Running a warehouse may sound like a lot of fun, right? It’s just a matter of making sure all the supplies are on the shelves. Wrong.
Running a warehouse is just a little more difficult than that. In order to keep track of each item and to make sure that nothing goes missing, it takes being organized and dedicated at all times. Below are a few reasons why investing in inventory management solutions is so very important:
- Monitors inventory on hand
- Alert and automatically replenishes when supply is low
- Performs ABC analysis
- First in First outmaneuvers
- Monitors returns and damaged inventory
The activities listed above are important. They actually help to keep the warehouse running properly. In order to maintain control and know how much product is in the facility there has to be documented monitoring. Many warehouses now use some type of software.
The owner would need to determine how he/she would like to run the warehouse. They will need to determine what are the things that are most important, then purchase software that capitalizes on that particular issue. The great thing about data is that it compiles everything into one space and it organizes it. Different types of software then come along and take it that much further.
Some Benefits of Inventory Solutions
The purpose of monitoring inventory is to make sure it doesn’t run out or that too much isn’t being ordered. Specialized software can help a warehouse do just that. In order to make it work, each and every item/vendor number will have to be entered into the program.
The program will then keep an eye on it from there. When an item runs low, the software will alert the warehouse. In some cases, the item will be ordered immediately after the alert.
Newer inventory software also contributes a great deal when it comes to ABC analysis. Obviously, this maneuver involves intense monitoring of the more valuable products that may not sell as quickly vs less monitoring of less valuable quality that sells a bit better. The more valuable items are considered in the A group.
The lesser valuable items are in the B group and then the least value that sells a lot in the C category. This maneuver is designed to help save money by not losing track of very expensive items. Whereas, at the same time, time isn’t wasted on over monitoring cheaper items. Inventory management solutions are basically to save time and money.
First in and first outmaneuvers can be devastating if neglected. Especially for perishables. First in, first out is simply selling all items that have been sitting in stock for a while, before the newer stock is sold.
This can easily be done by stocking newer items from the back, rather than the front of the shelves. By constantly keeping all merchandise scanned and updated, it should be revealed when the first in first maneuvers aren’t being followed. Inventory management solutions are designed to make inventory warehouses more manageable and user friendly.
With the proper software downloaded and in place, it is now that much easier to spot and determine the amount of damaged or returned goods. Losing track of items that have been returned can be annoying. Not only is it annoying, but it can add up and cause the company to misplace money.
What’s worse if there are items coming into the warehouse that is damaged the company can get reimbursed for it. However, if the shipments aren’t being monitored appropriately then chances are these items won’t even be noticed. So, having the proper inventory solutions set is very important for any company.