Name : Resham Anand

PRN : 1800102010
Subject : Entrepreneurship Development
School : BBA Logistics & SCM

Skill 1

As an entrepreneur how would you manage the inventory of

unorganised trade and plan efficient cash flow.

Managing inventory of unorganised trade

1. Labels are everything :-

 Labelling your stock for better warehouse organisation? That’s

hardly groundbreaking advice, but even in the modern age, it’s
guidance you should follow. With clear labelling across your
establishment, it’ll be notably easier for your employees to make
their way around and find the products they’re looking for.

 Have you heard of agile labelling? It’s an idea that can really
help take your labelling game to the next level. Let’s say, for
example, that you have a clunky, old printer sitting in an offsite
office that you use for all your printing needs. It can be a real
grind walking to and from that printer (and, likely PC terminal)
to get your labels, but what other option do you have? Well,
portable wireless printers.

2. Invest in warehouse management software :-

 Spreadsheets have faithfully served the organised folk among us

for decades now – they were invented by Dan Bricklin in 1978 –
but, even though they remain the app of choice for finance
 professionals, there’s no need to rely on them when organising
your warehouse stock and inventory.

 So what’s the solution? Warehouse management software.

Purpose-designed applications can help give you unprecedented
control over your inventory, assisting you in organising stock,
letting you know when products are running low, and what your
hottest sellers are. With the right warehouse management
software, you can use barcode scanners and labels to help find
exactly what you need at any given time.

3. Organisation is the key :-

 This might seem the most obvious point of all, but there’s far
more to having an organised warehouse than simply ensuring
your stock is where it should be (though of course, that is pretty
important!). You must remember that this will also help
productivity, as well as saving time, money and increasing
accuracy across the board.

 The first thing to take a look at when organising your warehouse

is the floor plan. What you’re looking for here is maximum
efficiency, and it’s important to consider that your floor plan
should be a living document – that is, editable in line with
changing demand requirements.

4. Automate as much as you can :-

 Some 375 million roles currently carried out by humans will be

fully automated in just over a decade (2030) according to a
report by McKinsey Global Institute. That’s an enormous
number and automating your warehouse will undoubtedly place
 the facility in good stead when it comes to managing stock and
inventory. How? Here are a few ideas.

 Robotic scanners
The aforementioned barcodes will likely have a place in the
automated warehouse of the future. However, robotic scanners can
take the place of human ones – and these will rarely make
mistakes, never become fatigued, never require a break, and never
need to be paid.

 Transport
Forklifts have long been a staple of warehouses up and down the
country, tirelessly hoisting crates, transporting them from one side
of the facility to the other, and carefully putting them down.
However, the one constant here is that forklifts almost always need
a human driver to, well, drive them. Again, these humans require
breaks, sick leave, a salary and they get tired – everything a
machine doesn’t.

 Enter automatically guided vehicles (AGVS). These beauties are

totally automated, and don’t require a driver. Instead, they’re
programmed to traverse around predetermined paths, collecting
items, unloading pallets and doing everything a manned forklift
can – but without the associated labour costs and potential for
mistakes.

Managing Cash Flow

 Cash flow projections for next year, next quarter and, if we're on shaky
ground, next week. An accurate cash flow projection can alert us to
trouble well before it strikes.
 Cash flow plans are not glimpses into the future. They're educated
guesses that balance a number of factors, including our customers'
payment histories, our own thoroughness at identifying upcoming
expenditures, and our vendors' patience.
 Making accurate cash flow projections is detailed knowledge of amounts
and dates of upcoming cash outlays. That means not only knowing when
each penny will be spent, but on what. line item on our projection for
every significant outlay, including rent, inventory (when purchased for
cash), salaries and wages, sales and other taxes withheld or payable,
benefits paid, equipment purchased for cash, professional fees, utilities,
office supplies, debt payments, advertising, vehicle and equipment
maintenance and fuel, and cash dividends.

 We can improve our cash flow by managing our receivables. The basic
idea is to improve the speed with which we turn materials and supplies
into products, inventory into receivables, and receivables into cash. Here
are specific techniques for doing this:
1. Offer discounts to customers who pay their bills rapidly.
2. Ask customers to make deposit payments at the time orders are taken.
3. Require credit checks on all new non cash customers.
4. Get rid of old, outdated inventory for whatever you can get.
5. Issue invoices promptly and follow up immediately if payments are slow
in coming.
6. Track accounts receivable to identify and avoid slow-paying customers.
Instituting a policy of cash on delivery (c.o.d.) is an alternative to
refusing to do business with slow-paying customers.