge in demand, while building replenishment models to ensure that the goods are available when needed.

#3 Investing in human resources

Human resources are necessary to complete the work but having experienced supply chain managers with market knowledge helps navigate through unexpected disruptions.

Merely hiring exceptional people is not enough—the business also needs systems built and SOPs to establish production infrastructure. Your team should have personnel dedicated to fostering better supplier relationships and for commodity management.

Commodity managers monitor the market to scout for new products in demand, price changes, and the latest supply chain developments. This information helps ensure staying on top of market trends and aids in better cost management and decision making.

Helpful hint: The pandemic has been a catalyst to the remote working environment. Such work environmental changes affect the wellbeing of the workers, both physically and psychologically.

The mental well-being of the workers must not be overlooked. “Emotional resilience” is every bit as important as supply chain resilience.

#4 Having multiple supply partners

The concept of partnering with multiple suppliers for procurement is referred to as multisourcing.

One piece of famous investment advice is “Don’t put all your eggs in one basket.” Similarly, relying on a single partner for procuring materials is filled with risk, so partnering with multiple vendors will ensure that your proverbial eggs are placed in several baskets.

Multisourcing ensures that your supply chain does not get disrupted when your primary supplier fails to deliver on time, as you can source it from someone else. It also helps with incentivizing competitive pricing among suppliers so that you get the best returns.

The pandemic demonstrated that diversification is an integral part of building supply chain resilience. For example, China is lauded as one of the world’s leading raw materials suppliers but had production grind to a halt due to Covid-19. When the lockdown was imposed in 2020, manufacturers sought and partnered with different countries like Mexico and Vietnam to expand their network.

Helpful hint: While working with multiple suppliers, you should have a dedicated team for supplier relationships. The supplier relationship manager focuses on developing deeper relationships with suppliers by understanding their core strategies and approaching them with mutually beneficial opportunities. If the supplier is working on limited capacity, there is a good chance they will prioritize the business that has built better relations with them.

#5 Effective communication

Managing supply chains requires a cross-functional effort from all the departments. Businesses need to be agile and loosen the silo structure, which inhibits the flow of information.

As the trend for hybrid working increases, companies should allocate the necessary IT resources for smooth operations and orient them with the relevant tools for communication. Managing virtual teams is very different from conventional teams, so provide managers adequate training to lead them.

Helpful hint: Keep your employees and suppliers in the loop during any periods of disruption. Provide them with relevant company information to help them make informed decisions and minimize errors.

#6 Planning and forecasting

When introducing a new product to the marketplace, it takes approximately two to three years for product development, and the lead time takes approximately 25 to 40 weeks.

It means that to deliver a product during the holidays, a business must start the plan in March. However, businesses forecast demands using their historical data, yet no demand forecasting plan would have predicted that a pandemic would be declared in March, leading to lockdowns and drastically changing customer preferences.

A feasible way to combat such forecasting issues is to invest heavily in analytics and upgrade supply chain technology. A business continuity plan identifies all the potential risks, quantifies them, and then devises a plan to deal with them, while keeping the organization running concurrently.

#7 Developing ecosystem partnerships

Many eCommerce businesses lack the supply chain infrastructure to manage the inbound and outbound logistics. This is where third-party logistics (3PLs) come to the rescue.

Partnering with 3PLs can offer reduced costs, a warehousing facility, and access to a better transportation network. This can help streamline the fulfillment process and diversify the fulfillment process so that manufacturers can prioritize their core competence.

Third-party logistics partners also bring their years of experience to the table, helping you optimize your solid supply chain infrastructure and build resilience.

Measuring supply chain resilience

To test the efficacy of your planning, McKinsey recommends a stress test model. This model quantifies the supply chain resilience against five factors:

  • Industry attractiveness
  • Customer exposure
  • Operations exposure
  • Corporate resilience
  • Supply chain exposure

Apart from the stress test model, there are three core metrics that help in evaluating supply chain resilience.

#1 Time to survive

This metric refers to the time to resume business operations after a disruption.

For instance, the time to survive metric for some factories in China was nearly three weeks. It reflects how long it takes to establish the necessary safety measures (like offering personal protective equipment kits) and obtain clearance from the government.

In this phase, the companies need to answer some key questions around:

  • Compensating the people
  • Bringing people back to the workplace
  • Taking corrective measures to reopen their premises

In a nutshell, time to survive answers the question, “How long does it take to reopen the business?”

#2 Time to recover

Recovery time is how long it takes to return your business to the capacity it had before the disruption.

Even though the Chinese factories started to function again after the Covid-19 outbreak, they were only running at a fraction of their standard capacity. This occurred due to a lack of workers and loss of production time. It took an additional three to four months to recover.

Prepare and protect your business by examining how long it would take to get operations back in working order.

#3 Time to thrive

The time to thrive arrives after the recovery phase, but only after an evaluation of how the business confronted the crisis.

It juxtaposes the state of business before and after the crisis and determines if and how the company learned any lessons from the disruption and improved.

Regardless of what analysis emerges during this phase, businesses should be ready to pivot their offerings to match what the market demands now. For instance, many restaurants now offer home delivery or pick-up due to the consumers’ behavioral change caused by the lockdown.

Once a company determines how it has or hasn’t improved after facing the crisis, the time to thrive is not far off.

In summary

Businesses need to be agile and flexible enough to adapt to the changes caused by disruptions.

Building a resilient supply chain mitigates the risk and boosts operational efficiency. Companies that invest in supply chain resilience often see shorter product development cycles than those that overlook it, which can be a competitive advantage.

By partnering with Cin7, you can automate your workflow as well as get better analytics and insights about your inventory, which helps in data-driven decision making. You can also partner with the best 3PLs through our integrations.

The experts at Cin7 can help you build a resilient supply chain for your business. Book a call now to discover more!

 

7 considerations for EDI success

 

Product Category Sold

 

Yes/No

 

Platforms & apps Yes/No Ideas & tools for Yes/No Written for Yes/No

 

Beauty & cosmetics No Amazon No Demand planning Yes Accountants & bookkeepers No
Electronics No BigCommerce No Fulfillment/3PLs No Agencies & experts No
Fashion & apparel No Magento No Marketing & growth No Brands No
Food & beverage No QuickBooks No Selling to retailers/EDI Yes Ecommerce – first retailers No
Furniture & home goods No ShipStation No Software training No Manufacturers Yes
General retail No Shopify No Successful implementations Yes Retailers Yes
Sports & equipment No WooCommerce No Supply chain resilience No System integrators No
Xero No System audits & optimization No Virtual CFOs/accountants No
Technology planning No Wholesale / B2B Yes

Technology has drastically improved how we interact with the world. Transportation has evolved from animal carts to fast cars; data transmission has changed from postal letters to instant emails. With the advent of the Internet, the world has turned into a connected village.

In such a connected world, your business needs to be able to share relevant information with stakeholders like suppliers. Thanks to technology, this process can be streamlined using EDI. You can electronically share information about purchase orders, invoices, and status information with your stakeholders using EDI.

In this article, we will discuss what EDI means and what challenges you may face while using EDI for your business. Let’s get started.

What is EDI?

EDI stands for Electronic Data Interchange, and it facilitates the computer-to-computer data transfer between two (or more) parties. In layman’s terms, EDI is similar to a chat messenger that delivers information from your device to your friend’s device.

The parties that exchange information through EDI are EDI trading partners. EDI software allows its users to create templates so that they can standardize documents shared with EDI trading partners.

Suppose you integrate EDI with your ERP (Enterprise Resource Planning) tool or inventory management system (IMS). Once complete, your EDI can automatically fetch the necessary documents from the ERP/IMS database and send it to trading partners as required. This way, you do not have to create documents from scratch.

In the absence of EDI, businesses had to rely on the postal service, faxing, or email all of which had drawbacks. Let us understand EDI better with the help of an example.

John runs an apparel business, and he replenishes the inventory by ordering goods from David – the manufacturer. In the past, his purchase manager would draft a purchase order, print it, and then postal mail to David to reorder stock. The order would be received by David’s sales representative, who would manually enter the items being ordered along with the respective quantity into the system to finalize the sale.

The process seems lengthy and time-consuming, right? With EDI, sending information takes seconds rather than its postal counterpart – which can take days (even weeks!).

John’s purchase manager simply needs to add order information – product specification, quantity – in his EDI software, which will be automatically forwarded to David’s (manufacturer) EDI software. David can easily integrate the EDI tool with his order management system, such that an order can be directly placed when John sends a purchase request through EDI.

 

 

Credit

It is evident that EDI can streamline the purchase process which is better than doing it manually. The manual process also has room for many errors; for starters, the sales representative can enter incorrect order quantities into the system.

EDI not only saves your processing time, but it also helps in boosting the accuracy as it minimizes human error.

EDI also brings labor cost savings, as you do not need to incur the charges of printing the order details and the cost of postal handling/faxing/email the documents. Even the recipient does not need to endure the hassle of sorting and storing the physical copies for the record.

Common EDI challenges

Now that we are clear about the use and benefits of EDI let us also discuss the challenges faced while implementing EDI.

#1 Compatibility with trading partners

Deciding to implement an EDI system involves revamping your database. This challenge can multiply if you choose to create and administer the EDI in-house. Even after successful implementation from your end, the challenges do not end.

As EDI facilitates the transactions between trading partners in real-time, it is essential that your EDI system successfully synchronizes with their system for accurate data transfer.

Another hurdle could be that some of your suppliers may not be so keen to implement an EDI due to a lack of knowledge and hesitation about data sharing.

Apart from the stakeholders, it is also essential to train your internal staff to work with the EDI system. You do not want your purchase manager to order 1,000 items instead of 100 accidentally! The repercussions of mistakes can be huge, and thus it makes sense to fully acquaint your employees with the relevant features of the EDI.

As the stakes are high, it is advisable to consult an EDI expert rather than trying to figure things out on your own.

#2 Standardized formatting

The complexity of EDI integration can be challenging when your trading partners customize the formatting guidelines to cater to their unique needs. For instance, the invoicing transaction code is referred to as EDI 810.

Some invoice fields are common across all trading partners. However, the partner may likely add some additional EDI segments specific to their business.

In such scenarios, compatibility can be an issue that can lead to transaction errors. Here the experience and support of EDI providers become crucial as they are experienced with handling such issues.

While doing B2G (Business-to-government) transactions, your EDI should be compliant with the document formats legislated by the government. For example, Since 2020, the majority of European governments have been mandated to accept invoices electronically. Even the federal German public bodies have stopped accepting unstructured invoices – PDFs, printed documents – and only accept e-invoices.

As your business expands, it is essential to comply with government standards to avoid penalties. The standards can be region-specific – like the VDA format in the German automobile industry – or industry-wide.

These are some widely adopted standards in the EDI industry:

  • UN/EDIFACT (Electronic Data Interchange for Administration) was devised by the United Nations in 1987. It created standards for the syntax and structure of the messages to ensure that EDI is compatible with multi-industry transactions.
  • GS1 is essentially a subset of EDIFACT, and it is widely used to standardize product data. It uses GS1 identification numbers to help identify each product, location, and trading partner. The GS1 identification numbers are usually in barcode format, which can be scanned to add the physical products into the database, and movement can be tracked.

You must also ensure that your EDI can accommodate various transmission protocols such as FTP, HTTP, SFTP, and AS2. AS2 (Applicability Statement 2) has gained popularity in the retail and consumer goods industry since its adoption by Walmart. AS2 is used to transmit EDI messages quickly, safely, and cheaply!

#3 Security considerations

Despite its wide adoption across various industries, some partners may still be concerned about implementing EDI due to the nature of information sharing.

These concerns may arise from various factors such as lack of trust and risk of information leak due to security breaches. International laws can further add to the challenges by introducing legal frameworks and data protection rules.

You must ensure that the information is shared via encrypted transfer protocols. It is best to discuss your security measures with your partners, to ensure that everyone is on the same page and comfortable with your business practices.

It should be noted that the sensitivity of the information varies, like your order data may not be as sensitive as the invoices (which can contain vital billing information). You need to take extra precautions while dealing with highly sensitive data – as with healthcare customers, for example.

A value-added network (VAN) is a hosted private network that is used to offer connectivity between EDI trading partners. It acts as the gateway to sharing documents between parties – in other words; it is like a digital postal service. You need to check the security certifications of your VAN network, like ISO 27001 accreditation.

#4 Rising EDI cost

EDI helps lower your operational costs and optimizes logistics; however, you need to spend to get started. A substantial investment to purchase the necessary infrastructure – hardware and software – for EDI transactions will be required. If you decide to build an in-house EDI, you also need a dedicated IT team for its maintenance.

If your EDI implementation does not go well, it could also tarnish your reputation amongst your trading partners. Your manufacturing vendors may even penalize you for incorrect ordering as it can impact their production lines.

To lower your costs, you can outsource to a cloud-based EDI system provider. In this case, you won’t have to invest in a dedicated set-up and transactions run in the cloud, leading to cost savings.

Additionally, a provider updates the EDI automatically, so it saves you from any hassle when scaling up.

#5 Data errors

According to a study by the University of Tennessee, 60% of B2B transactions are suspended or declined due to some anomaly in the data. This makes it crucial to take necessary steps for data governance, to make the most of your EDI’s potential.

The report further suggests that 16% of the orders placed in a month contain an incorrect price and 20% of orders are for items that are either discontinued or not available in stock. Surprisingly, 8% include a duplicate purchase order.

Such situations can be dealt with by adding EDI rules that monitor transactions for variables like price differences and PO validity. This way, the system can send alerts to your team whenever a discrepancy is found.

There are times when a manufacturer needs to increase the price of a particular product. Needless to say, it is crucial to alert the buyers so that they can alter their order quantity.

For instance, the purchase manager gets a specific budget (say $100) to order a quantity of goods. Presently, the manufacturer sells each unit at $10, so the buyer can avail of ten units ($100 budget / $10).

However, if the manufacturer increases the price from $10 to $20, the purchase manager will need to reduce the quantity from ten units to five units ($100 budget / $20). But if the manufacturer does not promptly inform the buyer about the price change, it could lead to disputes and damage their relationship.

Price changes are inevitable; to solve such issues, businesses use EDI 845 – the price authorization acknowledgment document. Vendors use it to communicate price changes to resellers. EDI 845 is used primarily in the pharmaceutical industry, but manufacturers and distributors also utilize it.

As your business operations scale, so does the volume of your EDI transactions. With greater volume, it can become challenging to avoid errors or spot missing fields. Popular EDI formats such as EDIFACT were not meant for humans to comprehend, and that is why spotting errors can be tricky.

Even if you somehow manage to do that, manual error inspection is time-consuming. Thereby, automating the error detection process can help you save time and increase your profit margins.

#6 Integration with your inventory management system

EDI should be flexible to adapt to your way of doing business instead of the other way around. The technical integration should allow you to use the formats that you prefer or commonly used by your trading partners.

Many businesses already use an ERP (Enterprise Resource Planning) system or inventory management solution to gain insights into their business processes. Look for an EDI that also integrates with your existing system so that you can directly process the EDI orders.

Instead of manually pulling the documents from EDI and then feeding them into your inventory system, you can do this in real-time by integrating them together. This helps you meet increased customer expectations.

#7 Offering transparency

As the complexities of the supply chain rise, the need for transparency between trading partners is more important than ever.

The functionality of EDI has evolved over the years. What started as a means to improve the B2B transaction process has now evolved into a tool that provides better inventory management.

You can adopt some EDI transactions that provide inventory information to boost transparency. EDI 846 can provide information about inventory levels, and EDI 214 offers buyers shipping status notifications.

With the right system, you can share alerts and notifications with your trading partners. Offering transparency ensures that information is not siloed and helps everyone to be on the same page.

Wrapping up

We live in a period where the supply chain is constantly getting disrupted by various factors – be it pandemics or political factors. During such a period, investing in technology that can help optimize your supply chain – such as EDI – seems an obvious choice.

Implementing EDI can be beneficial as it streamlines your B2B transactions and provides much-needed transparency. Choosing the right EDI that integrates with your ERP can do wonders for your organization.

Vetting the best EDI is also vital as it contains sensitive information that can affect your business’s overall profitability.

To learn more about Cin7’s built-in EDI capabilities, request a demo.

Sales order benefits and best practices

Resource Center

Product Category Sold Yes/No Platforms & apps Yes/No Ideas & tools for Yes/No Written for Yes/No
Beauty & cosmetics No Amazon No Demand planning No Accountants & bookkeepers Yes
Electronics No BigCommerce No Fulfillment/3PLs No Agencies & experts No
Fashion & apparel No Magento No Marketing & growth No Brands No
Food & beverage No QuickBooks No Selling to retailers/EDI Yes Ecommerce – first retailers No
Furniture & home goods No ShipStation No Software training No Manufacturers No
General retail No Shopify No Successful implementations No Retailers Yes
Sports & equipment No WooCommerce No Supply chain resilience No System integrators No
Xero No System audits & optimization No Virtual CFOs/accountants No
Technology planning No Wholesale / B2B Yes

Sales order benefits and best practices

The sales order process is one of the most essential workflows for most businesses. Optimizing the process can save money and time as well as enhance the customer experience. Businesses with efficient sales order processing in place have recognized a boost in cash flow and productivity. However, an inefficient sales order system has direct consequences on business performance – data errors, inability to fulfill orders, and slow cash flow.

So, what exactly is a sales order? How does it benefit your business? And what steps are needed to optimize the process?

Sit tight! We’re going to take you through the entire process including:

  • What a sales order is and the sales order process.
  • Why you should automate sales orders.
  • What the benefits of sales order automation are for businesses.
  • What the best practices are to optimize sales order processing.
  • How Cin7 can help your business optimize your sales order process.

What is a sales order?

A sales order is an official document generated by the seller when a customer places an order for a specific product or service. It’s generated in response to a purchase order (PO).

Just as a refresher, a PO is created by the buyer and delivered to the supplier for specific materials at agreed upon terms and conditions. The sales order is confirmation of the PO issued by the supplier and given to the buyer prior to delivery. The purchase order creates the contract and the sales order approves the sale.

The entire process is generally completed in three basic steps:

  1. The buyer generates a purchase order and delivers it to the seller requesting a certain quantity of materials at a certain price. Other items on the PO can include delivery schedule, delivery address, and purchase terms.
  2. Considering the purchase order, the seller issues a sales order for the buyer. The sales order approves the sale, sets payment details, and confirms the items on the PO that are included in the sale.
  3. Once the seller processes the order, the seller generates an invoice from the sales order for final payment from the buyer.

For those businesses that generate a handful of sales orders every few months, the process can be done quite simply using a manual system. However, businesses with a high sales volume cannot successfully generate manual sales orders without risk of errors.

Using manual entry for every sales order increases your risk of human error. Mistakes in quantity and pricing on the sales order lead to accounting errors. Using an automated sales order process dramatically lowers the risk of human error and accounting mishaps.

A sales order is also a critical document used for inventory management. It maintains a record of orders and provides information on inventory status. Using sales orders also allows you to track products in stock and on backorder.

The evolution of sales order automation

In the “old” days, managing orders involved many hands and mountains of paperwork. The lack of automated order management software meant that individuals from different departments needed to work together to manage inventory through the sales process, maintain accurate shipping and receiving details, and generate purchase and sales orders.

Using emerging technologies and innovation, traditional sales order processing has quickly adopted digital solutions. Consumer-oriented sellers like online retailers are aggressively embracing new techniques to extract specifications directly from purchase orders, eliminating manual input.

Electronic data interchange (EDI) systems are fully automated sales order processing applications. EDI uses optical character recognition to extract the information from paper and quickly – and accurately – transform the information into electronic data. Information is automatically entered into a human-related format and flagged should something require a recheck.

This is a far cry from using CRM solutions to generate quotes, orders, and invoices. CRM tools are unable to create new sales orders. At best, they handle customer information and sales history – as well as work for their intended use of contact management.

Benefits of sales order automation for businesses

Using an automated sales order system makes it simple to manage and update orders using a single platform. Moreover, implementing digital solutions increases the capability to respond to orders from all channels. In contrast to traditional sales order processing, automation can offer a wide array of benefits:

#1 Process orders faster

Automation is up to 75% faster compared to using a manual process. Eliminating manual coordination and data entries from the process leads to faster processing. It helps streamline each phase of the process, allowing businesses to pick and ship customer orders more quickly, save on processing costs, and enhance the customer experience.

#2 Maximize productivity and profitability

Using inventory and order management software, businesses can easily automate the entire sales order process. With this software, you can instantly create sales orders, shipping orders, and invoices thereby speeding up your order to cash process.

Another benefit of using automated sales order software is that it automatically counts and tracks your inventory. Additionally, you can set automatic notifications to alert you when your inventory levels are low.

In a nutshell, the faster you process and ship orders, the faster you get paid. Automation is one of the keys to a healthy cash flow.

#3 Improve accuracy and reduce errors

Automation can minimize or eliminate human interference in sales order processing resulting in improved accuracy. Moreover, some sales order processing systems can automatically extract information from purchase orders and generate sales orders without any manual involvement.

These smart systems are integrated with such features that use keyword detection to prioritize urgent or important orders, ultimately resulting in greater customer satisfaction and fewer returns.

#4 Streamline workflow using cloud-based solutions

Whether you’re a single or multichannel sales environment, cloud-based inventory and order management software can streamline workflow. Cloud-based management solutions provide a central location for all departments, regardless of location, to have real-time access to inventory levels and sales orders. Additionally, cloud-based solutions eliminate the risk of data loss.

Undoubtedly, implementing an easy-to-use software solution to automate your sales order process is a brilliant way to boost productivity and cash flow.

Best practices to optimize sales order processing

There are definitive ways to improve your sales order process. To make the optimization process simpler and easier, many businesses opt to outsource to a company specialized in customizing sales order automation. However, if you are considering the process in-house, here are the best practices that you need to know:

#1 Invest in an order management system

As your business grows, workflow becomes more complex. That’s where implementing an order management system helps minimize manual inventory and order processing tasks to increase sales from multiple locations with complex workflows.

Switching to order management systems means having a single unified platform to manage inventory. It automates the entire order-to-cash cycle. A cloud-based system  is accessible anytime from anywhere.

Making the investment to secure an order management system can ensure better profits in the long run as it requires fewer involvement of internal resources. Automating the process with an order management system will facilitate better communication between teams, improve workflow, and enhance the customer experience.

#2 Automate the entire sale order process

Manual processing is vulnerable to human errors that can quickly turn the sales order process into an expensive blunder. Automation eliminates human error and repetitive tasks.

Automation is able to:

  • Generate the sales order when inventory is confirmed.
  • Show a flag or other warning when inventory level is low.
  • Send purchase orders to suppliers for restocking.
  • Send picking requests to appropriate warehouse managers.
  • Generate customer sales orders.
  • Schedule pickups and estimate shipping costs.
  • Communicate with customers to keep them in a loop.

To manage these processes, you will need to know more about inventory management software and order management systems. With the implementation of these two systems, you can handle the sales process, control inventory, and manage supplier requests from a single platform.

#3 Scrutinize your existing process

To optimize your process, you need to address exactly what you want or need to fix. Therefore, your initial step should be mapping out your current sales order process using a flow chart. Get into the details of each step to reveal all the nuances involved in the process. Include details about how long the process takes. Use this audit to easily address potential holes in your process.

These are just a few of the best strategies you can use to streamline your sales order process.

Cin7 can help you optimize your sales order process

Automating the sales order process can help establish a workflow that requires less human involvement and minimizes processing time – from initiating a sale through delivery. Automation fosters business growth. So, instead of implementing standard solutions, allow Cin7 to empower you with the flexibility to design a platform to match your business needs – and grow as your business grows.

Cin7 sales order management software makes it easy to manage your entire sales process from anywhere at any time. Offering a cloud-based system helps your team be more efficient and productive. By implementing Cin7 you can create automated workflows to keep your team connected and informed.

Want to learn more? Let a Cin7 representative walk you through the benefits of our order management software. Book a FREE demo today!

A detailed guide to preventing inventory shrinkage

What is inventory shrinkage?

If you own a retail business, you’ve likely experienced inventory losses. Unplanned inventory loss, known as inventory shrinkage, results from a myriad of causes including theft, shoplifting, and damage both in-store and in-warehouse.

For example, Rio Shoes, Ltd., had 4820 pairs of shoes, but, upon a physical count, the inventory was only 3980.

According to the 2020 Retail Security Survey published by the National Retail Foundation, inventory shrinkage cost the retail industry $61.7 billion in 2020. Retailers need to take steps to prevent unwanted loss that results in decreased profitability.

“In a business where we only make a penny on every dollar that comes in, it is especially important that we control our shrinkage.”

Fred Klein, VP Loss Prevention, Big V Supermarkets

Here, we will learn why it’s important to calculate inventory shrinkage rate, how to calculate the rate, and how to prevent or reduce inventory shrinkage.

What are the leading causes of inventory shrinkage?

There are several reasons that contribute to inventory shrinkage. However, the top reasons include shoplifting, employee theft, administrative and paperwork errors, and vendor fraud or error.

According to the 2021 Retail Security Survey, participating retailers indicated that these loss risks and threats have become more of a priority for their organization over the last five years:

Why is calculating inventory shrinkage important?

It is well-known that physical inventory in the retail business consumes an enormous amount of working capital.

Inventory is money that is stashed in your warehouse. 

This only highlights the importance of identifying the sources of inventory loss and stopping or decreasing the causes.

A certain amount of inventory loss will be attributed to damaged goods. However, concerted efforts and corrective actions must be taken to eliminate unethical reasons such as theft.

“Not controlling shrinkage is taking a shortcut to bankruptcy.”

John L. Pagliaro, President of Dana Associates

How to calculate inventory shrinkage

Inventory shrinkage and rate are determined for a specified period, such as the fiscal quarter or year. Inventory shrinkage is calculated by subtracting actual inventory value by recorded inventory value. The shrinkage rate is calculated by dividing inventory losses by the amount of inventory you should have, and multiplying that number by 100 to determine the rate.

To calculate the rate, you’ll need to determine the following:

  • A physical count of actual inventory and its value.
  • The recorded inventory, or inventory you should have, and its value.
  • Deduct the value of actual inventory from the recorded value to determine inventory loss (inventory shrinkage).
  • To calculate the rate, divide inventory loss (inventory shrinkage) by the recorded inventory and multiply by 100.

Inventory shrinkage = recorded inventory value – actual inventory value

Inventory shrinkage rate = inventory shrinkage / recorded inventory value * 100

For example: Joe’s Accessories has $5200 mobile accessories. After conducting an actual inventory count, they determine the value on hand is only $4900. Joe’s Accessories realized inventory shrinkage of $300 with a rate of 5.7% over a specified period (fiscal quarter or year).

Inventory Shrinkage = $300 ($5200 [recorded inventory] – $4900 [physical inventory])

Rate = 5.7% ($300 [inventory shrinkage] / $5200 [recorded inventory] * 100)

How to prevent inventory shrinkage

A combination of safety measures can be implemented to reduce or prevent inventory shrinkage. Some of those include:

1. Implement a two-person checks and balances system

A checks and balances system is a system that can be implemented at crucial inventory management stages like signing invoices, accepting stock, and recording stock.

Having a second person verify records prevents inaccuracies and omissions. It can identify loopholes contributing to stock shrinkage so that measures can be implemented to control fraud.

2. Safeguard expensive inventory

Inventory shrinkage is measured in terms of value. Safeguard expensive items by assigning employees with special privileges to handle that inventory, or store expensive items under lock and key in a separate location.

3. Prevent vendor and purchase order fraud

Follow-up with vendors to ensure your purchase manager isn’t involved in transactions that are questionable or unethical in nature. Double-check damaged goods that are filtered from purchase orders. Employ inventory management software like Cin7 that provides trackbacks and purchase order history.

4. Eliminate loopholes and improvise process

Identifying loopholes to prevent employees from exploiting inventory can significantly reduce inventory shrinkage.

5. Increase pre-employment screening

Small items such as truffles, caviar, gemstones, and small electronic devices are high value and easy to steal. Boost pre-employment screening to include:

  • Background checks
  • Criminal history
  • Credit history
  • Education verification
  • Past employment history

6. Employee training and incentives

Proper loss prevention training will reduce shrinkage. In addition to loss prevention training, employee incentives. Create a strong company culture that fosters honesty and integrity.

7. Invest in a security system

A lot of hardware systems with software support are available on the market to safeguard inventory from being stolen. These systems include CCTV cameras, intrusion detection, door auto lock systems, and door access control.

Alternatively, you can install a custom system according to your needs and budget to reduce theft as well as unauthorized access to your warehouse.

8. Track your inventory

Using the latest technology business owners can track inventory as it moves from procurement to sale. Examples of tracking devices include radio frequency identification (RFID) tagging and bar codes.

9. Invest in an inventory management system

The role of an inventory management system is to monitor movement of products from procurement through production to sale. A good system will allow you to track inventory to a specific location whether that is a bin in a warehouse or a store shelf.

An inventory management system ensures that you have enough inventory (stock) to meet demand without overstocking.

What if inventory shrinkage goes unnoticed?

Missing inventory will adversely affect your profits.

“Shrinkage is the single greatest threat to profitability in our industry.”

Alasdair McKichan, President, Retail Council of Canada.

Here’s an example: Joe’s Accessories sells accessories at a 20% profit. When inventory valued at $1000 is missing (inventory shrinkage), his profit loss is $1200 ($1000 + 20%). Joe’s Accessories loses the actual value of the inventory ($1000) plus the profits that would have been earned by selling the lost inventory (20%).

Ultimately, shrinkage will need to be reconciled in your books. These are recorded as business losses. Significant inventory shrinkage is a monetary loss. Inventory has value – even stock that has been sitting around a while or was acquired through trade or barter.

Final thoughts

Inventory shrinkage can affect your bottom line – at the very least. It can also have deleterious effects on business and employee relations. To boost profits, business owners need to lower their inventory shrinkage rate. The most efficient way to do so is to use the latest and most efficient method of inventory management.

With the use of software systems like Cin7, inventory shrinkage is readily caught and resolved efficiently.

Book your demo now.

4 factors to choosing a high-performing software implementation expert

Cin7 Experts are specialized consultants who are vetted by Cin7 and are committed to providing resources to help brands, retailers, wholesalers, and manufacturers with a wide range of business needs. Experts can handle anything from data migration, technical training, ecommerce, process development and automation, and financial planning.

Since the Cin7 Expert directory went live, UK software integration company Bluehub has zoomed to the top of the rankings, spurred on by five-star reviews from enthused customers. We asked them how they ended up as the top-reviewed Cin7 Expert, and what customers should look out for when choosing a software implementation partner to help them on their inventory management software journey.

Here’s what they told us:

  • Take the time to understand where your customers are at
  • Specialize in top inventory management apps
  • The best experts hire from industry
  • Top experts build custom integrations and make use of APIs

Bluehub began as a Xero ecosystem consultancy and custom software development house, helping customers identify which apps would be right for their business, setting up those apps, and then providing ongoing support. But after a couple of years, they realized that the customers who needed the most help were almost always product-based businesses looking for an inventory solution — so they pivoted hard into that space.

“Over the last six years, we’ve been solely focused on helping product-based businesses,” says Bluehub founder Guy Earnshaw. “We help customers either build on a foundation of an existing cloud system — like Xero or QuickBooks — or we help people who are on legacy, server-based systems take that first step into the cloud with online accounting, plus one of the inventory apps.”

#1 Top Experts take the time to understand where customers are in their journey

Most of Bluehub’s clients fall into one of two categories. The first is established businesses that are looking to move online — to migrate from an existing ERP, or an offline inventory management solution (such as Sage, or even spreadsheets.) Others are those who have already begun their cloud journey, with accounting software like Xero or QuickBooks Online. Bluehub says it’s vital for Experts to understand where a customer is on their journey, what their current level of expertise is, and where they want to go.

“All the clients that we speak to have already started their own journey of looking at software,” Guy says. “So they’re coming to this with some level of education of what they want to do, the sort of problems they’re trying to fix and what their options might be in this space. So the way we describe ourselves to those people is that we are software consultants and developers who specialize in product based businesses going through this transition.”

From a platform of mutual understanding, Bluehub is well placed to help their clients transform their businesses for the better.

“We help with system selection and implementation, which includes everything like training, data migration, and a bit of support,” Guy says. “And then we have ongoing relationships with our clients where we provide basic user support to big integrations, too. So we’re an end-to-end service for businesses just like theirs looking to make exactly this transition.”

#2 The most effective Experts focus on just one or two inventory apps

Early in their journey, Bluehub supported all the inventory software solutions they could. But now they do most of their inventory management consulting work with just two apps: Cin7 and DEAR Systems. Why is that? Zeroing in on just a couple of best-of-breed apps means you can provide better services to customers, faster. There’s less overhead, and fewer learning requirements. You can just get on with the job, confident in the knowledge that your clients are on the best possible system for their needs.

“A big part of that shift is we’re working with more and more complex and larger businesses. From an accounting and a production perspective, DEAR is really quite advanced for products in this range,” Guy says.

Bluehub reckons that the partnership with DEAR is what helps drive great outcomes with their clients.

“[Partnership] gives us an incredible product that we get to sell to our clients and build on that.
Guy says. “And your service can only be as good as the system that you are implementing. Thankfully DEAR gives us a whole heap of tools in our hands that satisfy our clients — we have so many ‘wow’ moments when we’re giving demos or even when we’re working with clients during consultancy.”

#3 The best Experts hire staff from industry

All over the accounting, bookkeeping, software-coaching and implementation world, Experts are finding that one of the best ways to support customers in a particular industry is to hire from that industry. Hiring from industry confers a huge advantage for Experts — it builds credibility amongst their customer base, and enables them to either double down on support for a particular niche, or easily expand to related industries.

“In recent years we’ve hired more people that actually worked in our client’s industries,” Guy says. “We’re taking people out of the manufacturing sector, out of the wholesale and distribution sectors, who’ve worked in industry for over a decade.”

Usually, the industry professionals Bluehub has been hiring have experience in working with large, bespoke ERP implementations. This experience has proved invaluable, as they’re now able to help companies implement a much more nimble and yet highly extensible and inexpensive ERP, in the form of DEAR Systems.

“We’ve brought them into our team to help our clients transition their processes and really fully adapt to the system,” Guy says.

#4 High-performing Experts don’t implement unwieldy ERPs. Instead, they build bespoke integrations and make use of APIs

Top software implementation experts know that the best way to help small and medium businesses thrive is to get them online as soon as possible. For companies that ship physical products, inventory management software is a must-have. But even for SMEs with specialist requirements, they don’t recommend high-maintenance, expensive legacy ERPs.

Instead, they say to get on software like Cin7 or DEAR Systems, as a good Expert partner will be able to make use of APIs to build all the bespoke integrations and app bridges they could ever need.

Bluehub began as a software development house first and foremost, and that legacy comes to the fore when a customer needs something custom-built.

“We still have development at our core, and we build a lot of integrations — often with third party logistics (3PL) companies, but also with eCommerce websites, and a few custom apps for people who have unique requirements,” Guy says.

When a Bluehub client gets set up on DEAR, they end up with a fully-customized system, purpose-built for them out of off-the-shelf components. This app stack often beats the capability of a legacy ERP, at a fraction of the cost.

About Bluehub

Bluehub is a top-ranking software implementation company and DEAR Expert partner. They  provide innovative system integrations and solutions that support their client’s businesses operations and growth. From initial discovery into client needs, to set-up, training and roll-out, Bluehub provides a fully managed service from start to finish. 

About Cin7 Experts

Cin7 Experts experienced with DEAR are an essential part of the Cin7 inventory and order management community. No matter what kind of product business you’re running, where you’re located, or what you’re trying to achieve, there’s a Cin7 Expert on DEAR who can help you achieve your ambition while saving your money and time. 

Thanks to Intuit, your move to the cloud is easier, more rewarding, and costs less

What do product sellers feel when they move from desktop-based accounting and inventory management software to the cloud? Most business owners say they feel happiness and relief, but the next most common emotion reported is regret — that they didn’t do it sooner!

Happily, DEAR Systems and Intuit have worked together to make it easier than ever for product businesses to move online. Thanks to Intuit CEO Sasan K. Goodarzi’s commitment to moving product based businesses to the cloud, we’ve entered a close collaboration. We share a passion for solving product sellers’ most challenging and important problems. After working closely with Intuit’s QuickBooks’ leadership team for six months, we released our DEAR Advanced subscription plan on April 13th 2022.

The DEAR Advanced plan is a perfect pairing of DEAR and Intuit’s QuickBooks Online Advanced Edition in an all-inclusive, easily-affordable DEAR Advanced plan subscription.

The reason behind offering this bundle is simple. For more than 10 years, we’ve helped thousands of product sellers move their operations online. They run their businesses more efficiently, add new sales channels more easily, and eliminate costly operational mistakes. The happiness they experience is contagious, and it inspires our mission to make it easier than ever before for thousands of desktop-bound product sellers to start enjoying the benefits of modern accounting and inventory management software. The most rewarding thing? The gains are substantial, wide- reaching, customer-pleasing, and happen very quickly.

A sharp reduction in errors is the first big gain from moving to the cloud

Product sellers who move to online accounting and inventory management tell us it’s a huge leap from where they were pre-DEAR, when they tracked all pre-orders on a spreadsheet. Both the time to complete tasks and human error are vastly reduced. Automations and filters catch any issues that would have otherwise slipped through and are automatically flagged for attention from the right, responsible manager.

Simon Coward, at outdoor equipment retailer  AQ Outdoors, puts it this way: “Today, all the information is live, and all staff have access to it, and that’s been fantastic. In the last six weeks, there has been more progress in operating our business in the last nine or ten years combined. It’s pretty sick,” Simon grins.

“DEAR is a fully featured inventory software that’s simple to use – and with the right partnerships, it’s easy to make work for your particular use case,” Simon says. “Overall, the time that it saves you is way more than the price. It simplifies work processes, it automates things that otherwise can’t be automated, it reduces errors, and it’s simple for staff to use.” Simon learned a lot from moving to the cloud, and we’ve captured it for you to read.

Check out Simon’s AQ Outdoor story.

Seeing the big picture enables growth: the second big win from moving to the cloud

“Before DEAR, I was always just guessing – the number of boxes in front of me, what’s going to be used for production that day,” Hannah, co-founder of Royal Essence, says.

“After DEAR, the instant win for us was we were able to see the big picture. You can definitely see the movement of the raw materials, and I was able to do our reorders in time. That’s a really big thing for a small business, especially because during that time we were growing so fast.”

After Royal Essence migrated from spreadsheets and made sure their starting inventory information was correct and in sync with their online accounting, Royal Essence immediately gained confidence and efficiency. Things that had been excruciatingly difficult — like reordering in time for the next batch of production — were suddenly easy. With DEAR implemented and day-to-day inventory tracking enabled, things improved all across their business.

What’s more, Royal Essence could track their product through every stage of production and sales: from manufacturing, to freighting and landing, to selling and shipping. The increased transparency and reduced workload meant they could grow — and so they did.

To learn more about their process and the benefits of moving to the cloud, check out the Royal Essence story.

Leaving inefficient, time-consuming, manual inventory management behind: The third big gain from moving to the cloud

Before adopting DEAR Systems, Ovira had no effective inventory control. They had multiple sources of truth, relying on spreadsheets, warehousing partners, and emails to track inventory. “We were literally sending emails to order stock. We were manually tracking orders and spreadsheets. Everything was very much manual, in terms of the accounting backend as well. We were managing inventory in the most shallow way you possibly could,” Tyron Gyde, supply chain manager for Ovira, said.

After only three months with DEAR, Ovira assessed their operations were 75 percent more efficient as a result of DEAR’s automations and ability to be the definitive single-source-of-truth. And, thanks to DEAR’s accurate inventory control, Ovira has supercharged its growth ambitions. They’ve launched into the UK market with a new warehousing presence there, and at the same time, they’ve been able to launch a micro-fulfilment model in the US that offers same-day delivery. “If you’re a customer in central New York, we can get you your product within two hours,” Tyron says. “There’s a lot of other really valuable initiatives we’ve been able to really dedicate time to, just from the extra time we’ve got back from using DEAR.”

To learn more about removing inefficient manual work by moving to the cloud, check out Tyron’s Ovira story.

The fourth big gain from moving to the cloud: Everything is integrated, from shipping to payments to accounting

Before adopting DEAR Systems, Intalite was facing rapidly escalating supply change troubles and struggling to add new product lines and connect their systems.

“We didn’t have an ERP system at all, really — just an accounting program that we used pretty much to the limit of what it was able to do. And the vast majority of the actual business processes were all paperwork. So for every sales order we received, we then had an invoice pad, we wrote the invoice out and had a blind carbon copy to it,” says Luke Gaffey, IT Manager at Instalite UK.

Anywhere there was an inventory process, there was duplication of effort, multiple errors, and tedious manual labor at every step. “At one point, we had more people working in accounts than working in sales,” Luke said.

This sort of approach is far from uncommon at long-established companies, but it meant Intalite were operating at their limit. Just keeping up with the day-to-day was hard enough, let alone planning for the future. To make matters worse, their desktop accounting could not integrate with their online Shopify store or any of their other online solutions they needed to run their business. As a result, their operations were manual, time-consuming, and error-prone.

Like many other businesses moving from desktop to online, Intalite soon discovered that DEAR has comprehensive native cloud integrations for everything they needed. They also found that  DEAR is customizable to a remarkable degree, thanks to its comprehensive APIs.

Once DEAR was in place, Intalite hired a consultant to use DEAR’s APIs to create a script that completely automated a previously difficult and costly job. “We were able to automate that job, and save hours and hours and hours. It was someone’s full-time job at one point, just converting this particular manufacturer’s purchase orders.

Intalite many large positive impacts on the bottom line in their move online from desktop. To learn from Intalite and Luke’s experiences, check out Luke’s Intalite story.

With so much to gain from moving to the cloud, why do product sellers still use desktop accounting and outdated inventory management?

Many product sellers are fearful of change. They dread replacing their systems so much that they live on with painful, inefficient, outdated, and non-competitive ways of working. It’s only when confidence in the large gains from moving to modern online inventory management and online accounting outweigh the perceived costs of changing systems that people start moving to better technology.

As a result, for Intuit and Cin7 to help product-based businesses to experience the dramatic benefits — even life-changing benefits – of modern accounting and inventory management, we‘ve teamed up to:

  1. Make it easier to pick the best online solution to move to, and
  2. Increase awareness and confidence in the benefits of moving from desktop to online.

First, we need to reduce the perceived difficulty, uncertainty, and costs of moving to the cloud. Our collaboration with Intuit on the new DEAR Advanced plan provides a large step forward — by demonstrating DEAR and QuickBooks Online are so closely and well integrated that a bundle is a natural approach.

As one accountant said recently, “DEAR’s Advanced plan is like buying a car. Naturally, you expect a car to have tires. Before this DEAR + QuickBooks Advanced plan, people had to decide on which online accounting to use (which tires to buy) and what online inventory management to use (which car chassis to pick). It took weeks to make two separate decisions and increased the fear of something not working well. Now, DEAR and QuickBooks Online are together in one offering. One smart decision to move to the cloud which involves very little risk given the leading products and brands are together in the DEAR Advanced Plan.”

Second, we need to educate desktop-using product sellers about everyone who is already thriving, thanks to running their business on cloud accounting and online inventory management. The product seller comments in this blog are illustrative of what’s happening in the marketplace. We’re inspired by the success stories we hear everyday and will be doing more to share these desktop to cloud transformation success stories.

Who is the new DEAR Advanced plan for

The new DEAR Advanced plan is available for all product sellers in the United States interested in quickly boosting the success of their business. It’s available to anyone eager to try us or to jump in to get started moving to the cloud right away. Presently, the new DEAR Advanced with QuickBooks Online Advanced edition is not available outside the United States. Many product sellers outside the US are asking for it and we are collaborating with Intuit to make it available in the future.

What should product sellers outside of the United States do if they want to move to the cloud

You should move to the cloud now. You can easily do this by subscribing to QuickBooks Online or Xero. Then, sign up for DEAR or Cin7 separately. It’s that easy. We also have incredible DEAR Experts all over the world who can help you seamlessly move your operations online. Nearly 8,000 product sellers are already enjoying the many benefits of running their business in the cloud. Don’t hesitate — join the many successful product sellers who’ve already made the move today.

The story behind the DEAR Advanced plan and the expanded intuit relationship

Cin7, DEAR Systems, and Intuit share a vision — helping product businesses thrive by moving them to the cloud. We’re passionate about innovating to solve product sellers’ most challenging and important problems.

After working closely with Intuit’s QuickBooks’ leadership team for six months, we’re proud to release the DEAR Advanced subscription plan which includes a complete QuickBooks Online Advanced edition subscription.

New DEAR Advanced plan includes QuickBooks Online Advanced edition

Last week, we announced a new level to our collaboration with Intuit and unveiled the DEAR Advanced plan.  This plan offers multichannel inventory management and QuickBooks Online Advanced Edition all in one system — at a fraction of the cost of an ERP. (At this time, the DEAR Advanced plan is only available in the United States.)

What’s the motivation for this new DEAR + QuickBooks bundle

We are seeing increasing numbers of product businesses moving from desktop accounting and out-dated applications, like Fishbowl, to pure online solutions — like DEAR or Cin7 + QuickBooks Online or Xero. But we know from research and experience that a big factor holding product sellers back from moving to the cloud is the perceived risk of changing systems, and unfamiliarity with online accounting and multichannel inventory management.

The problem is, this  fear of change and hesitancy to move to the cloud is keeping hundreds of thousands of product based businesses from thriving. . With this first-of-its-kind bundle, we’re showing product sellers that DEAR and QuickBooks Online work very well together. Equally importantly, product sellers seeing two leading brands coming together in close collaboration can replace a fear of moving to the cloud with confidence in the software, services, and support of these highly regarded brands.

We want all product sellers to experience incredible gains from moving from desktop to the cloud

Product sellers who move from desktop accounting and desktop inventory applications to online accounting and online inventory management often regret that they didn’t make the move  years earlier, once they’ve experienced the difference.

Several of the amazing gains from moving to desktop to cloud frequently described in detail by our customers include:

  • Sharply reducing errors which are common in spreadsheets, emails, and manual legacy processes that have built up over the years. After moving online, the sharp reduction in manual errors leads to happier customers and employees, along with sizable reductions in the costs of re-working orders.
  • Clearly seeing the big picture for growth which is otherwise obscured by the kind of siloed information systems and outdated information, that lead to knee-jerk decisions. Once product sellers move to the cloud, they tell us that things that had been excruciatingly difficult — like reordering in time for the next batch of production — are suddenly easy.
  • Confidently leaving behind inefficient, time-consuming, manual inventory management and instead investing time into more important and valuable activities. Instead of sending emails to order stock and manually tracking orders and spreadsheets, cloud-based product sellers tell us they now have time for  much more valuable initiatives.
  • Neatly integrating everything from shipping to payments to accounting — something that’s very hard to do with desktop software. Most product sellers running on old desktop accounting and inventory management software are facing escalating supply change troubles, are struggling to add new product lines or sales channels, and can’t connect their systems. This is far from uncommon at long-established companies — but for product sellers running their business with DEAR, Cin7 and online accounting, things couldn’t be more different.

With so much to gain from moving to the cloud, why do product sellers still use desktop accounting and out-dated inventory management?

Many product sellers are fearful of change. They dread replacing their old systems so much that they live on with painful, inefficient, outdated, and -uncompetitive ways of working. Often, it’s only when their situation worsens, or when confidence in moving to online inventory management and online accounting outweighs the perceived risks of changing systems, that people start moving to better technology.

As a result, for Intuit and Cin7 to help product-based businesses to experience the dramatic benefits — even life-changing benefits – of modern accounting and inventory management, we‘ve teamed up to:

  1. make it easier to pick the best online solution to move to, and
  2. increase awareness and confidence in the benefits of moving from desktop to online.

What will the expanded Intuit relationship achieve

We’ve had a great relationship with Intuit for more than 10 years, and thousands of our customers use QuickBooks Online with our online inventory management solutions. So, what’s changed? Our expanded relationship has increased our access and collaboration with Intuit product teams.. What’s more, we’re increasing the collaboration between our support and partner development teams to ensure we always provide the best possible product experiences and services. Much of this work goes on behind the scenes and out of sight. The results of these collaborations will be more frequent improvements to our services and the addition of new capabilities to help product sellers and experts achieve even more.

What should product sellers outside of the United States do if they want to move to the cloud

You should move to the cloud now. You can easily do this by subscribing to QuickBooks Online or Xero. Then, sign up for DEAR or Cin7 separately. It’s that easy. We also have incredible DEAR Experts all over the world who can help you seamlessly move your operations online. Nearly 8,000 product sellers are already enjoying the many benefits of running their business in the cloud. Don’t hesitate — join the many successful product sellers who’ve already made the move today.

FAQs

Will the DEAR team start implementing QuickBooks Online for customers?

No. We do not do QuickBooks Online migrations or implementations. We are referring everyone that purchases our Advanced plan to experts at implementing QuickBooks Online (QBO). We view expert partners as the best option for our customers and are working to certify and add more partners to our Expert Directory.

Can people add-on QuickBooks Online to their existing DEAR subscription?

No. QuickBooks Online Advanced Edition is only available as part of our Advanced Plan. QuickBooks Online Advanced Edition is not available as an add-on to our other plans: Standard, Manufacturing, and Retailing.

Can people pick a different version of QuickBooks than the QuickBooks Online Advanced Edition and get a lower price for the Advanced plan?

No. Our Advanced plan included QuickBooks Online Advanced edition. If you need a less comprehensive version of QuickBooks online, we can accommodate this request. However, there will be no change to the price of our DEAR Advanced plan subscription.

If people want to add QuickBooks Payments, QuickBooks Payroll, or QuickBooks Time to my subscription, who do they buy that from?

The QuickBooks team can help you with adding additional services. Please call their sales team at 800-245-2164.

If people use QuickBooks Online today, can they buy the DEAR Advance plan to get the free QBOA and stop paying for my existing QBO subscription?

No. Our regular plans (Standard, Retailing, and Manufacturing) should be connected to your existing QBO account. We cannot help you move from paying directly to Intuit for your QBO to a DEAR Advance plan which includes QBOA as part of our Advanced Plan.

If I’m a Manufacturer or Retailer and I want to use your Manufacturing or Retailing plans and get QBOA from DEAR as part of my DEAR account, can I do that?

The best way to do this is to purchase our DEAR Advanced plan and add-on Advanced Manufacturing to create your own personalized plan that includes QBOA. Similarly, you can purchase our DEAR Advanced plan and add-on DEAR POS to create your own personalized Retailing plan that includes QBOA.

Will you be offering a  bundle of Cin7 and QuickBooks Online?

Our expanded partnership with Intuit spans all our products. We are learning from the DEAR Advanced plan and will be considering creating a Cin7 bundle later this year.

The #1 secret to becoming a thriving product seller: Hire a Cin7 expert

When Covid-19 struck, companies all over the world felt the blow. Some went under, and some survived. But among these, there was another subset – companies that thrived.

What was their secret?

In late 2021, Cin7 conducted a comprehensive study of over 4,000 etailers and retailers to discover what successful companies did different: a deep dive into the tactics that high-performing product sellers used to increase sales performance during the 2020-21 economic collapse.

One of the standout findings: companies that had hired technology consultants and certified experts to help with implementation and tech stack support tended to experience much more profitability, often up to 50 percent or more.

This finding confirmed something we knew well internally: Cin7 experts help product sellers thrive, even in difficult times. Inspired by this, we’ve just launched an expert directory to make finding the right consultant quick and easy. Any product seller that wants to achieve more can now easily browse through the directory and connect with the expert that best suits their needs. Custom filters within the directory narrow searches by service, budget, inventory solution, location, and scale.

Cin7 experts are specialized partners who are committed to providing resources to help brands, retailers, wholesalers, and manufacturers with a wide range of business needs. Experts can handle anything from data migration, technical training, ecommerce, process development and automation, financial planning – and much more besides.

Whenever a product seller needs financial planning, help implementing a new inventory and order management solution, or assistance integrating it with their accounting software, a 3PL, or online marketplace, they can find the perfect people to help instantly, in the Cin7 expert directory.

Since the inventory and order automation needs of product sellers are often quite different, our Cin7 expert directory gives product sellers hundreds of options to find just the right kind of expert, coach, accountant, or software integrator. There are three different types of Cin7 experts you can find – and many have super powers in more than one area.

1. Agency experts

These experts are magnificent at giving best-in-class advice on the latest and most successful ecommerce and multichannel selling and customer loyalty strategies. Customers whose businesses have reached the point where they can no longer rely on inefficient, manual record keeping and inventory management benefit from a consultant who has studied the various inventory and order management software solutions on the market and can make recommendations based on what sort of business you’re running. Cin7 agency experts are able to administer multiple SaaS products and specialize in system audits, inventory system implementations or migrations, custom integration development, system administration, and technical training for staff and managers. Agency experts can reduce a customer’s dependence on redundant processes and help them to get the most out of their technology investments.

2. System / Cloud integration experts

These certified experts specialize in helping product sellers worldwide manage their inventory, sales, order fulfillment and warehousing. These experts provide their clients superior automation and have incredibly deep expertise at solving the most common and complex software setup, configuration, integration, and optimization problems. Their clients gain superior efficiency and unrivaled capabilities to delight customers and outmaneuver their competitors. These integration experts are a treasure chest of wisdom and experience the product seller can easily tap into to select the best inventory management solution from the top three solutions in the market: Cin7, DEAR, and Cin7 Orderhive. What’s more, cloud integration experts have the experience and knowledge to quickly bring together into one system all of the disparate software programs and sales channels that product sellers need to thrive.

3. Virtual CFO / Accounting experts

Want to make more money? Be more profitable? To sell more effectively? These experts are exactly what you need. They have advised hundreds of product sellers and coached them from low performing businesses into many of the most profitable and successful product sellers. Cin7 business owners who need professional advice to help them decide which investments to make, how to efficiently manage inventory, and run successful businesses need to look no further than the Cin7 expert directory for the top virtual CFOs and accounting experts anywhere.

Since most product sellers are in need of help to organize their technology stack, we’ve included advice to business owners who are looking for a consultant in this area. However, these steps to evaluating technology specialists can be applied to any of the experts described above.

You can learn a lot from how product sellers have engaged with experts by reading about their collaborations in our customer stories. Here are some general tips based on their experience with experts on making the right choice when it comes to hiring an expert coach:

1. Find a Cin7 agency expert,  coach or consultant

If you aren’t tech-savvy, you need to enlist help from an experienced professional who can help you navigate the many costly traps and exciting opportunities of selling in today’s multichannel marketplace. While there is a cost associated with bringing someone on, consider that you’re already running your own experiments every day with your digital advertising, product designs, and shipping. If your coach prevents even one mistake, this will easily cover more than a full year of engagement fees.

2. Ask a Cin7 cloud /systems integrator to review your tech stack and IT team

Request they perform a “tech audit,” and provide a detailed assessment of the strengths, weaknesses, opportunities, and threats (SWOT analysis) of your current approach. Ask them to explain how the current technology will support or hinder your vision for your ecommerce, B2B, and D2C sales channels. This clarity will help you execute a sound overall strategy instead of ad hoc tactics.

3. Hire an in-house technical/IT person to work with your experts to implement the changes that will deliver super-sized outcomes for your business

Your tech coach can help you craft a perfect job description. You could even ask them to help you interview, shape the compensation, and pick the right candidate. Your tech coach can give you the blueprint for an ideal tech stack, but you still need a team to build and run it. You’ll need to combine talents of your own team and your tech coach’s expertise to achieve the greatest, sustainable success.

Pick an expert with experience building great tech stacks for the sales channels you are targeting. Just because a coach has a list of successful D2C sales channel references, it does not mean they will be of any help to you if you need to open up B2B sales channels with self-service options.

Here’s an extensive list of projects that a Cin7 Expert can help with:

  • New system implementations
  • Inventory system migrations
  • Training for staff & managers
  • System audits & changes
  • Workflow design & automations
  • Custom integration development
  • Technology roadmap creation
  • Accounting and bookkeeping
  • Outsourced system administration
  • International expansion
  • Strategic financial advice
  • CFO and controller outsourcing
  • Ecommerce audit & growth
  • Marketing strategy & execution

Are you an expert yourself? To join the Cin7 expert network of professional service providers who enjoy exposure to over 8,000 potential global customers, follow this link and one of our Partner Managers will reach out to you. If you’re a retailer and you’re looking for a certified expert, choose the applicable project criteria in the Cin7 expert directory.

Cin7 Rolls Out the Cin7 Supply Chain App Store

Cin7 this week officially rolled out the Cin7 Supply Chain App Store.

We’ve been developing the Cin7 Supply Chain App Store to make it easier for our customers to quickly and easily set up and scale their Cin7 integration according to their business needs.

The Cin7 Supply Chain App Store is a centralized, easy-to-navigate catalogue of Cin7’s core production, warehouse, POS and B2B capabilities and the 100+ integrations to the popular accounting solutions, eCommerce platforms and marketplaces, retailers, logistics and shipping providers, and sales, marketing and payments applications that businesses use to efficiently sell their products.

“Our goal is to give customers integrated control over inventory across their entire supply chain,” says Cin7 Founder and Chief Architect Danny Ing. “The App Store takes the complexity out of implementing Cin7 to give customers even more time to focus on their core business.”

New App Store Features

Companies don’t have time or resources to spare merging the connections to their sales channels, logistics partners and software solutions they use to produce, store, market and deliver their products.

The Cin7 Supply Chain App Store gives customers the ability to easily incorporate every facet of their supply chain to a single interface that unifies their supply chain operations.

Improved Interface and Navigation

Cin7 customers can easily browse or search for the integrations they need.

Detailed Integration Descriptions

Each App includes details on how that integration works with Cin7 and a link to useful technical documentation.

Click-and-Connect Implementation

When you find the App for the integration you need, simply click-and-connect. The integration will be live and incorporated as part of your Cin7 solution in a matter of minutes in most cases.

Dedicated App Dashboards

Cin7 customers can view their installed apps directly from their central dashboard. And each app includes a dedicated dashboard with reports on sales, orders, and other data to easily monitor performance.

More Apps, More Categories

Cin7 continues to add more integrations across all App Store categories and new categories designed to let Cin7 customers incorporate other solutions they need to manage their supply chain.

Cin7 Debuts Danny Ing’s Founder Story

Every business starts with someone who knew how to bring an idea to life. But like anyone else, you can’t boil down their motives and drives to a single element. Their lives supply the ingredients that make them an entrepreneur.

So, to better understand what drove someone to create a business, it helps to know their founder story. Cin7 invites you to watch Defying the Odds, a short video telling the founder story of Danny Ing.

Defying the Odds, a Founder Story Video

Cin7 is proud to present Defying the Odds. This short founder story video tells Danny Ing’s journey from early childhood in Vietnam to launching a global software company in 2012.

Among Danny’s earliest memories are playing while his mother worked in the fields of their rural village in northeastern Vietnam in the late 1970s.

While his parents’ hard work would later become a source of inspiration, the young family’s fate back then was still uncertain. Consequences of decades of war left many ethnic-Chinese in Vietnam with difficult choices. So Danny’s parents took a risk along with millions of other “boat people”. Many others did not survive their attempt to seek refuge in other nations. Fortunately, Danny’s family defied the odds. In 1981, they gained refugee status in New Zealand. There, they settled in Te Puke, where Danny would spend his formative years.

He absorbed the Kiwi culture, worked in his parents’ restaurant and became a bit of a computer geek. His parents’ hard work and determination allowed Danny to attend University and earn a business degree. From there, he took life step by step to follow his dream, ultimately founding Cin7. “My biggest takeaway from making this movie is in the title,” Danny says. “If I look back to where I came from, a village in Vietnam then a small town in New Zealand, I never would have imagined then being where I am now.” Cin7 hopes you enjoy the video, and that it inspires you to think about your own journey.

Cin7 releases enhanced B2B online store and warehouse management modules

Cin7 is excited to announce the introduction of two new modules that enable product sellers to manage warehouses and sell to online B2B customers.

Today, Cin7 is very proud to announce the release of our all-new, all-improved B2B online store and warehouse management products, included for customers subscribed to our Business subscription plan and higher levels. Warehouse management is automatically included for qualifying customer accounts, which means customers can start using it right away. To add a B2B online store, send a request through Cin7 Connect or through the App Store in Cin7.

B2B online stores — with inventory built in!

Cin7 B2B online stores are a simple, yet mission-critical concept: they’re online stores specifically for your major retailer customers. On-account customers can now enjoy a high-speed online purchasing and checkout experience. And because the store is built into Cin7, their orders flow directly to the branch you choose for fulfillment. B2B online stores offer an amazing shopping experience for your wholesale customers and a time-saving solution to help you grow your distribution and sales to other businesses.

Here’s how it works: Once you give your store a name and URL, in just a few clicks you can set up a B2B online store to showcase particular products, with real-time stock levels, and invite specific customers to start an account for that store. You can repeat these steps to create multiple stores.

Your customers log in, select what they want from the interactive catalog, and purchase. To make it faster, they can re-order products they’ve previously purchased. It means you no longer have to go through time-consuming exchanges with wholesale customers to work out each and every order. When your customers can easily purchase what they want at their price — especially if it’s a routine order — that leaves you more time to develop new business and new customer relationships. And because the B2B online store is built into Cin7, there’s no integration or development work to connect your store with your inventory. It’s ready for you to set up and start selling.

It’s simple, and customers love it. Here’s what businesses who’ve been previewing the new B2B online store have to say:

“For us, the manual entry was the problem, and that’s what Cin7’s B2B Online Store has stopped. And it’s definitely time saved. It’s a brilliant little platform that allows business customers to go on a website, order what they want and… happy days.”

— Daniel David, KAS Australia. Read the full case study

For more information, visit Cin7 Connect

Warehouse management — with inventory built in!

Cin7 warehouse management is a comprehensive, centralized warehouse management product. As a Cin7 product, it seamlessly connects your inventory management to your warehoused products and procedures. If you manage your own warehouse and you need a comprehensive inventory management solution, this is a game-changer.

Warehouse management’s mobile-optimized interface connects inventory, sales channels, and orders to every process in the warehouse. Customers can receive purchase orders into zones and bins, move products into racking locations, pick with printed slips or scanners, and pack products (and there’s an option to print labels if you integrate with Starshipit or Shipstation.). Here’s just some of what you can do:

  • Receive purchase orders,
  • Receive orders and put products into locations,
  • Move orders between locations,
  • Pick orders and assign orders to totes,
  • Pack orders,
  • Create pick groups to organize picking activity,
  • View sales orders in the warehouse,
  • Track incoming orders, shipping deadlines, and picking activity.

A few Cin7 customers have already been test-driving warehouse management features, and the feedback has been great. Here’s what one customer had to say:

“Cin7 warehouse management has been a critical element in our warehouse optimization and expansion strategy. The barcode scanning functionality and informative dashboard have allowed us to reduce the number of errors made and effectively manage team productivity and efficiency. The friendly and intuitive interface has also made it easy to educate and train new team members.”

— Mario Pontes, Warehouse Manager, St. Agni

If you’re a customer already using Pick’n’Pack, a Cin7 feature that a lot of customers deployed in their warehouses, we’re continuing to support Pick’n’Pack so you can continue using it for stock counts.

For more information, visit Cin7 Connect.

We hope you enjoy the new features. As always, we want to hear what you think. Visit Cin7 Connect, or send us an email at feedback@cin7.com.