What makes Jewelry Inventory software such a crucial part of running businesses in this industry?
Inventory management is a critical aspect of any business that plays a pivotal role in revenue optimization. Proficient inventory management serves to mitigate overstocking and the costly burden of excess inventory. It also safeguards against the pitfalls of overselling or underselling incase you underestimate your inventory, which can erode customer loyalty. In the jewelry industry, inventory management challenges stem from the intricacies of both input and operational processes, affecting jewelry makers, sellers, and retailers alike. Given the significant capital invested in raw materials and inventory products within this industry, the importance of maintaining an optimal inventory level cannot be overstated.
In today’s business landscape, jewelry companies have various tools and strategies at their disposal for inventory management, including the utilization of technology, the implementation of practices such as forecasting and quality control, and the application of data analytics. One of the most efficient ways to manage jewelry production costs is by employing dedicated inventory management software. A noteworthy example in this field is EMERGE, an all-encompassing jewelry inventory software solution. It’s worth noting that Orbis Research has recently ranked EMERGE App as the leading choice in the realm of jewelry inventory software. However, it is important to recognize that there are businesses, particularly newly established or smaller jewelry makers, which still rely on manual methods or use software that lacks customization tailored to their specific business operations. In such cases, generic jewelry inventory software may not provide the nuanced inventory and operational management required. In the following sections, we will delve into the inventory management challenges specific to the jewelry industry and explore how jewelry retailers and manufacturers leverage jewelry inventory software to optimize their business operations and, ultimately, revenue.
How Jewelry inventory software manages your raw material?
With producers as artisan jewelry makers, boutique jewelry designers, and fine jewelry manufacturers, effective raw material management is a critical factor that directly impacts their profitability. Maintaining a balanced supply of raw materials is imperative; it should be sufficient for production needs while avoiding excess or shortages. Given that these valuable materials encompass precious metals like gold, silver, platinum, along with gemstones and beads, which represent a significant portion of the capital investment, diligent oversight of both quality and quantity in storage is essential to ensure smooth manufacturing processes.
Jewelry inventory software offers a practical solution, allowing users to seamlessly create, categorize, and track their raw materials in real-time. Notably, any adjustments made to raw material quantities are promptly reflected with the latest market prices, facilitating precise cost management. Furthermore, jewelry inventory software provides an invaluable overview of the current raw material inventory, enabling users to estimate and evaluate their potential raw material inventory with the least capital commitment. Below, we outline the capabilities of EMERGE- our jewelry inventory software that empower jewelry professionals to enhance your operations and profitability.
1. Add input products as raw material in EMERGE
In the module Product of our jewelry inventory software has Raw Materials will let you enter the full information about materials you need. Entry information as name, SKU code, colors, and sizes are used in producing jewelry. Here you will describe the quality of raw material and add the real image of these things.
When dealing with a particular product, such as a classic necklace, you have the option to select “Does this have raw material?” to input data pertaining to the necklace you intend to create. This feature allows you to specify the essential raw materials necessary for the necklace. In the case of this necklace, these crucial components include cotton twine, beads, and aluminum. The most important is the need to provide precise information to EMERGE regarding the quantity of each raw material required for the production of a traditional necklace. This information is pivotal for cost calculations and maintaining accurate inventory records.
2. Tracking your raw material in real time
In any business, providing swift and responsive service to customers is a must for ensuring their satisfaction. Jewelry inventory software, with its real-time inventory tracking capabilities, facilitates this essential customer-centric approach. With this software, you can promptly ascertain whether you have sufficient raw materials on hand for production, thus preventing unnecessary waste and ensuring the efficient use of resources for each project. Additionally, it serves as a safeguard against errors in overestimating inventory quantities, preventing the risk of overselling to your valued customers.
Synchronize online inventory and in-store inventory
A significant challenge in the jewelry industry is how to maintain accurate online inventory and sync it with in-store inventory. This process is complex but essential to prevent both underestimation and overestimation of your inventory, thereby guaranteeing product availability for customers. Because of the increasing of e-commerce and online sales, the number of information is huge in each platform your business is in and there would be absolutely mistakes in collecting information and synchronizing progress. Jewelry inventory software serves as an effective solution to mitigate these challenges by substantially reducing errors, including those arising from human oversight, and by harnessing capabilities that surpass human capacity.
Our jewelry inventory software – EMERGE offers a streamlined solution, empowering you to expand your product reach across multiple online platforms with ease. An exceptional feature is the real-time synchronization of your inventory; as soon as an order is placed, your inventory updates instantly. This proficiency is pivotal in upholding customer satisfaction, which plays a pivotal role in nurturing and fortifying your brand’s reputation within the jewelry business. Ensuring that your products are consistently accessible is a proactive strategy to deter customers from switching to alternative brands. The user-friendly EMERGE platform provides you with the tools to effectively manage and control your inventory, as well as optimize your cash flow, ensuring the sustenance and success of your jewelry business.
Add-on features in Jewelry Inventory software create a full management package for Jewellers
Inventory management for jewelers isn’t just about managing raw materials and finished pieces. Modern jewelry inventory software, such as EMERGE, keep track of your sales orders and purchases too as finished goods make their way through your workflow. Here are some deeper features that can help jewelry makers focus on their craft by increasing operations efficiency and smoothing the workflow.
1. Multi-matrix product variants
If you have a range of pieces offered in various precious metal finishes or gemstones, then you have product variants. Ready-to-sell pieces may come in silver or gold variants. Emeralds might be the choice of semi-precious stones. Others might prefer rubies or topaz to match their birthstone. With various product permutations and combinations, you need to keep track of the raw materials that go into each finished piece, which can be efficiently managed with the assistance of jewelry inventory software.
With many variations, including color, material, size or shape. The barcode system in our jewelry inventory software will categorize your products into as many product lines as you want. On the other hand, it helps speed up your operations when selling products and updating information about that order in jewelry inventory software just by scanning.
2. Flexible units of measurement
In the art of crafting jewelry, every raw material comes with its own unique unit of measurement. Beads are typically supplied in small sacks of assorted sizes, while twine and cords are wound around spools and priced per foot. Precious metals, often provided in sheet, strip, and foil forms, are gauged in inches, and coiled metal wire is also sold by the foot. Furthermore, casting grains, vital for the smelting process, are frequently measured in troy ounces.
To effectively manage these different units of measurement, jewelry inventory software can be an invaluable tool, ensuring seamless organization and control of your raw materials. Offering a variety of measurements, EMERGE can allow you to choose individual measurements for each material. This action can make it easier to calculate later when you need to see how much you spent on raw materials according to various raw materials.
3. Simple manufacturing
Using EMERGE App you can issue a production order for a traditional necklace, for example. When the final piece is produced, the raw materials that went into making the necklace are automatically deducted. Also, the finished necklaces are added to the final inventory. So, the stock levels of raw materials and finished goods are updated all the time in jewelry inventory software where you can track and check anytime.
4. Issue a production order to make the final product
In EMERGE App we create a production order for the number of necklaces required. We’ll go with 10 necklaces for this example. Thus, a finished product quantity of 10 means that your production order will use 20 feet of cotton twine along with 200 beads and 50 ounces of aluminum. This is proportionate to the raw materials needed to make one traditional necklace.
When you finally issue this production order, the jewelry inventory software will deduct the quantities and amounts used from the stock of beads, twine, and aluminum. The balance of the raw materials stock is how much you have left. The physical inventory level in EMERGE will have another 10 traditional necklaces added to it.
5. Returns and Exchanges
Similar to the apparel industry, in the Jewelry industry, customers also have the right to exchange and return goods. Customer satisfaction becomes an important aspect of running a business. Use jewelry inventory software to increase customer satisfaction, why not? In EMERGE software, we provide you with the Exchanges and Returns module that allows you to freely change product status when customers need to exchange or return sold products. If an invoice has been issued before return, a credit note tagged to the invoice will be automatically issued.
We’ve covered how to issue production orders for jewelry pieces. But how about keeping track of their production costs in jewelry inventory software as well? Tracking production costs is critical for accounting and financial reporting for your business. In EMERGE, you enter the cost per unit, the landed cost per unit, and production expenses per unit for production orders. Explore more on our website here.
Jewelry makers and sellers nowadays are facing with many challenges come from their own operation, market competitor or customers. To overcome these challenges, jewelry businesses can invest in technology, implement a robust jewelry inventory software, priotize security, stay informed about industry trends, and maintain transparent and ethical practises in sourcing and selling jewelry. Additionally, providing excellent customer service and building strong brand reputation are essential for long term success in the jewelry industry.