From the definition, we know that Inventory management is the supervision of non-capitalized assets and stock items. Usually, it supervises the flow of goods from the manufacturers to the warehouse. Inventory management system does not take any decision or manage the operation. Only they provide information to the manager who makes accurate and timely decision.
Effective inventory management is all about knowing what is in my hand, use, and finished product results. It is the process of organizing and keeping just enough products in stock to meet the actual demand. Inventory management system is a tool that normally uses the businessman to better serve the customers.
Let me describe the inventory solutions for your business | How you keep them look good.
At first, you need to know your high sellers
Place your high volume amounts closer to the shipping area and makes sure they are very easily accessible. So you will eliminate a huge amount of unnecessary time. This process is only applicable to your proven top sellers to avoid unnecessary Physical inventory re-allocation.
You need to utilize cycle counts
Please don’t wait until the annual physical inventory count comes to perform the basic inventory control audits. You need to perform cycle counts and analyze their discrepancies to perfect the time that it should take you to go to all the locations.
Make room for receiving
Thousands of inventory errors can occur at receiving if your inventory management personal doesn’t have enough space to work. Stop them from building a small office at the end of the room. If you eliminate receiving errors then it will definitely relieve from any kind of ugly issues like losing time and money.
Implement Quality Control
Double check the orders and fix the mistakes that you have done. You need to add another layer of responsibility. The process checks a pick item against a recent order and correct SKU, quantity.
Priority picking is mostly an important topic here
From our years of experience, we can say that, create colored order or pick the lists which belong to our valuable customer. Now distribute them according to the color priority.
Finish the work at the right time
Please provide the warehouse crew to have a chance to finish the order before they clock out. You need to schedule the time correctly to stop the processing orders. At least 30 minutes before the starting of the day and the rest of time is for cleaning. Now, at the end of the day, your warehouse will be organized and the inventory will stay cool where it was before.
Good Inventory Management System starts with upkeep
Inspect your operation regularly and you should make a review of your warehouses’ organization. The reason is sometimes you may see that it was well organized but that doesn’t mean that it will meet all the requirements. If you don’t do regular upkeep, a well-organized warehouse can easily become disorganized and it will really hard to navigate which can slow your pickers.
Final few thoughts
In this article, I have tried to describe the basics of Inventory Management system. If you would like to learn a lot more then please stay with us. Have fun and enjoy!!