For many companies, inventory spend is by far their biggest capital outlay and how well that stock is managed can make or break a business. Accurately tracking and managing inventory is pivotal to business success.
When considering effective inventory management three things come into play: people, processes and technology.
People
Staff are the heartbeat of any organisation and dedicated, well-trained employees are needed to drive the management of inventory at every level, from the ordering of stock right through to final delivery. All staff need to be fully on board with following the correct processes and the effective use of management software for a smooth operation.
Processes
Efficient processes are vital and many manufacturing houses are implementing what’s known as the 5S system to streamline productivity through consistent operations. Let’s look at these 5 methods in the context of inventory management:
- Sort
It goes without saying that all stock should be correctly sorted but be sure that the stock is regularly checked and unnecessary items, that are taking up valuable space, are disposed of.
- Straighten
Arrange your stock logically so that items can be easily found and picked up. Commonly used stock should be within easy reach.
- Shine
Invest in the right storage solution for the type of stock you carry so that the stores are always neat and tidy and everything is in it’s place.
- Standardise
Ensure that there is a standard process to follow for each procedure and all staff adhere to the standard for best practices within the workplace.
- Sustain
Regular audits should be performed to ensure that processes are being followed.
Technology
Cutting-edge inventory management software greatly simplifies the tracking and recording of stock movements and can be used to plan and manage all materials. Integrated Warehouse Management Systems curb unnecessary spending on inventory as they are able to track which products are in high demand and which ones are no longer needed. With just a few clicks, documents such as purchase orders, invoices, and reports can be generated, streamlining processes. The implementation of the right management software gives you complete control of your stock, improves ordering processes and the resulting data can give helpful insights on ways to save on business costs.
Dovetail has the Inventory Management Software solution for you.