Diamond industry is still largely run on old-fashioned ways of procurement, production, and sales. In this mode of operations, usually merchants have to suffer big losses due to dead stocks and unsold items. In the diamond and jewelry industry, these dead stocks comprise of pieces which may have gone out of style or out of season and their value depreciates.
For the modern-day diamond traders; however, there are many ways to overcome these challenges. Proper inventory control is the primary need for any diamond and jewelry business to assure that there are not overstocked or out of stock at any given point in time. In this blog, we will discuss about diamond inventory stock management application to see how technology revolutionizes modern diamond trading.
As we can see, effectively managing diamond inventory is critical for the diamond producers, dealers and retailers to track and manage their stocks of gemstones and diamond jewelry. A well-built diamond stock management tool can streamline the tracking and flow of diamond production through retail sales with many advanced features to cater to the specific needs of the diamond industry.
A Diamond inventory Stock Management Application is a computer application meant for diamond businesses to keep track of their stock and automate the trade workflow. Such a system will conduct all inventory functions quickly and easily compared to handling manual ledgers. Diamond stock management systems are very user friendly and also connected over cloud so that one can access it for real-time information from anywhere anytime.
Diamond inventory involves proper and timely tracking and organization of the diamond stock with its details like quality, quantity, pricing, and its current location. Such an inventory helps the producers, retailers, and dealers to get an overview of their present inventory for informed decision making to facilitate timely and profitable operations.
Efficient inventory stock management requires real-time overview of diverse types of stocks and market demands of stock in hand. Knowing this will help to decide the reasonable stock level to be kept to balance the need for excess supplies if any or the need to reduce the tied-up stock. In diamond industry, the diverse categories of inventory stock management may be as below.
This is the stock of diamonds out of mining or procurement and ready to go into production.
Unfinished goods which are in the mining, cutting, polishing, or production stages.
These are value added end products, ready to be sold in wholesale or retail.
Under the main categories, you can further divide stocks into various subcategories according to their value as high, medium, low-value stocks. For small scale diamond businesses, they may also take the approach of perpetual vs. periodic inventory taking.
Also read: Why Diamond Industry Businesses Need App Development?
For diamond producers, dealers, and retailers, effective inventory control and stock management is critical for various reasons as below.
Storage of inventory is a considerable expense in the diamond industry, which varies based on the volume of storage and how fast these items are sold. Storage cost of the left-in-stock items may go up each day, and so setting inventory goals and tracking it with a proper inventory management system can help avoid loss.
A good inventory management practice can ensure positive cash flow. It will help avoid miscalculations and get a real-time view of market demands vs stock to reap larger profits. This way, systematic inventory management help assure a healthy business.
When a business gets into online sales, it is possible that the sales go out of hand and end up in overselling. A real-time inventory management system can help synchronize your inventories across various online and store selling platforms and monitor the stock levels in real-time to avoid disappointing buyers.
Efficient inventory tracking will help you to avoid any adverse risks affecting your business reputation as you can realistically meet the customer demands at any time.
Also read: Inventory Management System Examples & Types
A custom-built Diamond Inventory Stock Management application will have the following essential features.
This module will take care of comprehensive tracking of the diamond inventory, covering all minute details as cut, weight, color, clarity, and certification etc.
Barcode scanning is essential to automate the movement of goods and streamline the data for accurate and real-time inventory management.
This module helps to create and manage purchase and sales orders to facilitate quick inventory updates and seamless transactions.
To give insights to the business decision makers by looking at the analysis reports to know the trends to optimize stock and to make informed decisions.
Along with the in-built modules, a good inventory application should be compatible with other existing systems as accounting software or CRM tools etc.
Also read: Decision Maker’s Useful Guide on Custom CRM Solution
Benefits of an ideal diamonds app include but are not limited to higher efficiency, accuracy, cost saving, better customer service, and compliance with the industry and regulatory standards. Let us explore a few major benefits in more detail.
You will never go out of stock with a Diamond Inventory Stock Management system in place. You know how much of each product is left and at which all stages of the production-sales pipeline they are in. You also get alerts if any item in demand is about to go out of stock or any items being overstocked.
When you can integrate various functions through automation, you can better manage the business. A diamond vault application stays updated automatically and can manage various tasks at a time to provide actionable insights to the decision makers.
Diamond stock management application will give you insights as to which products are in demand, and which are stagnant. You can strategize your stocks to satisfy the seasonal demand of customers and get rid of unnecessary items being stocked.
Serving to the exact needs of the customer right on time can be assured with an on-demand inventory stock management application. You can also track customer purchase history to improvise the sales and marketing efforts and offer a better customer experience.
Also read: Best ERP Solution for your Diamond Trading - Ultimate solution
Inventory management software allows people at each level to input information about inventory items as product name, description, quantity, price, and other relevant details. Once done, the application continuously tracks the changes at inventory levels using barcode scanning, updates, and integration with the POS. Inventory management app also offers analysis of inventory data, generating stock reports and sales trends. All these help businesses to make informed decisions about production, purchase, stocking, and sales.
Traditionally, the diamond industry maintains stock inventory manually in ledgers or Excel sheets. Now with the advent of inventory management technology applications, it is done more accurately and efficiently through automation including data entry, tracking, and analysis of the inventory levels in real time. On a Diamond Stock Inventory Management Application, the users can access inventory data from anywhere anytime through a user-friendly interface.
Unlike the age-old practice of manual inventory tracking with pen-and-paper or excel sheets, there are many modern and automated inventory tracking mechanisms that are used nowadays. For example, barcode scanning technology allows to record, track, and automate inventory tracking on each item with accuracy. Inventory management software features user-friendly interfaces to enter data and maintain accurate inventory records.
You can track inventory automatically with the help of automation technology tools. Barcode scanning systems can automatically update the inventory records as each item is scanned at various stages of inventory recording. RFID technology is also used to attach RFID tags to each item for real-time inventory tracking. inventory management software has many automation features like real-time updates and automatic reorder triggers.
From what we read above, one can see that effective diamond inventory stock management is critical for diamond producers, dealers, and retailers to optimize their business operations, improve efficiency, and assure customer satisfaction. By utilizing a high-performing Diamond Stock Management Application, businesses can streamline their processes, maintain real-time records, avoid scope of stock misjudgments, and take informed decisions to assure success in the highly competitive diamond industry.
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