![]() The Impact of Unit Costing on the Financials They might have a good working knowledge of how to properly record unit costs into the accounting system, negotiate with vendors, monitor SKU level product performance, but what about when it comes to managing a team on the warehouse floor? Employees in these positions add value to your company in different ways. You can’t expect your warehouse manager to know everything about recording inventory if they have no formal training on recording costs.įor example, your warehouse manager might be great at getting orders out on time, but how informed are they about what does and does not go into a product’s unit cost? What impact does their work in the inventory management system have on the financial statements? One of the main differentiating factors between these two positions is the understanding of backend accounting. On the other hand, an inventory manager directs their attention to the actual product, managing order quantities, re-order dates, purchase prices, vendor relationships, and tracking costs in the accounting system and COGS. This job position tracks receiving and shipping of goods to the final destination. Both of these positions are important to the long-term success and scalability of your eCommerce business.Ī warehouse manager focuses on the movement of goods throughout the business by creating orders and ensuring the team is working efficiently. The Distinction Between Warehouse and Inventory ManagersĪlthough a warehouse and inventory manager do have some overlapping tasks, the primary goal of each of these positions greatly differs. This is usually a mistake as a warehouse manager is not the same as what you now need, an inventory manager. An important role for sure.Īs the business hits its next inflection point - implementing software systems and procedures - leadership will usually rely on the warehouse manager to step up and lead the initiative with the new systems. ![]() This is critical to get your product to customers fast. The common scenario we continue to see is that an eCommerce will spend their first salary dollars on a warehouse manager. Systems are only as good as the personnel that operate in them. You may expect that once you implement that solution, your problems will be solved, right? Unfortunately, it’s not that simple. When you get that feeling, it’s probably time to consider implementing an inventory management solution like DEAR Inventory (our preferred solution) and A2X (a must). Common issues are issues with your inventory balance on the Balance Sheet, your Cost of Goods and Gross Margin on the Income Statement, Sales Tax filings, reconciling the fees taken out of your Amazon settlements, just to name a few. Manual processes and bad data will start to obscure what your true financial position actually is. Somewhere on your road to $1M in revenue, your eCommerce business’s financial workflow will start to break down.
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