4 Common Inventory Faults and How to Escape Them
Learn How to Avoid Common Inventory mistakes
Along with the Sales numbers, inventory-cost reduction that also affect your bottom line. In the early 2000’s, Nike lost 100M dollars because of lack of inventory control.
Are you making these 4 inventory-management errors?
Lack of performance measurements
Inventory Performance measurement is a necessity as it would indicate as to how good or bad is the inventory management being carried out by a company.
Without knowing how quickly inventory moves through the value creation and delivery system, a company won’t be able to manage inventory levels.
A Good Inventory manager should monitor the fill-rate daily, track and work to improve these rates. Moreover, he must understand what they have, and where to find it in their warehouse.
Your company may also rely on inventory control systems to assess your current assets, balance your accounts, and provide financial reporting. An inventory control software is also a necessity to maintain the right balance of stock in your warehouses.
You will not lose a sale because you do not have enough inventory to fill an order.
When you have control over your inventory, you’re able to provide better customer service. It also gives a clear understanding of what is selling and is not.
Some Employees aren’t qualified to manage inventory.
The inventory managers need to make sure that his employees are qualified to handle your inventory and properly trained on your inventory management system to avoiding inventory issues.
In addition, they should hire the right people with the right professional experience and proper background to manage your inventory.
Failure to Accurately Prediction Demand
Developing realistic measures for how much forecast error you can allow without a SKU stock-out is essential. Companies estimate plus or minus 10 for this measure, which equals about two days’ worth of inventory a minuscule amount considering that companies often have weeks or months worth of inventory. A Successful prediction management and inventory planning require accurate data. producing the right number of items is a must. You are in trouble, if the calculations are off. A successful inventory manager should invest with Barcloud and Passport, because they are free from bug and data errors. Simply, they do provide accurate data.
Lack of automation
Using manual processes to track asset and inventory will cost you time and money. Especially, you have to fix errors one by one. A credible research has shown that people do make mistake in each 300 characters they enter. Manual processes are considered as disaster. The inventory managers need to automate in the inventory processes, and reduce the amount of time that is spent moving and counting items around the warehouse. This is where automation can play a critical role.
With Barcloud and Passport, accuracy is just a scan away. You won’t be wasting resources.
The ultimate inventory solution allows you to focus on other area.