Inventory Management is the key that holds warehouse operations together. Without an accurate, organised, logical, and efficient inventory management plan, every other part of the distribution process gets held up. By addressing some key areas and making the right changes, even an underperforming facility can move forward towards proper inventory control.
Below are 3 key tips to maintain an effective inventory management:
1. Be Consistently Accurate
At its heart, inventory management is centred around accuracy. Improperly counted products can lead to any number of issues so it is best to prevent problems by maintaining a high level of accuracy. To ensure physical counts remain consistent with the digital ledger, inventory should be:
- Double counted when it is brought in the door
- Added to computer systems
- Placed on its shelf or in its bin, when any amount is picked and packed
- Perform a thorough inventory count on a monthly or weekly basis
2. Always Be Organised
The only way to be accurate is to be organised. This means building shelves and bins in a manner that leaves enough space to house inventory in an organised fashion. Having a large pile of product scattered around does not lend itself to quick or correct counts. Instead, take the time to organise items on shelves in rows so that they can easily be counted at any time. Another important step is to organise areas or products before they become a mess. If a certain area is falling into disarray, fix it now. Do not wait or assume that it will be fine, make sure that each section of the warehouse meets high standards of organisation at all times.
3. Make it Logical and Efficient
Although it may require moving shelves or relocating inventory, it is well worth the effort to arrange things into a logical and efficient layout. If a certain product gets picked and shipped numerous times a day, make sure that it is not located too far away from the shipping area. It may be beneficial to establish a ‘High Usage’ section of bins and shelves to house items that are frequently ordered or shipped. Also, put heavy items on the bottom and place them in a way that doesn’t require them to be moved in order to be counted. Take the time to think through the floor plan so that it creates a streamlined work flow that negates unnecessary climbing, walking, moving, or foot traffic.
Path to Effective Inventory Management
Get started on the path towards better inventory management. Practice the above tips for better accuracy, organisation and efficiency to transform your warehouse operations. For further tips on improving your inventory management, contact us for a no-obligation discussion.