Efficient stock management is important to stay competitive. Yet, many Indian SME manufacturing companies face challenges due to the lack of good inventory reporting. Without proper inventory reports, these businesses face problems such as unexpected stockouts, excess inventory, and inefficiencies in production planning. All of this leads to increased costs and missed opportunities.
In this blog post, we’ll understand the importance of inventory management software, and inventory reports in optimizing stock management. We will guide you through the key types of reports you should be using, how they can help you streamline your operations and the benefits they bring to your manufacturing business.
Read Inventory vs. Stock: What’s the Difference & Why It Doesn’t Really Matter.
What Are Inventory Reports?
An Inventory report is an electronic or physical document that summarizes how much inventory a company currently has. It can include total inventory counts, best-sellers, and other product information to manage, track, and categorize inventory.
Why Should You Generate an Inventory Report?
Managing inventory is important for profit from manufacturing, wholesale, and retail businesses. Companies can benefit from inventory reporting in many ways like better stock planning, clear tracking, and organized sorting for profitable growth.
What Are Inventory Reports Used For?
Inventory reports manage a company's goods and inventory. They provide a full overview of the stock quantity, value, and location. These reports help firms in making educated decisions about purchasing, production, and sales tactics. In addition, self-report inventory helps to provide better inventory management, smooth operations, and customer happiness.
How to Build a Inventory Reports in 4 Steps?
Here are 4 steps to building inventory reports:
1. Collect Data
Gather detailed information about your inventory, such as item details, quantities, locations, and values. This information can be collected from various sources, like stock records, point-of-sale systems, and barcode scanners.
2. Define Report Parameters
Decide what information you want to include in your inventory report. Item names, SKU numbers, stock levels, reorder points, purchase prices, sales prices, etc. Consider the report's aims and the demands of the target audience.
3. Select a Reporting Tool
Choose a suitable software or tool to build an inventory report. Spreadsheet applications such as Microsoft Excel, Google Sheets, or specialized inventory management project report software can greatly help. Such tools let you easily organize and manipulate data.
4. Formatting and Personalization
Create a layout and format for your report to ensure clarity. Organize the data into logical parts and present the information visually in tables, charts, or graphs. Customize the report to meet your specific company needs.
Types of Inventory Management Reports to Grow Your Business
Here are the types of Inventory reports:
1. Inventory Performance Report
Inventory performance reports detail top sellers, worst sellers, and year-over-year increases. Knowing which products sell well and which sit on your shelf might help you choose how many units/raw materials to order.
2. Inventory Profit Report
SKU profit, listing profit, and trending profit track inventory success. SKU profit reports are the company's main agenda since they show each SKU's genuine earnings. Listing this analyzes your SKU's gross and unit margins and calculates shares per sales channel.
3. Inventory Forecast Reports
An inventory forecasting report estimates the inventory needed to fill future client requests based on your expected sales. These estimations use historical sales data, planned promotions, and external factors to make the most accurate predictions.
4. Stock Valuation Report
Inventory analytics help you manage inventory-related cash flow by tracking your purchases. A value report reveals the overall value of your products at each warehouse and compares inventory volumes.
5. Sales Data Report
A complete sales report helps improve cash flow and accounting operations. Using a sales report, companies can analyze income, discounts, refunds, and taxes for each sales channel.
6. COGS (Cost of Goods Sold) Report
Understanding your company's COGS might assist you in assessing its bottom line. A COGS report can help you price your products, manage taxes, and find unexpected development ideas.
7. Customer Analytics Report
Product-based brands should use customer analytics reports to promote customer loyalty. Customer analytics reporting can provide the lifetime value of returning customers, the greatest spenders, and the most regular and recent customers.
8. Purchase Order Report
You must manage and track incoming inventory and products on your shelves or leaving your warehouse. Purchase order reports show transactional details and product patterns. Thus, a PO report lets you track inventory stock and its arrival at your warehouse.
9. Shipping Trends Report
Shipment trends reporting shows shipment trends and warehousing performance for all sales channels. With this data, you can assess your warehouse's capacity by shipping carriers and rapidly identify areas for improvement.
Read Best Inventory Management Software for Small Business.
Different Types of Inventory Reports to Create
Businesses can generate many inventory reports to gather important information and make the right decisions:
- Stock Status Report
Provides an overview of current inventory levels, including quantities on hand, on order, and available for sale.
- Aging Report
Inventory ageing report in SAP categorizes inventory based on age to detect old or slow-moving items that may require action, such as clearance sales or disposal.
- Stock Movement Report
Tracks the movement of inventory items between locations or departments, assisting in identifying errors, losses, or problems.
- Inventory Valuation Report
Defines the whole value of inventory based on factors such as purchase prices, replacement costs, or market values.
- Sales Analysis Report
This report records sales data to identify top-selling items, slow-moving inventories, and trends to optimize purchasing and pricing strategies.
- Reorder Report
Identifies items that have fallen below reorder points, ensuring timely replacement and preventing stockouts.
- Backorder Report
Lists orders that cannot be completed right away due to low stock, helping firms prioritize restocking and manage consumer expectations.
Read Inventory Management: TCS vs. TranZact Automation Benefits.
Example of an Inventory Report
| Item Name | SKU | Location | Quantity | Cost Price (Rs.) | Sales Price (Rs.) | Total Value (Rs.) |
|---|---|---|---|---|---|---|
| Product A | SKU001 | Warehouse | 100 | 10 | 20 | 1,000.00 |
| Product B | SKU002 | Store A | 50 | 15 | 25 | 750 |
| Product C | SKU003 | Store B | 75 | 12.5 | 22 | 937.5 |
| Product D | SKU004 | Warehouse | 200 | 8 | 18 | 1,600.00 |
| Product E | SKU005 | Store A | 30 | 20 | 35 | 600 |
The following sample inventory report gives firms a clear perspective of the organization’s inventory information.
Get Correct Inventory Reports With TranZact
Inventory reports are important in managing and optimizing a company's stock. They give important information about item quantity, value, and movement, allowing Indian SMEs to make sales decisions. With TranZact’s inventory management software, Indian SMEs can improve processes, and customer happiness, and maximize profits by providing timely inventory data.
Learn How Does TranZact Help You Manage Inventory Efficiently?
FAQs on Inventory Reports
1. Can inventory records help me identify seasonal patterns or demand patterns?
Yes, inventory data can reveal seasonal demand patterns. Businesses can uncover repeating patterns or changes in demand for specific products by analyzing sales data over time.
2. How do inventory reports aid in detecting errors or shrinkage?
Inventory reports can be useful in discovering inventory errors. Businesses can identify problems that may indicate theft, recording errors, or other difficulties by comparing reported inventory amounts with actual counts.
3. Can inventory reports help with warehouse layout and picking process improvement?
Businesses can make informed judgments on warehouse layout, product placement, and picking tactics by analyzing data on item popularity, stock movement, and storage capacity utilization. This optimization improves operating results, decreases picking errors, and speeds up order fulfilment.
4. What role do inventory reports play in sustainability initiatives?
Inventory reports can help with sustainability initiatives by revealing surplus or obsolete inventory. Businesses can take action by identifying slow-moving or out-of-date items. It creates focused sales efforts, giving discounts, or exploring recycling or donation possibilities. Maximum inventory utilization guarantees waste elimination and promotes sustainability.
5. What information should an inventory report comprise?
Items names, SKUs, locations, quantities, cost prices, sales prices, and total values should all be included in an inventory report. Depending on the nature of the business, additional information such as reorder points, supplier details, and item descriptions may be added.
