3 October 2021 Discover how to increase inventory control, ensuring the best performance of your warehouse If there is something that greatly affects intralogistics management, it is the lack of inventory control. In recent posts, we have addressed the causes and consequences of ineffective control of stored items. Demonstrating that when there are discrepancies between what is in the system and what is actually in the warehouse, the risks of damaging operations, incurring financial losses, and even generating customer dissatisfaction are enormous. Hence the importance of improving inventory management. This is what we will address in this article. First of all, it is worth stating that: the control in the system must match reality. This is the main goal, as it ensures good purchasing management, a strong relationship with suppliers, and greater efficiency in both receiving products and their shipping and replacement. Think that the product registration exists precisely to facilitate the work of all sectors, allowing each area to control what the stock is, if there are products available for sale, if it is necessary to restock, if there are items close to the expiration date, among other information. It is based on this data that the Purchasing and Sales teams develop their strategies, meaning the strategic sectors for the company’s profitability depend on a high level of stock accuracy. With this idea in mind, we can move on to ways to ensure optimal inventory control. But it is essential to make another observation: your entire team must commit to working towards these improvements. In this sense, motivating employees, demonstrating that a high stock accuracy index benefits everyone, is part of your role as a manager. Improving inventory control in practice Below you will find a list of 10 tips to improve your logistics management! 1. Track title performance through indicators Having information on how many products are arriving at your warehouse, the number of stored items, and how many are being shipped is essential to keep track of your inventory level. These data must be recorded very carefully so that they are consistent with reality. It is also necessary to monitor the work performed by operators, following the tasks each one performs, as this prevents damages or losses from being omitted. Anyway, it is important to have KPIs and reports that tell you how things are going in your warehouse and what needs to be improved. 2. Conduct periodic inventories The best way to avoid significant losses is to perform cyclical inventories, keeping track of stock levels. Conducting periodic counts also allows you to identify any small discrepancies that may exist between the physical stock and the system stock, allowing you to make corrections quickly. 3. Improve your product verification processes for incoming and outgoing goods Improving the control and tracking of products upon arrival and shipment allows you to keep your stock always updated. Therefore, invest in tools and processes that facilitate these operations and do not forget that all details of a product must be recorded when it enters the warehouse. This information is essential for the sales team and also to qualify your logistics management. 4. Define a minimum and maximum stock level Another essential measure is to establish the minimum quantity of a product in stock – so that it does not run out and meets all demand – and the maximum quantity – so that stored items do not stagnate. When the minimum and maximum stock levels are defined, it is easier for the Purchasing team to determine the right time for replenishment. 5. Align inventory control with sales goals To set the minimum and maximum stock limits, it is necessary to know well how sales are going. It also helps you determine deadlines and replacement methods. Therefore, the exchange of information between the Logistics and Sales sectors is fundamental. One area will always help the other with data on their operations. 6. Safety stock Safety stock is important to cover unforeseen variations in your business. This is a small margin that helps ensure sales. 7. Try to allocate products in suitable spaces Respecting product storage rules is essential to avoid losses. It is possible that adapting your warehouse to meet the specific characteristics of an item requires an investment, but in the future, it will prevent you from suffering losses due to incorrect allocation. 8. Plan product reordering in advance Planning is the watchword! Plan stock replenishment in advance. Don’t let your products run out before thinking about it. 9. Keep track of information about your market Pay attention to news and information regarding the market in which your company operates. This can affect sales volume, and your warehouse must be prepared to meet any new demand. 10. Rely on the help of a Warehouse Management System (WMS) A Warehouse Management System (WMS) software can greatly help you improve control and accuracy of your stock. This is because it allows process automation, preventing failures that generate losses, besides offering tools that ensure more rigorous control of all information related to your warehouse. Innovation is essential for the survival of your company in a highly competitive market. Therefore, investing in technology should be one of your priorities if you want your company to grow and stand out. Think about it! 10 Tips to Improve Logistics Management Deagor WMS per ecommerce può aiutarti!