A good warehouse management is key for the success of any organization. On the contrary, poor control can lead to losses, obsolescence, expiration, theft and, ultimately, failure.
In an increasingly demanding and dynamic market, companies with inventories have to constantly reinvent themselves, improve logistics management and optimize their purchasing processes. In addition, they need to keep stock control in order to meet demands but without holding too much stock.
Logistics management and digitalization are paramount to the success of companies that need to deal with distribution. To help you managing your warehouse management and keep inventory under control you can follow this points that can help your company to improve warehouse management.
Real-time tracking gives your company up to date information so your data is current with the actual items you have in your location. It optimizes the supply chain, and keeps track of product movement, leading to overall efficiency. This method allow your business to analyze real time data in order to schedule raw materials or goods optimally and eliminate stock-out situations as well as excessive inventory.
The results of physical count need to be compared with the ones given by management solutions to avoid any mistakes that might lead to unpleasant surprises such as missing stocks or excess inventory.
Variation of existences
Companies have to calculate consumption of stocks, for which the purchases made must subtract the stocks not consumed. It may also be the case that, in one year, more stocks were consumed than the amount purchased by the company.
Components of inventories
Stock inventory includes raw materials, products in progress or semi-finished, finished products, by-products, waste and recovered materials, other supplies and merchandise. The stocks of these goods are necessary for the manufacture of products sold by the company, in the case of production companies, and merchandise stocks are necessary for companies that distribute products.
Avoid excess inventory
Excess stocks are a problem that companies need to face because it can tie up capital that could be used in other areas such as research and development. Excess inventory could increase storage space. A little planning can help you to minimize loses. Returns, donations and disposal are some ways to get rid of excess inventory.
Obsolescence and expiration
Companies cannot sell expired items and obsolete items are difficult to get rid. The storage of obsolete products is a problem that many companies face, which forces them to incur in additional expenses to eliminate excess inventory such as those derived from destruction, transportation, etc.
Inventory valuation is the monetary amount associated with the goods in the inventory at the end of an accounting period. The process has to be done at the end of every financial year in order to calculate the cost of goods sold and the cost of the unsold inventory. It needs to be included in the General Accounting Plan.
Your company should always have new innovations and processes on its radar. This way, you will be on the cutting edge of new technology, and can stay competitive. In conclusion, optimizing your inventory can be tough and to do so you need to find what works for you.
DataScope is a platform which allows various industries to streamline, organize and evaluate the work of their field staffs thanks to online forms which provide real time indicators 100% adaptable to any field.