Inventory management is an essential part of supply chain management, but it's not an easy feat. Thus, retail businesses must maintain accurate records of SKU-level inventory. A more accurate inventory can nip problems in the bud before they become big and meet consumer demands while also saving capital spent on surplus or unnecessary inventory. Hence, let's take a closer look at Inventory Accuracy and discuss the best methods to boost it. What is Inventory Accuracy? Inventory accuracy refers to how a business's inventory is being recorded, monitored, and updated to determine whether the company's physical stock available for sale in a store, warehouse or storage location matches with what has been recorded in the database. The two primary inventory-related records that should be reconciled for inventory accuracy are:
Why does inventory accuracy matter? Here's an example for you to understand. Assume you are running a business in Assam, and you have recorded 10 units of a particular SKU. However, only 5 are available in your warehouse in Assam. This will invite the following problems:
Best practices to maintain and improve Inventory accuracy:
Upgrade your inventory management system - Traditional inventory management systems are outdated, error-prone, and don't have the features you need to succeed in the online retail space. Considering the example stated earlier, a warehouse for rent in Assam with a reliable inventory management software or ERP system can give you deep insights into your stock levels, sync inventory across all sales channels, maintain item level accountability of your merchandise, etc. Run frequent and randomized inventory checks - Schedule a routine cycle count to get an accurate picture of the inventory you have in hand and what the records suggest. By conducting inventory auditing regularly, you will be able to prevent unchecked inventory from piling up, keep your records consistent, and minimize potential inventory errors. Define Internal Policies - Document all the procedures and policies to ensure that all of these inventory accuracy measures are effectively enforced. Develop clear guidelines for receiving and storing incoming inventory, handling damaged/expired inventory, transporting and storing inventory, etc. Leverage Inventory Management Technology - To reduce double counting, most warehouses in Assam use barcode scanners to track inventory. Nevertheless, the future of inventory counting is RFID (radio frequency identification), enabling you to scan an entire pallet of items in one go. The result is a reduction in the tedious tasks accompanying traditional scanners, such as re-orienting boxes to maintain the line of sight. Outsource to 3PL fulfilment providers - Instead of taking on the storage and distribution in-house, you can team up with a company that provides a 3PL warehouse in Assam. Some tech-enabled warehouses for rent in Assam are Protech Warehouse Bongara, StoreFresh, Coldman Logistics, etc. These warehouses in Assam are capable of picking, packing, and shipping orders, as well as providing you with comprehensive inventory reports and key distribution metrics that help manage your inventory effectively. Final words Knowing your stock levels and where it is located is essential for managing stock, avoiding high carrying costs, and shipping orders quickly and efficiently to customers. Therefore, Inventory accuracy plays a vital role in ensuring the right balance between customer satisfaction and company revenue.
1 Comment
9/6/2022 10:25:24 am
I love this blog. I don’t know what I’d do without you and your great info! Thank you so much!
Reply
Leave a Reply. |
Archives
October 2022
Categories
All
|