Without proper inventory management organizations may be faced with issues with too little or too much inventory. These issues can be costly for a business as well as hurt reputation due to product delays. One way to prevent this is by using an inventory management system.
Strategies for Balanced Inventory Management
An inventory managements system involves utilizing a wide range of technologies, automated features and processes, that may include:
Using RFID and barcode scanners will help track goods from beginning to end of the supply chain. This includes raw materials as they enter to the moment the completed products ship to customers. Using scanning technology will help employees accurately keep track of every good arrived as well as instantly update inventory records throughout the operation.
Inventory management software can provide product transaction history which not only helps with inventory accuracy but can also with forecasting future orders. Once warehouse employees scan product barcodes, tracking software would update inventory data in real time. This way, sales reps and other logistics departments know the number of materials and products available for order.
Companies that use and inventory management system with integrated order processing can see a 20% gain in space usage, a 30% increase in stock efficiency, and 25% increase in productivity in the warehouse. Having this type of improvement can allows businesses to utilize space more efficiently. Creating separate areas for receiving shipments, inventory storage, picking products, shipment labeling and packaging tasks for deliveries will also help with inventory accuracy.
Efficient inventory tracking and maintaining accurate product levels in a warehouse allows an organization to have enough products to meet customer demand while saving on warehouse overhead costs. A business adopting an inventory management system can help prevent missed orders, keep an accurate and optimized inventory, as well as monitor transactional history. Optimizing warehouse operation can also save businesses 20% to 50% on warehouse costs.
Regardless of the size of your business, these solutions could be integrated into these systems at any point in your operation. If you are interested in learning more about how to balance inventory, check out the accompanying infographic below.
Infographic created by WSI, a 3pl distribution company