Five ways to improve inventory control in 2019: Profits are optimized when inventory gets managed in a cost-efficient way. Recognizing this importance and having readily available product is crucial to operational success and customer service performance. By inadequately managing your inventory or not controlling it at all, the organization is suffering as a result. Read on to learn five ways to modernize inventory control and to improve your existing performance levels
Decision-makers see inventory control as a cash-flow throttling device. Now is the best time for making modernization possible. Long term neglect of excessive stock, long delivery cycles, reduced resource productivity levels, stock-outs, and dead stock, lead any organization to poor performance. Excessive inventory suggests an unnecessary amount of capital utilized. Shortages lead to delivery stops, customer service challenges, and lost sales. Tips to make your current inventory solutions better include the following 5 ways to upgrade inventory controls.
Inventory control solutions and modern software applications also help with warehouse activities. Automated inventory tracking helps reduce human error. Additionally, it speeds up the picking and packaging steps. Beacon tags, Bluetooth scanners, and tracking sensors combine with modern software applications for a complete cost-effective solution.
For businesses with thousands of SKUs, multiple product varieties and complex assembly requirements, any time saved per order quickly adds up to substantial cost savings. Online inventory management not only boosts delivery cycle time but also improves accuracy. This inventory upgrade significantly improves customer satisfaction as orders get tracked from the time sold until the product given to the customer.
New inventory management systems produce real-time inventory control. This timely inventory data gives a heightened connection to events happening at any given time in the inventory system.
The ability to react quickly to supply chain variables make a program more effective. Every activity gets tracked and reported, from new stock acquisitions to outgoing transactions and order shipments. Knowing exact stock levels allows management to understand what, where, and how much inventory is available. This type of upgrade will let you act quickly and decisively.
Advanced technologies have now made it possible to automate or optimize everything from customer support to complex manufacturing. Robotic automation, for instance, can be used to complete repetitive tasks on the factory floor. It also frees up human laborers for other, more critical tasks. Furthermore, it improves efficiency across the board. Automation hardware never fatigues, burns out or slows down like people. As long as you properly maintain the equipment, it will operate under the same conditions, indefinitely. Review the repetitive tasks which should get automated. Next, invest and deploy the necessary systems and equipment.
Some products or goods have an expiration date, such as food, makeup, and perfumes. However, even electronic components have an expiration date. If you do not sell the item(s) on time, the product goes to waste. Proper inventory control takes into account things like expiration dates. Be sure to factor this information into the management process as a whole. If you have perishable goods, you should operate with robust monitoring systems in place. These systems are useful even for non-perishable items. Choosing a target expiry date helps move the relevant stock before supplying new inventory.
High tech monitoring devices, like logistics beacons, add further benefits. Order automation and real-time product tracking become possible. When a product level reaches a threshold, a new order gets automatically placed. Alerts and coordinated action plans put into place If cold storage inventory arrives at a critical level. Beacon-based systems also allow you to track product movements in the warehouse. Moreover, see security improve and inventory storage space optimized.
Modern inventory solutions do many things. Including the integration of sales, purchases, and inventory data from other enterprise systems. Updating systems means the opportunity to leverage different platforms for synergistic benefits. Information from CRM and eCommerce platforms connect into a central inventory system. A modern system adds trigger events and data updates for every transaction that occurs. The administrative overhead of managing the same operation in disparate systems disappears, productivity levels rise.
Notable supply chain managers think Inventory control is the key to a successful organization. The direction a company takes in managing this segment reflects how progressive and innovative it is. It’s a competitive environment. Don’t let poor inventory decisions needlessly waste capital. Evaluate your options for upgrading. It’s a worthy cause that makes good business sense.