Reusing Batches
In Pakk, you have the option to allocate incoming products to an existing batch number or assign a new batch number to each lot.
This decision depends on the product types you are dealing with:
Perishable Items: It is essential to track batches and their expiry dates properly for perishable items.
Non-Perishable Items: For non-perishable items, strict batch processing might not be necessary, but still beneficial for internal tracking.
Most businesses handle a mix of product types. Even if you don't strictly follow batch processing for all items in the warehouse, utilizing batches from an admin perspective is beneficial for internal product cost and value tracking.
Reasons to Use New Batch Numbers for Each Lot
Quality Control
Batches provide detailed records for quality control, making it easier to identify and address issues with specific batches.
For expensive items, where each product is ordered individually or the batch corresponds to a single item, the batch number functions as a serial number.
Inventory Management
Batches allow precise tracking of inventory, helping to maintain accurate stock levels.
They facilitate better inventory rotation, ensuring older stock is used before newer stock, which is crucial for perishable goods.
Ease of Use
Pakk supports auto-creation of batches upon receiving goods, reducing manual effort.
Batches can be created quickly in Pakk by selecting items and generating batches.
Accounting Advantages
Batches provide accounting advantages by maintaining accurate records of stock costs over time.
Not using batches can lead to calculating inventory costs based on long-term averages.
Using batches helps keep cost calculations accurate and reflective of actual stock value.
No Overhead
There is minimal overhead in terms of system usage. Batches do not significantly complicate the receiving and tracking processes from the admin user point of view.
Implementation Notes
Initial Setup
Create at least one batch per SKU initially to ensure accurate stock adjustments.
This initial batch setup is necessary regardless of whether batches will be reused or not.
Warehouse Practices
Encouraging proper rotation and usage of batches in the warehouse ensures better inventory management and quality control.
Even if not strictly implemented, maintaining batches provides significant tracking and accounting benefits.
Conclusion
Implementing and using batches in the inventory system is beneficial for maintaining accurate records, quality control, and efficient inventory management. Pakk supports easy batch creation and tracking, making it a practical approach for most businesses.
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