Tracking your inventory is a crucial part of warehouse operations. It helps you optimize your storage space, avoid stockouts, reduce errors, and improve customer satisfaction. But how do you track your inventory effectively and efficiently? In this article, we will explore some of the best practices and methods for inventory tracking in warehouse operations.
The first step to track your inventory is to choose a system that suits your needs and goals. There are different types of inventory tracking systems, such as barcode, RFID, or IoT. Each system has its own advantages and disadvantages, depending on the size, complexity, and nature of your inventory. For example, barcode systems are simple and low-cost, but require manual scanning and updating. RFID systems are more accurate and automated, but also more expensive and complex. IoT systems are the most advanced and versatile, but also require the most integration and maintenance. You should evaluate your budget, resources, and objectives before selecting an inventory tracking system.
Ideally to implement RFID technology to keep track of the item regardless of its location in the warehouse. Another is to have a WMS or order-management system to keep track of daily in and out of item.
Obviously we need a good team and trained staff with IT skills. Handle inventory is a very complex task and needs quality work to track every step of the movement of inventory. If you have multiple inventory and several medium and large clients on board your company. Better be sure you have a good inventory management system. Skilled workers and people who are properly trained. Make sure every employee is trained in their role to address each client’s needs. Every client inventory needs are different. We owe our clients the best services. If you service your clients with quality services they will be loyal. Faked service will be spotted and soon you will loose them. Be a service Minded person up-skill always
The next step to track your inventory is to implement software that can manage and analyze your inventory data. Inventory tracking software can help you monitor your inventory levels, locations, movements, and transactions. It can also help you generate reports, alerts, and insights that can improve your inventory control and accuracy. Inventory tracking software can be standalone or integrated with other systems, such as ERP, WMS, or CRM. You should choose a software that is compatible with your inventory tracking system, scalable to your business growth, and user-friendly to your staff.
The third step to track your inventory is to train your staff on how to use your inventory tracking system and software. Your staff are the ones who handle, store, and ship your inventory, so they need to know how to follow the inventory tracking procedures and protocols. You should provide them with clear and consistent instructions, guidelines, and feedback on how to scan, update, and verify your inventory data. You should also encourage them to report any issues, errors, or discrepancies that they encounter during inventory tracking.
The fourth step to track your inventory is to conduct regular inventory audits to verify the accuracy and completeness of your inventory data. Inventory audits can help you identify and correct any errors, gaps, or losses in your inventory tracking system and software. They can also help you evaluate the performance and efficiency of your inventory tracking processes and staff. You can conduct different types of inventory audits, such as cycle counts, physical counts, or spot checks. You should choose a frequency and method that matches your inventory turnover, complexity, and risk.
The fifth step to track your inventory is to optimize your inventory layout to facilitate your inventory tracking system and software. Your inventory layout can affect how easily and quickly you can scan, locate, and access your inventory. It can also affect how well you can utilize your storage space and prevent damage or theft. You should design your inventory layout to maximize visibility, accessibility, and organization of your inventory. You should also label your inventory and storage areas clearly and consistently to avoid confusion or errors.
Review your slotting strategies, why? Faster, more accurate picking – There is less guesswork, bottlenecks, and more economical movement by the picker(s) when inventory is optimally located. Less handling costs – Moving around within a warehouse consists of the majority of a picker’s time, and those hours can be saved via efficient picking. More inventory in less space also reduces cost on the storage side as well Better storage optimization – Storing inventory in a strategic manner results in better utilization of space. Less shrinkage – Make finding inventory easier with fewer items lost in the shuffle, and storing heavier items at-or-near the bottom of the rack (cart level) should result in less stock tumbling to its doom.
The final step to track your inventory is to review and improve your inventory tracking based on your data and feedback. You should monitor and measure your inventory tracking metrics, such as accuracy, efficiency, and productivity. You should also solicit and analyze your inventory tracking feedback, such as customer satisfaction, staff satisfaction, and system performance. You should use your data and feedback to identify and address any issues, challenges, or opportunities in your inventory tracking. You should also update and adapt your inventory tracking system and software to your changing needs and goals.
My own industry way of tracking inventory is system based where the serials for each stock is dispatched on the sales and distribution portal. The inventory officer dispatch an order after invoicing. Thus inventory can be tracked using the available system serials with the physical stock available. Bin cards are also used manually to track record of daily sales.
Besides picking an inventory tracking system and software, it's key to keep training your staff and encourage them to improve continuously. Making sure your team knows how to use the system and follows the right steps can really boost your inventory management. Regular training sessions and feedback can help everyone stay up-to-date with the best practices and new technologies in inventory tracking.