The success of many businesses depends on inventory management i.e. how well inventory is tracked, organized and handled. Here are three proven ways to increase efficiency and profitability through better inventory tracking, reviewing data and streamline processes.
Inventory Management System
A solid, cutting edge inventory management system offers significant logistical, operation and financial benefits. Using a technology-based inventory control system will enable employees to easily track down and ship products. Even better, it will enable management to obtain real-time data regarding inventory levels, future orders and product movement history. These customized reports will enable managers to make better decisions and react faster to market and customer changes. Inventory management systems should be integrated with point-of-sale style systems that automatically decrease available inventory counts and send out orders to vendors when stock levels reach certain levels. These systems are capable of printing out quick inventory count sheets and reports.
Inventory Labeling
Keeping warehouses and inventory stock rooms organized and operating efficiently is an ongoing challenge. Customized labels are a multifaceted solution for business. First, they can be used for inventory tracking purposes through expanding on vague manufacturer’s labels. That is, many vendors provide labels that lack key logistical information for warehouses. Custom labels can be applied to products in the receiving area. Labels can also be used to physically organize bins, racks shelves and even floors. Some companies, like ADAZON Label & Barcode Solutions, produce color labels in many different quantities. Having every product group organized according to color codes will increase employee productivity and reduce confusion and miscommunication. Standardized labels also increase efficiency and quality control because date codes establish expiration dates and ensure that the older inventory is used before new inventory.
Utilize Real-time Data
Sometimes, a little micromanaging is required for inventory control purposes. That is, avoid treating all products the same because different items have different customer demands, shipping times and logistical restraints. For example, a refrigerated product that is sourced from a single supplier in another state will need careful planning when compared with a local product that is universally available. A comprehensive inventory management system will enable management to track and evaluate the pricing, lead times and inventory levels of every product group. For businesses that engage in light manufacturing or kit assembly, real-time data will help warehouse managers to better coordinate complex stock requirements and sourcing from various suppliers.
To conclude, radio frequency identification (RFID) tags and systems will automatically streamline internal control processes while increasing inventory efficiency, accuracy and managerial oversight.