Title: The Leftovers
Created: Apr 30, 2014
Description: How are you keeping track of your scrap, remnants and unused goods? Glad you asked, because Fishbowl CMO Kirk "Mr. Klean" Tanner is full of solutions.
Welcome to Whiteboard Wednesday, I’m Kirk Tanner, Chief Marketing Officer at Fishbowl, and today we’re going to talk about an issue that manufacturers have to deal with all the time. It’s called: Leftovers.
In the manufacturing process, when manufacturers make something, they always have these leftovers, and they have to make a choice of what they’re going to do with those leftovers. There’s three basic things that can be done with these leftovers.
The first one is, if it’s something that they can reuse in a future manufacturing process, they can choose to return that to their inventory.
The second one is, it might be just literally scrap. It has no usefulness. And so they can choose just to expense it, and then throw it away.
The third one is, regardless of whether it could be returned and used, or thrown away, you just choose to add it to the cost of the final product that you’re manufacturing.
Either of these three, when you choose these, you need to update your accounting to make sure that you’ve accounted for the cost of these leftovers.
Now if you are running your business, and your entire process is a manual process, that means that somebody, when they make these decisions, has to go and update the records. However you do that manually, you’ve got to have somebody who’s following through to make sure that everything gets updated, and your accounting package gets updated, so you know what got returned, expensed, or added to the cost of the product. Okay?
With an inventory solution, like Fishbowl Manufacturing, we optimize this process to make it a lot easier, because we integrate seamlessly with Quickbooks.
To return something to assess, you simply barcode that item, or scrap, or whatever it is, and you click the button to return it to assets and it just is put back on the shelf, exactly where you got it, or you may choose to put it in a different location, but it goes back into inventory.
Here [Expense], you just do the same thing. You scan it, expense it, that’s a choice you have in Fishbowl Manufacturing, ,and then throw it away. Your accounting is updated.
Here [Add to Cost], you do the same thing. Scan it, and you’re just going to choose to add it to the cost of the final product, and when you do that, again, because Fishbowl is seamlessly integrated with Quickbooks, it all gets updated in Quickbooks dynamically.
If you’re doing this manually, obviously there’s a chance for a lot of human error and mistakes. With a software solution like Fishbowl, we’ve reduced those mistakes because it’s happening in the time you make that choice. Dynamically the software is updating what’s going on with the inventory, and accounting is getting updated at the same time.
With that, you get good data, and with good data, you have the ability to make some good business decisions.
So look at how you’re handling your leftovers. If you’re doing it manually, consider a software solution like Fishbowl Manufacturing that will help you speed up the process, be more accurate, have good data, and make good business decisions.
That’s it for this Whiteboard Wednesday, join us again next week. Thanks.