You can make your inventory management far less problematic with the proper application of policies that will be carried out by all members of your staff involved in administering or accessing your inventory supplies. This creates a systematic precision that can successfully eliminate the most common inventory management issues that can affect proper business flow.
This is all easier said than done. But to help you with a kickstart in the right direction, following are some actionable steps you can take towards precision inventory management.
1. Use Better Management Tools — Integrate your process with a top of the line inventory management software solution. With so much of your business relying on the inventory management process, the quality of this tool will determine the quality of your entire business process.
2. Apply Tighter Restrictions — Grant access to inventory data with extreme caution. Your cloud-based inventory management system has excellent tools for this. But remember to be selective with who you give access to this sensitive data and analytical tool. The more hands with access, the more chances for human error.
3. Keep Careful Records — Use your mobile inventory apps to conduct on-going stocktaking programs. Automating stock management and accessing real time data allows for a tighter control over stock levels.
4. Limit the Difference Between Costs Above Price — The deals you make with your suppliers may not always include the costs for fright of holding, these can add up considerably and increase the costs of your purchase orders. A well-appointed inventory management system limits these differences and can save valuable resources overtime.
5. Perfect Your Physical Inventory Counts — Prepare your warehouses in advance for the count by isolating transit and labeling any exceptions. Make sure all the data being collected is passed through a control desk to double check those numbers and make sure your figures fit perfectly. Before you finish, select the most appropriate metrics to be tracked over time.
6. Reconsider the Need for Safety Stock — While the presence of safety stock does add a measure of security and is probably a good idea at certain times and for certain products. Keeping safety stock ties up resources that could be used elsewhere. These numbers can be reduced with precision inventory and planning solutions that allow you to predict how much your safety stock you will need and how much you can save.