By Stockria Team

Two problems basic inventory tools ignore

Most inventory software assumes a simple world. You buy things, you sell things, and the number goes down when a customer pays. That model works for a shop. It breaks the first day you actually make something.

Small-batch manufacturers hit two walls almost immediately, and neither is solved by a longer spreadsheet.

The first is that you make some of your own ingredients. You do not buy an infused oil, you make it, and then you use it in four different products. The second is that time is part of your process. Soap cures for four weeks. A tincture steeps for a fortnight. Cheese ages, sauce ferments, coffee rests, kombucha brews. During those weeks the raw materials are gone but the finished product does not exist yet.

Get either wrong and every number you rely on is wrong with it.

The component you make yourself

Say you make a herbal salve. The recipe is infused oil, beeswax, a tin, and a label. Three of those you buy. The oil you make yourself from dried flowers and a carrier oil, and it takes three weeks to infuse.

A flat bill of materials cannot describe this. It wants to list the flowers and the carrier oil directly inside the salve, which is wrong for three reasons.

You would lose the batch. You make a litre of infused oil at a time and draw from it for months. It is a real thing sitting on a real shelf. It needs its own stock level.

You would lose the cost. The oil has a cost per millilitre that only exists once you have made it, including the flowers you strained out and threw away. Bury the flowers inside the salve recipe and you never learn what a millilitre of your oil actually costs.

You could not reuse it. The same oil goes into the salve, a lip balm, and a body butter. Listing the raw flowers in all three means changing three recipes when your supplier's price moves.

What you need is a sub-assembly, sometimes called an intermediate. The oil becomes its own product with its own recipe, its own stock, and its own cost. Then it appears as a single line inside every product that uses it. This is what people mean by a multi-level bill of materials, and it is the difference between software that models your workshop and software that models a shop counter.

The pattern repeats everywhere in small-batch work:

  • Wax and fragrance become a scented blend, which becomes candles, melts and tins
  • Herbs and alcohol become a tincture base, which becomes several bottled strengths
  • Sugar and water become a syrup, which becomes a range of sodas
  • Cocoa nibs become a chocolate mass, which becomes bars and truffles

In each case the middle item is inventory in its own right. If your software cannot hold it, you are keeping half your production in your head.

Costs that roll up on their own

Once the intermediate is a real item, costing stops being a spreadsheet exercise.

Your flower price goes up. That changes the cost per millilitre of your infused oil. That changes the cost of the salve, the lip balm, and the body butter, along with the margin on each. In software that understands multi-level recipes, you change one purchase price and every product above it updates. In a spreadsheet, you change one cell and quietly forget the other nine.

This matters more than it sounds. Most makers price on instinct and discover their real margin much later, usually when a wholesale order turns out to have been unprofitable. A recipe that costs itself is the cheapest protection you can buy against that.

Multi-location inventory tracking
Barcode scanning from your phone
Low-stock alerts and reorder points
Purchase orders in two clicks
Works alongside your accounting tool

Time as part of the process

Now the harder problem. When you start a batch of soap, the oils and the lye are consumed immediately. The bars exist, but they cannot be sold for four weeks.

If your software only knows raw materials and finished goods, you have two bad options. Count the bars as finished stock now, and your shop will happily sell something that is still caustic. Or do not count them at all, and the batch vanishes from your system for a month, so your stock report says you have nothing while four hundred dollars of product sits on a curing rack.

Work in progress is the third state. Materials are consumed when the batch starts, the output is held aside with a date on it, and only when that date passes does the stock become sellable. Every number stays true throughout. Your materials go down when you actually use them. Your sellable stock does not lie. The value of the batch is visible instead of invisible.

The practical version looks like this. You start a batch and name the process, whether that is curing, steeping, infusing, fermenting or aging, and how long it takes. The materials come out of stock straight away. The batch appears on a board with a countdown. When it is ready you release it, and only then does it become stock you can sell.

Yield is never exactly what you planned

Every maker knows this and almost no software admits it. You press 2,500 millilitres of steeping tincture and get 2,100 in the bottle. The rest is in the spent herb you squeezed out. You cut a soap loaf into 48 bars and two are ugly.

Those losses are not waste to be written off separately. They are part of the cost of the good units. The 400 millilitres you lost was paid for by the same herbs and alcohol as the 2,100 you kept, so the honest cost per millilitre is the whole batch cost divided by 2,100.

Software that asks what you actually got, rather than assuming you got what you planned, gets your product cost right without you doing arithmetic. Software that does not will quietly understate every cost you have, and the error compounds through every product that uses the intermediate.

The details that decide whether you use it

A few smaller things separate tools that makers keep using from tools they abandon after a month.

Units that match how you work. You buy a 25 kg sack, you count in grams, and your recipe calls for 40 g. You should not have to convert anything by hand or store a silly number like 0.00004 sacks. The purchase order should read in kilograms, the recipe in grams, and the stock report in whichever is easier to read.

Batch numbers and expiry. If you sell anything ingestible or applied to skin, you need to know which batch went where, and when it expires. That should fall out of production automatically, not be a separate label spreadsheet.

More than one place to keep stock. A workshop, a storage room, and a market stall are three different stock levels. A batch is made somewhere specific. If the software only knows one total, it will tell you that you can build something using materials that are forty miles away.

Recipes that carry the method. The quantities are only half of it. Hold the temperature, the timing, and the technique with the recipe so the batch is repeatable by someone who is not you. This is what turns a personal skill into a business that can hire.

What this looks like in Stockria

We built these features because makers kept asking for the same two things, and most inventory tools on the market either ignore them or reserve them for an expensive manufacturing tier.

In Stockria, any product can have a recipe, and any product with a recipe can be a component of another. An intermediate you make becomes a stocked item with its own cost, and every product that uses it shows it as a line with a "Made in-house" marker you can click through to. Each product tells you where else it is used, so you can see the effect of a change before you make it.

A recipe can state what one batch makes, so you write 1,000 mL of oil from 100 g of flowers rather than pretending to make a millilitre at a time. Costs roll up from raw material through every intermediate to the finished product, and change a purchase price and everything above it updates.

Work in progress is a first-class state. Give a product a process and a duration, and starting a batch consumes the materials and holds the output. In Production shows every batch grouped by process with a countdown and a release button. When you release, you enter what you actually got, any loss goes in its own box, and the cost per unit is worked out from the good units. A batch number and expiry date are created for you.

You buy in one unit and build in another. Stock is held in the smallest unit you work in, purchase orders are written in the unit you order, and the display uses whichever reads best. Stock is tracked per location, so a batch is made somewhere real and the system will not let you build from materials you do not have on hand.

All of it is on every plan. The free plan covers 250 items and one location, and the paid plans raise the limits rather than unlocking features. There is no separate manufacturing add-on, because a maker with 60 products is still a manufacturer.

Where to start

Pick the one component you make yourself and use in more than one product. Give it its own recipe and let it become its own item. Then make your next batch of it as a work order instead of a note on your phone.

You will know your real cost per unit for the first time, and you will be able to see, in one screen, what is curing on the rack and when it will be ready to sell.