Running an inventory-based business is complicated, especially if you have several product movements happening per hour.
It takes a lot to keep everything running smoothly. While you’ll never be able to avoid all inventory errors, there are some things you can do to greatly reduce them.
1. Simplify, simplify, simplify
There is no better cure for inventory woes than keeping things as simple as possible. The more complicated a process, label, system, or stockroom, the more likely that somebody along the line will make a mistake.
Create a common format for your labels. Have a standard process for how you input items into your locate software. Keep the number of times an item is moved to a minimum.
Take a look at the logistics of your business and analyse how your product moves from entry to exit. See if you can make the entire process simpler – and then do it. The fewer steps there are, the less risk of something going wrong.
2. Perform frequent cycle counts
You should perform a physical inventory count at least once per year – preferably twice. You should also perform regular cycle counts (regularly counting a small fraction of your inventory so over time all your inventory is counted). They’re a great way to prevent inventory errors before they get out of hand.
Physically count a manageable number of your items according to a schedule. Stick to it, and make sure you rotate through your entire stock.
When your big physical inventory event rolls around, you’ll find you’ve already addressed most errors. You might even catch where things are regularly going wrong, which gives you a chance to fix your process.
3. Lean on technology
Technology is your friend when you run a business that has inventory. Enlist the help of a software consulting firm in Sydney to get set up, especially if you’re still using handwritten labels.
A good inventory software system will do a lot of the work for you, which saves time and reduces the chance of a mistake. The best inventory systems use smart tools and integrations to make your job easier.
4. Allow time for focused tasks
You surely have a fantastic team of multi-taskers working in your stores or warehouses. That’s great, but it’s a drawback when inventory is concerned.
Because there is plenty of room for human error and lots to count, a distracted employee is one who’s prone to make mistakes. Make sure you’re providing an opportunity for your team to focus on the task at hand. That way they have the chance to complete tasks without interruption and will get the job done right.
5.Train adequately and often
Even the best inventory system will produce errors if your team isn’t sure how things work. Ensure everyone is familiar with your inventory software system and knows how to use it well.
Check in to make sure they all understand physical inventory movements, too. Mistakes are most often made when a person is unaware of how to complete a task.
6. Keep your team well-rested
A tired employee is likely to miss things. Especially when counting large numbers of items, you need breaks to give the eyes and brain a rest. Give your team lots of time to rest and recharge and you’ll find they’re a lot more effective.
Inventory warehouse management goes beyond taking care of products. You’ve got to take care of your people, too.
7. Get a pro to help with your product inventory system
Online stock software makes it possible to manage your inventory remotely, so you can enlist the best of the best to help with your business. From our offices in Sydney, our inventory services can help you more effectively manage your business.
Final thoughts
Inventory management is a complex process that requires a mix of technology, a great team, solid leadership, and lots of training and practice. With time and regular upkeep, you’ll find that most inventory mistakes are avoidable. Contact us to learn more about how our cloud based inventory management in Sydney can support your business.