These Five tips have been proven to maintain inventory accuracy

If you need a stronger understanding why inventory management is critical to your overall business, 5 minutes reading to this article can help you know how to refine your daily business operations by cultivating inventory accuracy.

Inventory Record Accuracy (IRA) is a measure of how closely official inventory records match the physical inventory
A business relies upon the accuracy of its inventory records in order to maintain its production and customer fulfillment systems.
Due to the shortage of proper inventory management processes and procedures such as basic inventory record maintenance and documented inventory procedures, some manufacturers and distributors are not able to maintain basic warehouse operations without going into reactive mode.
If you’re not tracking inventory data such as stock turn, conversion rate and shrink, you’re neglecting a huge factor on your organization success.  These metrics provide you with extensive insights that you can use to make important decisions.
What’s the best way to stay on top of inventory metrics? Your inventory management system would have the analytics capabilities to give you the data you need. Check your organization system to figure out if it gives you full and complete solutions and capabilities for optimum performance.
Tip 1: Preserve an intelligent organization for your warehouse
Make sure your warehouse is organized in a systematized form. so that products are  easily identified for sales orders and material headed inbound to the warehouse can be received and stored in an efficient manner.
If your warehouse employees can’t easily access what they are looking for to fill a new shipment of material/parts can’t be stored correctly because the warehouse inventory isn’t organized in a systematized and well-planned-out manner, you’re losing precious time for both your employee and clients increase your add up cost.
Tip 2: Define and follow efficient storage and receipt processes and policies
The warehouse is only as efficient as its documented policies and procedures. For efficient inventory movement and accurate data recording it’s essential to define all the processes within the warehouse.
This includes:
·        Procedures for physical interaction.
·        Material handling,
·        Safety guidelines.
·        Quality of reporting.
The documented procedures should detail how the inventory should be handled, checked, and put into storage locations. The instructions also need to include how to handle damaged inventory—can it be reworked or does it need to be scrapped?
Tip 3: Use cycle counting
Cycle counting is a way of counting inventory where small subsets of inventory are counted over a long period of time. It provides an ongoing assessment of inventory accuracy and procedure execution, and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business processes. Cycle counting verifies inventory accuracy and can help identify the root causes of inventory errors.
Tip 4:  Stay on top of loss prevention.
 This tip is from– Sara Haering an inventory management expert
 “It’s all about centralized systemic redistribution processes, which should be controlled by a loss-prevention manager during the whole year. Incoming goods and transit must be monitored and clarified by one department within the company. It’s the only way to prevent loss and generate a good inventory outcome!”
Tip 5: Choose the right inventory software for your specific business
The process of Choosing an Inventory Management System is crucial and can help you thriving your outgrowth and it begins with:
  •  Understand your stock control needs.
  • Recognize the value of inventory management software.
  • Figure out the cost of your inventory management system.
  • Choose the right inventory software for your specific business.
  • Set up and deploy the system in your organization/
At the end we hope that this article was helpful in nourishing  your inventory knowledge and we’ll be more than thrilled to walk you through any further concerns you may have. Just contact us.
Subscribe

Get latest updates and offers.

GoDigital © 2023. All rights reserved.