March 22nd 2023 11:00:00 AM
5 Traits of Excellent Inventory Management
January 12th 2017 11:00:08 AM
Your inventory represents a hefty investment of capital. Products remaining idle and collecting dust in the warehouse are costly. Not only does a business pay to produce laggards, it must also pay to warehouse and maintain them.
Excellent inventory management reduces excess goods, maintains adequate stock, and optimizes warehouse space by thoughtful placement of shelves and bins. Inventory management is both an art and a science, fueled by accurate data from inventory systems married to your company’s ERP systems and more. The right inventory management system can help your company control costs and maximize profits, no matter what industry you are in.
What Makes Excellent Inventory Management?
- Well-organized inventory: Inventory that is organized well is placed strategically throughout the warehouse to minimize the amount of time it takes to pick, pack, and ship. Frequently purchased items may be placed near the packing area. Bins and shelves are carefully labeled. If barcodes are used to identify goods in receiving, the bar codes in the shelving areas are matched. All areas are kept clean so that goods look appealing.
- Inventory accuracy: Inventory accuracy means that both starting and periodic stock counts are accurate. Barcode scanners enhance inventory accuracy by reducing clerical errors and miscounts. If manual systems are still used, inventory is taken regularly and systems are updated to reflect the latest counts.
- Consistent item names and numbers: A good inventory management system uses a consistent nomenclature and/or numbering system for parts, products, and goods. This makes it easy for workers to learn the products and find them quickly in the warehouse and in the systems.
- Integration with ERP and business systems: The best inventory management systems integrate easily with ERP systems and other back office systems. Sage products integrate well and can easily add functions for other business areas if needed.
- Well-trained workers: A system is only as good as the people using it. Warehouse management and inventory management includes having people trained on how to handle the stock, take inventory, run the systems and equipment, and perform their job duties safely throughout the warehouse. Hire the best people you can afford and invest in on-the-job training to ensure that the people running and working in your warehouse can effectively use all inventory management systems to run the warehouse.
Data Accuracy with Barcode Scanners
You can improve data accuracy with a good system. Inventory management systems with barcode scanners integrated with Sage 100 can be a cost-effective solution to help you manage all aspects of your inventory.
Scanco offers integrated inventory management software and barcode scanning that will streamline your operations and generate more profits. To learn more, contact us.