One of the keys to making a business a success is having the ability to maintain high efficiency. One of the things in a company that affects efficiency the most is inventory. If you want to increase your efficiency and slash expenses, you’re going to need a good system in place to manage your inventory. With that mind, below are four resources you should take advantage of keep your inventory organized.
1. Inventory Management Software
First, you need to have the right software to allow you keep your inventory managed and properly organized. There are plenty of software suites on the market that can certainly allow you to do that. You could also build your own custom inventory control software with the help of a vendor like contractERP, which offers fenestration software and other custom ERP services.
Overall, there are a few different features that your inventory management system should have. It should track everything you have in inventory. It should be updated as stock is received and as stock moves out of inventory. It should reorder stock automatically under your own specifications. It should also list the physical coordinates in the warehouse where stock is stored and where it should be placed when new stock arrives.
2. Tablet Computers and Portable Scanners
You will also need to provide warehouse employees with the proper tools to access your inventory management software. While there are many options, perhaps the best choices are tablet computers and portable scanners. The tablets should be able to load the inventory management software as an app. The large screen of a tablet can also have advantages in regards to generating legible maps of the warehouse. The touch screen will allow the software to be easily accessed and updated as needed on the warehouse floor.
The second piece of hardware that should be provided to employees tasked with managing inventory is a bar code scanner. The scanner should be of the portable variety and have software that allows it to be used in tandem with the tablet. The bar codes on stock can then be scanned as items enter and leave the warehouse. If used with a Wi-Fi connection, this will allow the inventory to be automatically updated.
3. A Push or Pull Inventory System
Beyond the software and computer technology implemented, you need to design the logistics of how your inventory will be stocked. In general, there are two systems most companies utilize. The first is a push system. With a push system, inventory is forecasted. You predict how many products or supplies will be needed during a certain period and stock accordingly.
Secondly, you can choose a pull system. With a pull system, you only stock products based on existing orders. Different businesses will benefit from one system over the other depending on their needs. Push systems are best for companies that need to meet high demand. Pull systems are best for companies with lesser demand that want to avoid overstock.
4. Security and Temperature Control
Lastly, you need to have safeguards to prevent warehouse shrinkage. Shrinkage, in this context, refers to warehouse stock that is stolen, damaged or goes bad. According to Forbes, shrinkage costs US companies $60 billion a year. Much of this is due to theft including by a company’s own employees. Insure that you have proper camera surveillance of your warehouse inventory. This may be a good enough deterrent to stop most theft.
Secondly, temperature control is important if your products or supplies are perishable. Without proper temperature control, you could lose thousands of dollars of stock simply due to it getting too hot or too cold in your warehouse.
Overall, make sure your inventory is managed carefully, properly organized and protected. If you do so, you’ll have a far more efficient organization and lose far less money due to problems like overstock, understock and shrinkage.
