Top 5 Solutions to Common Inventory Management Mistakes

09 January, 2017
blog

Being inventory management Software Company, we are required to send out trainers all around the country to help various warehouses of different companies implement our software in to their system. Our trainers not only help the managers of the warehouses understand about our system but also help them in overhauling the very outdated inventory management system that has resulted them in being less efficient which has mostly led to losing out on important business money.

From our trainer’s experience of visiting various warehouses, we have identified some of the most common problems that are prevalent in most of them. So, we decided to show you those problems and also provide you with their solutions:

1. Use reorder points on inventory items to keep purchasing streamlined and inventory manageable.

Recorder point, which is sometimes known as min and max levels, are certainly one of the best ways through which you can ensure that you have just the right amount of inventory in your warehouse at any point in time. It is because if you have too little inventory, you can lose out on cash whereas, if you have a lot of it; you may lose out on the money because of it being tied up for no reason.

A quick way to solve this problem of managing cash from the standpoint of inventory is by ensuring that you have set the recorder points in the right level for your business.

2. Getting specialized Training by spending money for Mission Critical Software

There are several companies who have their products of millions of dollars on the roads and in order to keep a check and track all of those items of theirs, they employ software which comes by spending hundreds of dollars. And after spending hundreds of dollars on getting the software, most of the companies make a mistake by not opting to hire a trainer for merely few hundred dollars who would be able to guide them on the proper usage of the software.

So, the companies need to stop with trying to learn about the software on their own because it may take months before they finally are able to learn it to the full and whilst that, they may have to undergo huge losses and damages.

3. Enhancing picking Efficiency by Rearranging the Warehouse

We have often seen such kind of mistakes which you would think are too obvious but since warehouse managers are occupied with a lot of other things; they often let it go unnoticed. It is quite often that we see a 100,000 square foot warehouse being used in a very inefficient way. These companies would do themselves a big favor if they rearrange their inventory in a way that places those products which are most shipped out to the nearest place while those products which take a longer time to be shipped out should be placed mostly towards the end. This will let your employees cut out on the distance that they have to cover by a huge margin.

While your company is in growing stage; you would place any item in the available space but when your business grow you will need a proper planning of the inventories because with every distance covered; you will have your very precious fuel burned that will ramp up on your cost.

4. Spend some time to learn about the functionality of the technology you are employing

It is hardly the case where a company is able to make use of all of the functionality of the software they are using. Most of the software companies hear out from the customers regarding some functionality that they want which in most cases is already there in the software.

The more features that you learn of your software and employ them; the better you will be able to effectively handle your warehouse. So make sure that you have a man dedicated for this purpose alone; be it from a person within the company or anyone from the outside.

5. Stop with the Yearly Physical checkup of inventories and switch to more regular ones

The outdated practice of physically going in to the warehouse to count everything in order to make sure that it matches the information on their software required them to shut down the company from one days to multiple weeks. This fashion has gone out of order not only because it was time consuming but also because it costed a lot. Now is the time to periodically keep a check on the items meaning that you can dedicate one section at a time and count the items in that particular area before you move on to the next one.

If you would like to purches online inventory shopping Cart Software for you online business you can think about Woops ecommerce managment system.

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