Inventory management is the handling of stock or assets stored in various forms by a company waiting to finish its packing, processing and transporting. It is the backbone of a company, making its management policies and strategies utmost significance.
Erroneous unit measurement, incorrect records etc. are common inventory mistakes made every now and then. These sorts of mistakes can be the cause of profitless days in a company. You probably don’t want that; it’s not rocket science. Inventory management for small businesses especially is a complicated issue. Here are some common mistakes made by many small companies in inventory management.
Lack of trained staff:
Your staff at the inventory level is just as important as your staff on the 5th floor working on computers and software. The inventory manager must be a trusted, qualified person. He should be held accountable for the daily happenings at the inventory and must have control over it . It is absolutely necessity for the inventory staff to know about location and packaging of stocks, but it is also helpful if the staff from different departments are familiar with the inventory system. Training is normally provided by the sellers of your inventory management system. Grasp the opportunity and get your employees trained
Gone are the days of manual calculations and statistics. To err is human, and unforgiving is business. Everything nowadays, is done by computers. From barcode scanning to forecast demanding, its all done by softwares . This helps to reduce errors in inventory evaluations. If you’re using Excel even today, you might as well just use a pen and paper and start scribbling on a notepad. It is important to invest in a good software and keep track of your inventory.
Lack of warehouse organization:
It is important to know where your stock is organized inside a warehouse. When the time comes for shipment, you don’t want to run about the warehouse looking for the packages to be transported. Your accounting software reports must be out into use here. Keep check of all the popular items and organize them in specific locations. It is recommended that they be organized somewhere close to the dispatch facility. Remember that by just by rearranging your stock in a systematic manner, you can save up on a lot of money.
Few inventory checks:
Inventory checks must be frequent. They must be day to day, quarterly to quarterly and wall to wall. However, this mustn’t disrupt normal warehouse operations. Nobody has time for that. Just invest in a software that can keep a constant check of your assets. They prove to be extremely helpful in the long run especially when you are trying to back-fire at inventory problems or trying to change strategies.