Purchase management is one of the most important processes in manufacturing businesses. It makes sure that the raw materials are purchased on time to avoid disruptions in production. It also helps you use money smartly to increase the productivity and profitability of your manufacturing businesses.
Many software are available to effectively manage purchases, but two well-known purchase management software are Tally and TranZact. In this blog post, we will learn about the features and capabilities of both Tally and TranZact and find out which one is better for purchase management.
Overview Of Purchase Management
Purchase management is a systematic process of buying raw materials, machinery, and other equipment in manufacturing businesses. It focuses on the whole purchasing cycle, such as identifying purchase requirements and suppliers, making purchase requisitions and purchase orders, and payments. An effective purchase management system makes sure that you purchase high-quality products at the best cost. It also helps you improve relationships with your suppliers.
Using purchase management tools is helpful to reduce human errors and save time. It allows you to coordinate with other departments, such as inventory, production, procurement, and sales in your manufacturing business. It further allows you to keep records of your previous purchases and analyze them to make better purchasing decisions.
Importance Of Effective Purchase Management For Businesses
The right purchase management is important to increase the productivity and profitability of manufacturing businesses. Here are some reasons for businesses to use effective purchase management.
- It makes sure that the required raw materials are available to achieve your production targets.
- It helps you select the right supplier to buy your products.
- It increases the transparency of the terms and conditions of the procurement to avoid misunderstandings.
- It helps you buy your products at reasonable costs and improves your financial management.
- It helps you improve order fulfillment and customer satisfaction.
- It helps you make informed decisions and use your money wisely.
Introduction To Tally
Tally is one of the widely used enterprise resource planning ERP for accounting, inventory management, and other purposes. Its accounting and financial management capabilities offer effective purchase management solutions for a wide range of industries. It comes with all the important features that are often required by small, medium, and large businesses to properly manage their resources.
Overview Of Tally Software
Tally software is used by different types of organizations, such as manufacturing businesses, retailers, banks, hospitals, and schools. It helps them manage day-to-day transactions with accuracy. You can implement Tally in your business for purchasing inventory management, calculating the salaries of your employees, and complying with GST regulations. Tally also allows you to access data from different locations to manage your business smoothly. It further allows various departments in your business to interact and make informed decisions to increase productivity.
Tally's Key Capabilities In Purchase Management
Tally is a very helpful tool for reducing errors and improving efficiency at your manufacturing company. Here are the key capabilities for purchase management in Tally.
- It can track your purchase requisitions, purchase orders, and invoices.
- It can keep records of various suppliers.
- It improves communication between departments that are involved in the purchase process.
- It tracks financial transactions and helps you manage due dates.
- It simplifies complex calculations, including GST.
- It can provide you with purchasing reports to analyze and improve your decisions.
Key Features Of Tally For Purchase Management
Tally can improve the overall purchase cycle, from the identification of the product requirement to the payment of the received products. Here are the most useful Tally features for purchase management.
- It helps you track your inventory and identify the required items to manage stock levels.
- It automatically updates the inventory levels when new stocks are received.
- It can alert you when the products are reaching minimum stock levels.
- It helps you buy your products with the required specifications and quality.
- It allows integration like email, banking, and barcode integration to speed up purchase processes.
- It helps you manage your financial transactions, including accounts payable or accounts receivable.
- It maintains a record of all the activities and audit trials to increase efficiency in purchase management.
Introduction To TranZact
TranZact is a simple yet powerful purchase management software designed especially for Indian SME manufacturing businesses. It offers all the required features to simplify processes from customer enquiry to product dispatch. It offers customizable features and allows easy integration with other systems. TranZact is suitable for manufacturing businesses that need less implementation time.
Overview Of TranZact
TranZact is a leading software choice for Indian manufacturers. It helps manage and simplify various operations, such as inventory management, and production planning. Its record-keeping features help predict accurate demand forecasts and improve production planning.
TranZact helps you keep an eye on your stock levels and allows you to automatically reorder the required products to save time. It further helps you maintain all transaction records to improve financial management. With TranZact, you can improve communication between in-house teams, suppliers, and customers to order fulfillment on time.
TranZact's Key Capabilities In Purchase Management
TranZact minimizes human errors and speeds up the purchase processes in manufacturing businesses. Here are the key capabilities of purchase management in TranZact that help you increase productivity.
- It allows you to set reorder points for restocking automatically.
- It provides MRP reports to improve your production planning and manage your budget.
- It tracks your purchase requisitions, purchase orders, and invoices to improve transparency.
- It helps you analyze customers’ preferences and market trends for demand forecasting.
- It allows you to record many suppliers' details to avoid disruption in the supply chain.
Key Features Of TranZact In Purchase Management
The flexibility of customization in TranZact helps you fulfill your unique purchase requirements. Here are the most useful TranZact features that save you time and resources in purchase management.
- It simplifies the process of making purchase orders and getting approvals.
- It tracks your stocks and alerts you when reaching minimum stock levels.
- It automatically updates stock levels when you make purchases.
- It provides the recent and previous procurement details for choosing the right supplier.
- It tracks the entire purchase process to improve transparency and avoid misunderstandings.
- It allows easy integration with tools, such as Tally, Zoho, and Busy, to simplify processes, purchases, and financial management.
- It provides detailed purchasing reports and previous transaction details to help you make informed decisions.
- It provides high-quality security to store your data.
Purchase Management Software Comparison: Tally Vs. TranZact
Both Tally and TranZact offer various features and advantages, and you should analyze them before choosing the best purchase management software. Here is a quick comparison between Tally and TranZact that will help you make your decision-making easier. You can prefer Tally if your business aligns with the following activities:
- If you own a large business.
- If you are having problems in accounting and financial management.
- If you need to integrate banking systems to manage your business.
- If you order your products from international suppliers.
- If your business is involved in multi-currency transactions.
You can choose TranZact if your business aligns with the following:
- If you own a small or medium manufacturing business.
- If you need to manage different types of raw materials for demand management.
- If you need to create a multi-level bill of material.
- If you want to reorder your stocks automatically to avoid stockouts at multiple warehouses.
- If you need MRP reports to improve your production planning.
- If you want to integrate tools like Tally and Zoho with your purchase management software.
Factors To Consider When Choosing Between Tally And TranZact For Purchase Management
Various factors can affect your purchase management software selection. Here are some of them. Analyze your business and purchase requirements. If you business is a manufacturing business or an SME, TranZact is a better option. This is because it is especially made for thai segment.
Learn about the capabilities and features of both Tally and TranZact. Try their free versions to see which user interface is better for your team.
Find out the integration capabilities of both software. Check if your required software integrate with them. Compare the full implementation time with minimum downtime. TranZact can be implemented in less than 14 days with minimum business disruption. They give you one point of contact that stays in touch throughout and after the implementation process. Analyze the cost of implementation and maintenance of both software. TranZact has zero implementation cost. They also have 24*7 lifetime chat support.
Improve Purchase Management Of Your Manufacturing Business With TranZact
Effective purchase management is necessary for manufacturing businesses to use money wisely and improve productivity. TranZact offers all the required features you need to manage your purchases effectively. It is clear in our comparison between Tally and TranZact that you should choose TranZact.
If you are running an SME manufacturing business in India, TranZact will fulfill all the requirements of purchasing and inventory systems. It will also help you in production planning, MRP, and many other operations.
Implement TranZact in your business today to improve your purchase management and overall profitability of your manufacturing business.
FAQs
1. How does purchase management software differ from inventory management software?
Purchase management software focuses on the process of procurement, such as making purchase requisitions and purchase orders, supplier identification, payment, etc. Inventory management software focuses on inventory and stock levels of all the products to avoid situations like overstocking or stockouts.
2. What are the advantages of TranZact compared to other purchase management solutions?
Multi-level bill of material and an easy-to-use interface are the main advantages of TranZact. This reduces the need for other purchase management software to run a manufacturing business smoothly.
3. Is TranZact suitable for small businesses or larger enterprises for purchase management?
TranZact is more suitable for small businesses for purchase management as it is specially made for Indian SMEs and has the exact required features.
4. What factors should businesses consider when choosing between Tally and TranZact for purchase management?
Factors that businesses should consider when choosing between Tally and TranZact purchase management tools are as follows:
- Ease of use
- Customizable options
- Integration capabilities
- Cost of implementation
- Maintenance cost
- Data security
- Customer support
5. How can purchase management software improve efficiency?
Purchase management software speeds up tasks, reduces human errors, and makes sure that the required raw materials are available to avoid disruptions, all of which contribute to improving efficiency.
6. Does either Tally or TranZact offer mobile access or cloud-based solutions?
Yes, TranZact offers cloud-based solutions with mobile access to manage your business from different locations and improve productivity.
7. Which industries benefit most from Tally or TranZact for purchase management?
Small and medium-sized manufacturing industries benefit the most from TranZact, while large enterprises benefit more from Tally.
