To streamline production and maintain constant growth and profitability in businesses, an effective inventory management solution is required at your company. The two popular inventory management solutions that SMEs often prefer are TranZact and Tally. Each platform offers unique features that help manage and automate operations like production scheduling, inventory tracking, supply chain management, and many more. In this blog post, we will compare TranZact vs Tally in every aspect.
It will help you find the right automated Inventory management system for your manufacturing business.
Overview Of Inventory Management
Inventory management is the process of managing raw materials, tracking stocks, maintaining records of sold goods, and more. SMEs and big enterprises need effective solutions to manage their inventory. With the best inventory management software, they can automate warehouse management, order processing, and store data for finished goods and sold-out items.
Its goal is to avoid stockouts, dead stock, or stock overflows. Manufacturing SMEs use various methods like FIFO (First-In-First-Out), LIFO (Last-In-First-Out), JIT (Just-In-Time), and weighted average to effectively manage their inventory.
Common Challenges Faced In Inventory Management
Managing inventory can be difficult for manufacturers due to many challenges. These could be demand forecasting, inventory tracking, warehouse management, etc. Let’s learn some common inventory challenges that might be preventing you from improving your supply chain and meeting market demand.
1. Poor Demand Forecasting
Lack of demand forecasting makes it challenging to determine the inventory level. This can happen due to fast changes in customer demand, inaccurate data analysis, and unorganized order management. Without proper forecasting, businesses can suffer from both overstocking and understocking, impacting their ability to meet customer demand efficiently.
2. Overstock And Understock
Without proper demand forecasting, SMEs can suffer from overstocking. It happens when businesses hold excessive inventory in the warehouse. Poor forecasting can also result in understocking when inventory levels are insufficient to meet customers' demands.
3. Improper Inventory Tracking
Many manufacturing businesses still use manual methods to track inventory levels. It can cause errors in data entry and is also time-consuming. Choosing the best small business inventory management solutions can provide a centralized dashboard to track your inventory in real time.
4. Inefficient Warehouse Management
Companies managing multiple storage locations are unable to utilize the spaces and identify the underperforming inventory based on the location. An inventory management software may have modules that help with Warehouse Management.
5. Manual Documentation
Managing inventory with manual paperwork can cause errors and can be time-consuming in the approval process. Implementing the best inventory management software can automate accounting, data entry, BOM (Bill Of Materials) generation, approvals, and many more documentation processes.
6. Inefficient Order Management
Inefficient order management is another common challenge. It affects inventory levels due to issues like overselling or underselling. Implementing the right inventory management solutions can streamline order processing. It will also help businesses analyze historical data and seasonal trends to predict accurate customer demand.
7. Poor Communication
Manufacturing SMEs often face problems in collaboration and communication with various departments of the organization. It can create difficulty in understanding the inventory trends, sharing information, and finding ways to improve them.
Introducing TranZact
Managing inventory is one of the most challenging tasks faced by every manufacturing business. TranZact is one of the best inventory management solutions. It helps to digitise all manufacturing processes from enquiry to dispatch. TranZact inventory management software can help you automate the inflow and outflow of the product and achieve stock accuracy.
Implementing TranZact in your manufacturing business will help you to calculate the real-time valuation and track and download the entire stock movement. It also provides a centralized dashboard where you can get real-time visibility of your stock age. You get 15+ types of automatic alerts and a barcode tracking system to effectively track your inventory level. TranZact integrates with MS Excel, Tally, and ZOHO. This makes accounting and record-keeping easy.
Introducing Tally
Tally is an ERP (Enterprise Resource Planning) software that offers multiple unique functionality for accounting for different types of businesses. Its latest product is TallyPrime, which allows businesses to fulfill accounting needs like invoicing, reporting, inventory management, and many more. SMEs can also have effective inventory control in Tally by managing multiple product lines and categorizing them into groups, batches, and locations.
TallyPrime’s manufacturing journal allows to record the inventory in real time, track the procurement cycle, and access details of finished goods. Its effective BOM (Bill Of Materials) creation features allow you to define the required raw material, assemblies, parts and components, and quantity. Tally inventory management solutions also contain multiple stock valuations that help to identify the performing and non-performing inventory in the warehouse.
Feature Comparison: TranZact Inventory Vs. Tally Inventory
TranZact and Tally in inventory management are two popular names with unique features specially designed for SMEs. TranZact is a one-stop solution for Indian SMEs to manage their inventory. Tally inventory management software is designed to streamline the financial process. Let’s have a detailed feature comparison to choose the best option for your manufacturing business.
| Features | TranZact | Tally |
|---|---|---|
| Modules | Inventory Tracking Production Planning Multiple Warehouse Management MRP (Material Requirement Planning) Multi Level BOM Order Management Barcode Batch Tracking | Sales And Purchase Management E-Way Billing Reporting Cash Flow Management Inventory Tracking BOM Creation Multiple Stack Valuation Manufacture And Expiry Date Management |
| Deployment | Windows MacOS iOS Android | Windows |
| API Integration | Tally ZOHO Busy ERP AfterShip Google Sheet | Excel |
| Internal Communication | Gmail | Not available |
| Customer/Vendor Communication | Gmail | Not available |
Pricing: TranZact Vs Tally
TranZact and Tally each provide four plans for manufacturing SMEs to effectively carry out their inventory management. Let’s compare their prices based on the features they offer in their plan.
TranZact
TranZact is a cloud-based inventory management software that offers a monthly subscription plan. Subscription plans like Micro Plan, Small Plan, Medium Plan, and Enterprise Plan, M.S.M.E. in short, can provide effective Inventory control in TranZact for SMEs.
| Plan | Micro Plan | Small Plan | Medium Plan | Enterprise Plan |
|---|---|---|---|---|
| Features | Inventory tracking Stock History Advanced lead management 10+ reports Supports up to 5 users | Everything in the Mirco Plan Delivery and payment reminder Multi-level BOM creation Tally, Busy, and ZOHO integration 15+ automatic alerts Supports up to 5 users | Everything is a Small Plan E-invoicing and multi-currency support Inventory aging and MRP Multi-step production Access management 65+ reports and document approval Supports up to 10 users | Everything in the Medium Plan Easy Easyecomm integration Batch tracking (Barcode) Store-level permissions and IP Whitelisting Google Sheets MIS integration supports at least 15 users |
| Price | Available for free | ₹3,999 /Per Month (Billed Yearly) | ₹9,999 /Per Month (Billed Yearly or Quarterly) | ₹29,999 /Per Month (Billed Yearly or Quarterly) |
Tally
Tally is an ERP software that offers four plans that include Silver Rental, Silver, Gold Rental, and Gold. Let’s find out the features of inventory management in Tally and the prices in detail.
| Plan | Silver Rental | Silver | Gold Rental | Gold |
|---|---|---|---|---|
| Features | Single user edition For Standalone PCs | Single user edition For Standalone PCs | Unlimited multi-user edition For multiple PCs on a LAN environment | Unlimited multi-user edition For multiple PCs on a LAN environment |
| Price | ₹750 per month, excluding 18% GST (INR 135) | ₹22,500 (Perpetual), excluding 18% GST (INR 4,050) | ₹2,250 per month, excluding 18% GST (INR 405) | ₹67,500 (Perpetual), excluding 18% GST (INR 12,150) |
TranZact Vs Tally: Which Is The Better For Inventory Management
Both platforms have unique features in terms of managing inventory and other business operations. TranZact is one of the best inventory management solutions for manufacturing SMEs that has features like inventory tracking, warehouse management, automate procurement life cycle, and many more. Tally is best suited for big enterprises that need big capital to install expensive infrastructure like hardware and servers and hire experts to manage inventory.
If you are one of those SMEs looking for effective inventory tracking software with unlimited features, then TranZact is for you. A SaaS (Software as a Service), that allows easy access to various features like automating inventory tracking and streamlining the supply chain, e-invoicing, e-way bill, and BOM creation using a single device.
FAQs
1. What is the best software to keep track of inventory?
TranZact is the best software to keep track of inventory due to features like real-time inventory tracking, multiple warehouse management, MRP, order management, barcode scanning system, and many more.
2. Can I use Tally for inventory management?
Yes, you can use Tally for inventory management; however, the software is best suited for accounting purposes.
3. How to track inventory in Tally?
You can track inventory in Tally by going to "Gateway of Tally," selecting "Stock Summary," and press enter to display all the reports along with a list of stock items. Alternatively, press Alt+G, type "Stock Summary," and press Enter to display the same information.
4. What does a TranZact inventory management software do?
TranZact inventory management software helps improve your stock level and maintains the right balance between supply and demand.
5. What are the benefits of inventory management software?
The benefits of inventory management software are:
- Real-time inventory tracking
- Automate manual task
- Greater visibility of data and analytics
- Improved forecasting
- Data-driven decision making
- Multiple warehouse management
- Inventory optimization
- Better utilization of space
- Timely order fulfillment
6. Which inventory management system is best, Tally or TranZact?
TranZact is the best inventory management system for manufacturing SMEs as it is a cloud-based software that requires fewer resources to install than Tally.
