Proper inventory management is essential, so take a look at your current processes and see if you’re making one of these five common mistakes.
1. Unqualified workers are managing your inventory: Because this job is so important, you need to ensure you have the right people in charge of it. Hiring a professional inventory manager – or at least someone with a lot of experience – is worth the expense when you consider how much money is tied up in your inventory. Keep in mind that inventory management software vendors will often offer training for your workers. Likewise, having a trusted person in place who is aligned with your goals is essential.
2. You’re using inadequate performance measurements: Product managers need a firm grasp of inventory turns and fill rates at all times, so tracking these metrics properly should be a priority.
3. Inventory counts aren’t being carried out properly: While there is no need to stop warehouse operations for a day or two at a time to physically count items, you should be checking the levels of inventory in one section each day. Barcode inventory management systems can make the task a lot easier.
4. You’re not making the most of automation: It’s time to ditch the old-fashioned spreadsheets and other manual processes. These are highly error-prone approaches, with studies showing that even the most proficient data entry operators make approximately one error for each 300 characters entered. Over the course of thousands of products, this can add up to significant trouble. Automated systems allow several employees to keep track of items in multiple locations while also monitoring your orders and shipments.
5. Your forecasting needs some work: Quite simply, if you can’t meet the needs of your customers, they’re going to take their business elsewhere. Automated inventory management systems can provide a handy overview of what is in stock and what is trending so you can make sure your customers will always have what they want when they want it.
This blog post was based off of an article from Entrepreneur. View the original here.