Manual data entries and other repetitive everyday tasks can be extremely tedious, boring, and inefficient. Despite that these types of tasks make you sleepy, they also waste valuable time and resources while cutting down your…

As Investopedia defines, the term inventory is used to describe goods and raw materials available for sale or available to be used to produce goods for sale. It is of the most crucial assets that…

Technology is ruling all industries of the modern world. Its benefits are countless – from time-saving and resource optimization to errorless operations. Wholesale and retail industries are not exceptions. Companies develop strategies and utilize resources…

Pricing is a strategic issue for any business operating in a modern competitive market. Setting the right price is one of the major issues that each company has to solve. Knowing how to deal with…

As defined by Investopedia, Days inventory outstanding (DIO), also known as Days Sales of Inventory (DSI) and Days in Inventory (DII), is a financial ratio used to measure the average number of days that a…

Almost every product that we get from the modern marketplace has packaging, be it food or beverage, technology, cosmetics, medicine, clothes… basically everything.   The primary purpose of packing was aimed for the convenience of…

Minimum order quantity (MOQ)   What is the minimum order quantity (MOQ)?   The minimum order quantity (MOQ) is the lowest number of inventory units the supplier sets for the buyer to purchase at once….

What is the order to cash (O2C) process?   The order to cash process is the complete order processing cycle run by a business or a company. The process begins from the very moment the…

What is inventory tracking?   The answer to “how to keep track of inventory?” refers to managing the quantity of the goods purchased and sold by the company throughout the business operations.    Whether you…

What is inventory?   Inventory is an essential component of every growing business. It includes the raw materials, the work-in-process goods, and the finished goods. As all of these assets are convertible into cash within…

Back in 1906, Italian economist Vilfredo Pareto found out that 20% of the Italian population owns 80% of the land. His findings became applicable for many fields and scenarios, starting from gardening to economics and…

Profit margin is one of the profitability measures of companies performance. It represents what part of a company’s sales turns into profits. In other words, it indicates a percentage of income from a dollar of…

Business executives sometimes take purchase orders as an unnecessary effort. They feel like verbal agreements and deals are reliable in business relations, including purchasing processes. However, that strategy is a big NO. Purchases are the…

Inventory carrying cost is an accounting term used to refer to the sum of all business expenses that occur while holding and storing unsold goods. Those costs include material handling and transportation, warehousing, insurance and…

According to the US GAAP (Generally Accepted Accounting Standards), manufacturing costs are the sum of direct labor costs, direct material costs, and manufacturing overhead costs. Therefore, you might assume, direct labor and material costs are…