Increasing inventory accuracy leads your business in the right direction. Thus, inventory accuracy is crucial, but it is also true that achieving it is difficult. Although paying attention to inventory storage and management solutions influences the bottom line. Also, businesses get rid of out-of-stock items, resulting in a loss of profits.
Here we look at some evidence showing the advantages of accurately maintaining inventory. Also, it will tell you how to manage inventory properly.
PART 1
Why does inventory accuracy matter?
Inventory accuracy gives businesses an idea to match inventory records with their actual physical inventory. Not getting 100% accuracy ensures some restrictions in order processing and inventory handling. Inaccurate inventory brings complications for your business, such as:
1. Accepting a customer order for items you don’t have
If you don’t have accurate inventory, you may not know how much inventory you physically have. The result is that you take the order from the customer but are not able to deliver it on time. This frustrates the customer.
2. Failing to identify near to expiry inventory on time
Identifying expired inventory and making a proper strategy to sell it before it expires is another crucial consideration for having accurate inventory. This assures businesses that all inventory is consumed before the expiration date and that they have an accurate inventory.
3. Not getting the right strategy to dispose of expired inventory
Another reason for that perfect list is that you have a proper strategy to dispose of the expired list in their respective way. Proper disposal of expired inventory assures businesses of an accurate and correct inventory and avoids any adverse delivery conditions.
PART 2
Know how businesses struggle to maintain inventory accuracy
As inventory handling is a critical task, then it is a must to know how businesses struggle to maintain inventory accuracy.
1. Keep stock on well-organized shelves
Ensuring your warehouse is consistently managed in an organized and orderly way is a real challenge. A properly-labeled inventory space with clear signs, item descriptions, and clear, easy-to-read maps of the warehouse are essential components of a well-organized warehouse.
2 Adopt practices for naming and labeling your inventory
Well-organized inventory means that every warehouse staff will be able to find the requested inventory. This will enhance the order delivery time and customer happiness.
3. Establish and follow effective storage/ receiving rules and procedures
Your warehouse must have documented policies and procedures that everyone needs to follow in the staff. These documents may include procedures for physical interaction, material handling, safety guidelines, and quality of reporting. This avoids any mistakes in inventory management and enhances communication.
4. Limit and monitor access to inventory
Only allowing access to employees who require inventory accuracy measurements is a simple way to protect inventory management. As a result, it is much simpler to administer the system, reduce errors, and introduce changes as needed.
5. Take advantage of technology
Another struggle any business faces is searching for the best-suited inventory software. The inventory management software can make inventory control and organization much easier and more accurate. Barcode technology and RFID are some important tools that software offer to quickly detect, count, and monitor the inventory accurately.
PART 3
How to improve your inventory accuracy?
1. Choose a trustworthy inventory management plan, then stick with it.
2. Be aware of your opponents.
3. Look at every connection/ process in your supply chain.
4. Choose a technology/ software based on your needs.
5. Establish product tracking throughout the order to distribution.
6. Ensure that your staff members are properly trained and educated.
7. Create a program for continuous cycle counting.
Wrapping Up
For your business to survive in the competitive marketplace, you must increase the accuracy of your inventory. Knowing exactly what you have in inventory and where it is is essential for managing stock, avoiding high carrying costs, and promptly delivering orders to customers. It can help you maintain the perfect balance between customer satisfaction and business profits.
To improve the effectiveness of the delivery process and prevent shrinkage and shortages in your inventory, you can select an efficient inventory software solution.
