What do you do if your inventory accuracy and control need improvement?

1 Assess your current situation

The first step to improve your inventory accuracy and control is to assess your current situation. You need to identify the sources and causes of inventory errors, such as data entry mistakes, theft, damage, mislabeling, or poor storage conditions. You can use various methods to measure your inventory accuracy, such as cycle counting, physical inventory, or inventory reconciliation. You should also evaluate your inventory control policies and procedures, such as how you track, record, and update your inventory information, and how you handle inventory movements, adjustments, and discrepancies.

2 Implement best practices

The second step to improve your inventory accuracy and control is to implement best practices that can prevent or reduce inventory errors. For example, a reliable and accurate inventory management system can automate and integrate processes like barcode scanning, RFID tagging, or cloud-based software. Standardization and simplification of processes such as labeling, counting, receiving, issuing, and returning inventory items are also important. Optimizing your inventory layout by grouping similar items, using clear signage and codes, and ensuring adequate space and lighting is also necessary. Lastly, establishing and enforcing inventory control policies and procedures like setting inventory thresholds, limits, rules, defining roles and responsibilities, and conducting regular audits and reviews are critical for success.

3 Monitor and evaluate your performance

The third step to improve your inventory accuracy and control is to monitor and evaluate your performance. You need to track and analyze your inventory metrics, such as inventory accuracy rate, inventory turnover rate, inventory carrying cost, or fill rate. You should also collect and review feedback from your staff, customers, and suppliers, such as inventory issues, complaints, or suggestions. You should use this data and feedback to identify your strengths and weaknesses, and to make adjustments and improvements as needed.

4 Reward and recognize your staff

The fourth step to improve your inventory accuracy and control is to reward and recognize your staff. Your staff are the key to your inventory success, and it is essential for them to feel motivated and appreciated. You can incentivize them with bonuses for achieving inventory goals, such as accuracy, efficiency, or quality. Celebrate their success stories and best practices by highlighting their achievements, innovations, or improvements. Additionally, support learning and development by offering training, coaching, or mentoring opportunities.

5 Seek external help

The fifth step to improve your inventory accuracy and control is to seek external help if you need it. You may not have the time, resources, or expertise to handle your inventory challenges on your own, and you may benefit from the advice and assistance of external experts. To do so, you can hire a consultant or a service provider who can assess, improve, and manage your inventory system, such as an inventory auditor, an inventory planner, or an inventory software vendor. Additionally, joining a network or a community of inventory professionals who can share their knowledge, experience, and best practices, such as an industry association, a trade group, or an online forum could also be beneficial.

6 Keep learning and improving

The sixth and final step to improve your inventory accuracy and control is to keep learning and improving. Inventory management is not a one-time project, but a continuous process that requires constant monitoring, evaluation, and adaptation. You should always be on the lookout for new trends, technologies, and opportunities that can help you optimize your inventory system, and be ready to change and innovate as your business grows and evolves.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?