What are the most common mistakes when managing warehouse inventory?

In my view most supply chains went through this pain during the pandemic. Having the right investment in ensuring we pick the signals of demand in the front end of the chain is of immense importance. Having the right digital solution and working closely with your demand givers “Customers” is the key. Traditionally across the globe “Customers” believe the job of knowing the demand is of the Supplier. Most “Customers” realised the fallacy of this and have helped Suppliers get past the pandemic with a win win solution. So it is critical for industries to build on this if we have to improve. Furthermore similar visibility has to be created with downstream partners. Many suppliers learnt it by burning their fingers. Clearly it is a learning.

I represent trucking companies, so I will share my point of view regarding the topic. Most common mistakes: - Communication ( leak communication with the supplier ) - Data Entry ( Human errors ) - Shipping / Receiving Procedures ( Inaccurate inventory levels & delays ) Trucking companies mostly struggle with delays, sitting, and low compensation about it.

Insufficient training for warehouse staff on inventory management procedures and technologies can result in errors and inefficiencies in inventory handling and tracking. Manual data entry errors can lead to discrepancies between physical inventory and recorded inventory levels, causing inventory inaccuracies.Failing to create a comprehensive inventory management plan can lead to disorganization and inefficiency in warehouse operations.

In procurement, poor forecasting undermines strategic planning by leading to inaccurate inventory levels and supply chain disruptions. Inadequate predictions result in overstocking or stockouts, impacting cash flow and increasing costs. Suppliers may face challenges in meeting demand, affecting relationships and contractual obligations. Overall, deficient forecasting hampers procurement ability to optimise resources, maintain cost-effectiveness, and adapt to market dynamics, ultimately jeopardising the efficiency and reliability of the entire procurement process.

Na minha trajetória na gest?o de estoques em empresas no Brasil, observo que, mesmo em meio à Revolu??o Industrial 4.0, muitas organiza??es persistem em adotar métodos antiquados, como o uso de papel ou inúmeras planilhas tratadas como se fossem bancos de dados. Ao mencionar a implementa??o de sistemas WMS (Warehouse Management System), é comum encontrar resistência por parte de diretores e CEOs. Muitos ainda mantêm a vis?o simplista de que a gest?o de estoque se resume apenas ao registro de entradas e saídas, ignorando completamente a parte mais estratégica e inteligente envolvida na gest?o eficiente de estoques. é imperativo que as empresas compreendam a amplitude e complexidade desse processo e reconhe?am a importancia das tecnologias!

Imagine a warehouse bustling with activity, forklifts zipping by, and shelves overflowing with goods. But amidst the organized chaos, a hidden enemy lurks: inadequate inventory control. This silent thief can lead to a major headache for transportation managers – inventory shrinkage. What is Inventory Shrinkage? Think of it as goods mysteriously vanishing from thin air. Theft, damage, and even simple human error can contribute to this unwelcome decrease in stock. Shrinkage inventory can: Eat into profits: Lost or damaged stock translate to lost revenue. Tarnish your reputation: Unfulfilled orders and dissatisfied customers erode trust. Create operational headaches: Inaccurate inventory levels disrupt planning and fulfillment.

1.Large of an Inventory Reports show that most businesses have 30-40% of their working capital tied up in inventory.If there is high amount of product than what demand calls for,we won't be able to fulfill orders optimally.Large stock levels just lead to more management headaches, but cuts profits also. 2. Inadequate reports and demand forecasting. When companies don’t use or have access to accurate information such as sales trends,best-selling products, customer behavior and the like – they fall into the trap of ordering too much inventory.This results in problems of an excessive amount of finished goods,order few finished products,experience shortages. 3. Outdated methods to track items like manual Inventory tracking and excel spreadsheet

Practicing proper inventory control methods is crucial for complete supply chain cycle in any manufacturing environment. One of the important issues in inventory management is manual inventory adjustments without justification. Not all the facilities has the luxury to completely automate the inventory management process(i.e barcodes, scanner, bin locations etc)in which some part might be automated and few will be managed manually where the challenge comes to the light. Any oversight on this manual inventory and adjustments causes a huge impact on production needs and finally on customer fulfillment rate. All I would like to emphasize is to verify and justify any inventory adjustment and get to the root cause.

To avoid issues in inventory control. Warehouse lead or manager has to do proper cycle counting on regular basis and make the SKUs are as per the standards and in proper locations to avoid wrong picking. Make sure to plan the storage according to the demand of the SKU.

Adapting Lean Principle "Bring the Work to the Worker" not worker to work surely helps improving Layout and Goods flow. Even smallest changes such as rightly positioned Underpasses among Rack Rows help to reduce MHE movements ftom aisle to aisle without coming out from Rack Rows

El dise?o del almacén es fundamental, la correcta disposición de los items en función de su movimiento permite ahorrar tiempo y espacio. Soy de los que considera además, que un dise?o lógico, permite memorizar ubicaciones y procesos, haciéndolos aún más expeditos.

An inefficient warehouse layout can be exacerbated by a lack of flexibility to adapt quickly to changes such as demand fluctuations or supply chain disruptions. We all saw that during COVID. Have we leaned something out of that?

I don’t think layout is a deal breaker on getting the job done but poor layout or poor maintaining of the layout can make it difficult for certain employees. For example if your morning shift is constantly rearranging the product that the night shift then has to pick your night shift will be less productive over if the product stayed in the same space. Overall not a deal breaker but layout is definitely a big factor when considering efficiency

Not just a design it takes stages of confirmatory physical,system,documents. Thats what we call tripods.in most warehouses the documents must be inparallel with documents signed and validated in the system entry. With tje expertise of a people behind in it.

The change management is a key element in Sales & Operational Planing. Keep the focus in continuous improvement and “walking we build the way” is other best practice as well.

Communication between ALL operational areas is key in establishing and maintaining a healthy and accurate inventory. This includes vendor and procurement planning to set up a solid supply chain, supply and operations planning to ensure efficient and timely inbound deliveries, and a well planned and executed warehouse/cycle counting process flow that everyone understands and follows. Failure to have regular, two-way communication between all involved parties will lead to disorganization and ultimately failures at any or all points in the process. Establish regular meetings, allow all parties to have equal input, and be prepared to evolve the process as business needs change.

Communication is key to maintain and manage a successful warehouse operation. Organising regular face to face meetings with the management team can ensure forecasted volumes, potential new accounts and current issues can be discussed in full detail and agreed by all key stakeholders. This can be backed up with an email to confirm key points to ensure full understanding and agreement to try and avoid miscommunication.

Communication is key to make sure information and knowledge are transferred. By this will be able to have a proper educated plan and execution.

Inventory is caused by: 1. Wrong picks 2. Wrong put away 3. Theft 4. Incorrect UOM It can be all of the above. Extra space or communication can’t influence accuracy. Forecasting and supply does not affect inventory accuracy only availability.

People in WH should have planning trainings. When looking at inventory and space management, it is very common not to have a planning approach that can allow the resources to view how future inbound-outbound profiles work. A WH is a hinge in between the supply and the demand. Hence, the correct planning of the inbound volumes and outbound volumes gives the operation a clarity of what will be managed, how long will it stay, and how-when will it be shipped to the next point (internal customer, external customer).

Neglecting training programs for warehouse staff impacts operational excellence. Regular training sessions and skill development programs improve efficiency and accuracy.

Training and development is key to continuous improvement in any warehouse. You can have the best tools, technology and processes in place. If the employee are not trained and constantly challenged to Improve their skills and knowledge the operation will struggle to be sustainable.

Insufficient employee training may result in errors during receiving, picking, or packing processes, impacting inventory accuracy. Implementing regular training programs ensures staff is well-equipped to handle inventory tasks effectively.

Before undertaking training identification of the right person for the right job is very important. Only a person having some inclination and interest in the kind of work they are performing will undertake training to improve their skills. After employing the right person their skills can be improved by regular training modules. On the job training can be the best teacher to the person who takes pride in their workmanship and would relegate the requirements of more detailed training.

Failing to evolve with changing demands and technologies hinders warehouse optimization. Embracing continuous improvement methodologies fosters adaptability and efficiency.

Continuous improvement is the process of identifying and implementing changes that can improve the quality and efficiency of the warehouse inventory management. No continuous improvement can result in stagnation, complacency, and loss of competitive advantage. No continuous improvement can also prevent the transportation manager from adapting to the changing customer expectations and market conditions. To avoid no continuous improvement, transportation managers should monitor and measure the key performance indicators of the warehouse inventory management, solicit and act on feedback from the warehouse workers, suppliers, and customers, and seek and apply best practices and innovations from the industry and beyond.

En plus de ce qui suit, il ne faut pas occulter les erreurs dans la préparation des commandes et les retards dans les livraisons qui engendrent souvent des co?ts.

Lack of continuous improvement in warehouse inventory management is like repeatedly fighting fires without finding their cause. This oversight leads to recurrent problems and inefficiency. To prevent this, warehouse managers need to adopt a proactive approach, constantly evaluating and improving operations. This involves analyzing challenges deeply, applying lessons learned, and embracing new technologies and strategies. By doing so, managers not only extinguish immediate issues but also prevent their recurrence, ensuring a dynamic and competitive warehouse environment.

Estoque sem a cultura Lean, é uma torneira aberta para os custos operacionais. Muitas vezes a falta de padr?es e processos traz o custo alto a empresa. Outro ponto é o mapeando de fluxo de valor. Enfim, a cultura Lean n?o é para mostrar que a empresa tem um programa de melhoria contínua, mas sim para desenvolver a cultura colocando o sentimento de pertencimento a equipe do estoque e reduzindo os custos nas opera??es de estoque.

If you want to have proper inventory management then develop SOPs, Sops of Daily Counts, Cycle Counts, Monthly IRA. Most importantly daily checks of In and Out. Once SOPs are developed, have proper training of those to the down level and follow it rigorously. I have seen live examples whenever there is a miss on SOP, you have missed your inventory. Simple definition. Lastly, develop a system that it should only be systematic, minimize or eradicate any kind of manual working. Once it's done you will have the results upfront.

Changing Market Dynamics/ Technology causes obsolete inventory. Although this could be part of poor forecasting but often enough is overlooked as they are not always as clear

I believe cannibalisation and substitution must also always be considered. Is the new product you are bringing in going to affect sales of the ongoing product. What impact would that have on your overall inventory level and how quickly can you acknowledge that from a demand planning perspective.

A ausência de janelas para inventário cíclicos e a falta de um pré-inventário podem representar erros graves no controle de estoque. Tais falhas podem resultar em discrepancias significativas, acarretando prejuízos financeiros e problemas operacionais para a empresa. é crucial implementar processos robustos de controle de estoque para evitar tais consequências.

In my experience.. on a strategic level: organization (commercial/ operations teams) alignment and clear "go-to-market" strategy is key (e.g. priority SKU's, customer service level agreements by channel, supply network design). On an execution level: timely reviews such as inventory reconciliations and warehouse provider performance reviews are important. Good inventory controls and security also need to be in place.