Packsnballons Enterprise is a Lagos-based retailer of children's toys and gifts, located in Lekki Phase 1. With a significant share of its products imported from overseas suppliers, the business needed to know the true cost of every item. This case study shows how Zoho Books and Zoho Inventory helped the company capture the true landed cost of its imported products, manage foreign-currency purchases with confidence, and gain clear visibility of its stock.
Company Overview:
• Educational, creative and play toys
• Party favours
• Back-to-school essentials
• Seasonal gift boxes for children of all ages
The business delivers across Lagos and nationwide, and a significant share of its products is imported from overseas suppliers. As the business has grown, managing imported stock and its true cost has become increasingly demanding.
Key Challenges Before Zoho
Zoho was chosen as the right application after ascertaining the following needs.
1. Calculating landed costs
The client needed an accurate way to calculate the landed cost of imported goods, including freight, customs duty, clearing and other import charges, so that each item's true cost is reflected in inventory.
2. Foreign-currency purchases
They required the ability to record purchases from overseas suppliers in foreign currencies, with exchange rates applied and any exchange differences accounted for.
3. Real-time inventory visibility
They needed real-time inventory tracking across a wide range of products, organised by category and age group, to support purchasing and sales decisions.
4. Gift boxes and bundled products
They required the ability to assemble and track gift boxes, party-favour packs and other bundled products made up of individual stock items.
5. Integrated accounting and reporting
They needed an integrated accounting system to record sales, purchases, payments and expenses, and to generate reliable financial reports.
Zoho Software Implemented
• Zoho Books
• Zoho Inventory
Solutions Delivered with Zoho
1. Integrated Zoho Books and Zoho Inventory
Zoho Books and Zoho Inventory were set up as an integrated system, with Zoho Books serving as the accounting hub and Zoho Inventory managing stock, purchasing and sales.
2. Landed cost tracking
Landed cost tracking was configured so that freight, customs duty, clearing and other import charges are captured against each import purchase and allocated to the items received, giving an accurate cost per item.
3. Multi-currency purchasing
Multi-currency was enabled for overseas suppliers, so that purchase orders, bills and payments can be recorded in the supplier's currency, with exchange rates applied and exchange gains or losses posted automatically.
4. Item categories and age groups
Items were set up and organised by product category and age group, with reorder levels to help the team identify fast-moving and low-stock products in good time.
5. Composite items for gift boxes and bundles
Composite items were configured for gift boxes, party-favour packs and other bundles, so that assembling a bundle automatically reduces the stock of its component items.
6. Accounting set-up and user training
The chart of accounts, sales and purchasing workflows and key financial reports were configured, and users were trained on the system.
Results Achieved with Zoho
As a result of implementing Zoho Books and Zoho Inventory, Packsnballons Enterprise noticed these changes:
1. True landed cost per item
The business now knows the true landed cost of every imported item, enabling more accurate pricing decisions and a clearer view of the profit on each product.
2. Accurate foreign-currency records
Purchases from overseas suppliers are recorded in their original currencies, and exchange differences are accounted for accurately in the books.
3. Real-time stock visibility
Management has real-time visibility of stock levels by category and age group, making it easier to plan reorders and avoid stock-outs, particularly ahead of peak seasons.
4. Accurate bundle tracking
Gift boxes and bundled products are now tracked accurately, with component stock updated automatically as bundles are assembled.
5. Financial reports on demand
Sales, purchases and expenses are recorded in one system, and financial reports are available on demand without manual compilation.
Conclusion
Implementing Zoho Books and Zoho Inventory enabled Packsnballons Enterprise to bring its accounting and inventory management together on a single cloud-based platform, capture the true landed cost of its imported products, manage foreign-currency purchases with confidence, and gain clear visibility of its stock to support accurate pricing and continued growth.
Today, the business has a clearer view of what each product truly costs, helping it price with confidence and plan ahead for peak seasons.