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Inventory management is one of the most important responsibilities for any warehouse. Without stock and inventory, there’s nothing to sell to the consumers. There needs to be a process in place to ensure that inventory organisation is seamless and goes off without a hitch.
Not only does this ensure that your best-selling items continue to be a hit, but it also prevents money being wasted on over-ordering of stock, damage to stock or stock being lost or stolen.
If you’re looking for ways to make your inventory management even more streamlined, then you’ve come to the right place. In this article, we’ll be detailing five tips you need to ensure seamless inventory management operations, so let’s take a closer look at how you can do that effectively:
1. Embrace new technology & automation
Why rely on old conventional inventory management and tracking methods when you have all of this new and advanced technology at your fingertips? In a world that runs on digital solutions and AI-generated automation, why not use it to your advantage to save time, money and hassle?
There are multiple warehouse management systems (WMS) available to warehouse owners and managers, each one with unique capabilities. While one WMS might suit one warehouse, it may not be suitable for another. Do your research and find out which WMS system is best for you and for your inventory size.
It will have the ability to tell you how much of everything you have, where it is and when you’re running low on certain items. This enables you to keep a fully-stocked warehouse at all times. Make your inventory management operations more efficient and productive with the implementation of new technology and use automation to your advantage also.
2. Make sure you’re rotating your stock
Coming across old or expired stock is one way of losing money and reducing profits, whether you’re operating a warehouse or own a shop on the highstreet. Expired stock, also known as dead stock or obsolete inventory, can cost you more money than you might think, especially if you’re paying to store the items in the first place.
The longer hidden dead stock remains in your warehouse, the more it costs you further down the line, in interest rates alone, if applicable, claims Industrial Distribution. By rotating your stock, whether it be food, drink or even beauty products – anything with an expiry date – you’re mitigating the risk of having to throw away items that would have been perfectly good to sell one month ago.
When you get a new delivery of inventory, make sure the old stock is taken out, the new stock is pushed to the back and the old stock is placed in front of the new stock. Date-rotation is paramount. Especially if you’re wanting to save money and prevent a lawsuit as a result of the sale of expired goods.
3. Organise your inventory sensibly
Have you ever thought carefully about how you’re storing the stock you have? You need to make sure, first of all, that your stock is stored safely and securely. This means placing stock on warehouse racking that is fixed to the wall. In addition, heavy stock needs to sit at the bottom of the warehouse shelving and lighter boxes at the top.
In addition to safety and security, ensuring everyone in the vicinity is protected and that your inventory is safe from damage, you should also organise your stock in a way that makes order picking efficient and quick.
For example, put your best-selling items somewhere that is easily accessible and that doesn’t require the use of big, heavy machinery to bring it down. It needs to be somewhere where a simple manual pallet truck, for instance, could get the job done. Think carefully about where your stock is housed when it comes to arranging your stock and inventory.
4. Prevent stock loss, theft & damage, where possible
According to Bloomberg UK, loss of inventory equates to a loss of around $163 billion in the warehousing industry worldwide. This can impact even the smallest of warehouses. As such, it’s important that inventory is protected from loss, theft and damage, wherever possible. Also, place lighter stock at the top of the warehouse racking and heavy items at the bottom.
In addition to that, you should also make sure that forklift operators are trained. This is to ensure that they’re taking corners properly to avoid collision. If a forklift collides with an obstacle when carrying a load, it could cause stock to fall off. As such it could cause damage to your inventory.
Date rotation is also important if you’re wanting to prevent stock expiry, which is something else we have touched upon. Theft is something that you’ll have less control over. There are provisions you can make, but there is no simple solution to warehouse theft. Some of the things you can do include:
- Implementing access control
- Adding surveillance systems
- Putting alarm systems in place
- Conducting security training
- Installing CCTV
- Employing security guards
- Carrying out background checks on your employees
5. Consistently replenish your stock
The last thing you want to happen is to run out of your best-selling items. What you should be doing is looking back at your sales history. This will enable you to determine what is selling well and what isn’t.
This ensures that your stock levels are sufficient enough to keep up with demand. It also means that you’re not wasting money replenishing stock that doesn’t need replenishing in the first place.
But why not stay ahead of the game and make sure that you have surplus stock of your best-selling items? There are multiple ways in which this can be done. In this day and age, technology is relied upon for ventures such as these. With real-time updates and automation software, it’s never been easier to keep an eye on stock. Whether they sell well or not.
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Multy Lift has over three decades of experience in the material handling industry, supplying customers throughout the UK with high-calibre, quality pieces of warehouse equipment that will get the job done, regardless of the industry you work in or the nature of the stock you have If you would like further information about how you can purchase forklifts, reach trucks, stackers and more from us, or to lease or hire warehouse machines, get in touch with a member of our friendly, knowledgeable team today – we’re always pleased to hear from you.
