Inventory accuracy is considered to be one of the biggest and important performance factors for any warehouse as well as a distribution center. The ultimate goal of having effective inventory management is to balance the requirements of order fulfillment while reducing the inventory carrying costs.
It is important for businesses to have a strong warehouse inventory management plan as it needs to balance different types of conflicting goals like rapid order, understocking and overstocking, shorter lead times, improved visibility, better flow of work, smooth flow of product, maximum productivity, more capacity and lot more.
Let’s now understand how to increase the accuracy of the warehouse as well as inventory management system.
- Organize the Warehouse
It is important to make sure that all the storage locations are marked clearly. All the fast-moving items should always be stored in the easy to access locations. Group identical products in a similar location by using bins, shelves and eliminating clutter in different warehouse areas.
This makes it extremely easy for the inventory items to account and to identify and, most importantly, improve order fulfillment efficiency. The use of modern technology like RFID warehouse inventory management system will certainly improve the efficiency as well as the productivity of the warehouse.
- Train Employees on Best Inventory Management Practices
Accuracy in inventory management cannot be made overnight or on its own. In order to be successful, it is imperative to involve the employees throughout the process. It is the responsibility of the management to let all the employees aware of the changes made in the policy and practice of inventory management. When needed, train them with the right set of technology and systems. It is important for them to be informed about the practices in order to increase the level of accuracy.
- Develop Better Relationships With the Suppliers
Believe it or not, having cordial relationships with the suppliers is as important as maintaining associations with the customers. This helps in eliminating or reducing the overall inventory costs and to fulfill orders quickly. Overall, it helps in the smooth functioning of the inventory.
- Integrate Cycle Counting
Cycle counting is a process of counting the inventory where subsets are countered over a long span of time. It is way different from conventional physical inventory counting, in which the operations cease while articles are counted at a facility individually.
The best thing is that the cycle counting is less disruptive for the daily operations. The process also verifies the overall accuracy of the inventory and recognizes the primary reasons for the errors to happen.
- Real-Time Tracking
Unless the product reaches the destination, the warehouse operation is incomplete. Make sure to keep track of the delays as well as damaged deliveries through shipping notifications. These alerts are very helpful in offering real-time information on the location of the product with the help of geotagging technology. Real-time tracking empowers warehouse managers to make the right decisions in case of any disruption in the delivery’s overall flow.