In order to optimize inventory to the maximum, it is necessary to estimate the size of your business. It is not the same to apply the inventory organization to a small business or a corporation.
In this text, we will look at the organization of inventory management from the perspective of small and medium-sized businesses.
When we talk about the inventory management organization itself, we least think about the organization of the warehouse. Organizing a physical location for storing stocks is only one segment of the organization of inventory management.
The goal of establishing successful inventory management is:
- Optimizing storage
- Optimization amount of stock
- Minimize money in the stocks
- Taking into account the expiration of goods in stock
- The clear and precise location of each piece in stock
- A precise count of all quantities
- Stocks of finished goods
- Stocks consumables
- Raw materials
- Inventories assemblies and subassemblies
- Conducting a usable and unusable waste
- Optimization of pick and pack routes
Expected benefits from all these actions are:
Speed up inventory turnover ratio
Cut cost and expenses for inventory operations
Providing constant and accurate delivery time
Reassess Your Warehouse Floor Plan
Every time it starts with the first step, so our inventory planning begins with the floor plan of our warehouse. When we know how much space we have, we can determine stock types, groups, and categories. we can start making a floor plan. The floor plan should contain a schedule of racks and shelves.
Install Warehouse Racks and Shelves
Once we know the schedule, we can access the procurement and installation of racks and shelves in our warehouse. Each position in the warehouse should be marked as easy as possible to move and pick and pack the process.
One of the common mistakes is that useful waste and production residues are thrown into unmarked parts. We note that each piece of stock must have an unambiguous position, including waste and residues.
Label Everything In Your Warehouse The
next step is to label the goods. There are several types of labels. In this example, we will explain the most classic example, which is labeling, ie. labeling stocks.
Each label must clearly and unambiguously indicate a unique product.
The most common elements to be on the label are:
- SKU label
- LOT label
- SERIAL NUMBER
- Expiration date
In addition to these mandatory elements, we can optionally print the following additional elements on the label:
- Brand/Manufacturer name
- Location in warehouse
- Additional dates
Receive Goods Efficiently The
The next step is to organize receipt and The warehouse and stocks should be organized in such a way that no piece can enter or leave the warehouse without the approval of the authorized person in the organization.
- Marked physical location in the warehouse where the goods are issued
- Often at the location of receipt/issuance of goods should be organized and additional measured instruments depending on the type of goods to accurately determine the amount leaving or entering the warehouse (Barcode-readers, Scales, Flowmeters, etc.)
- Select a person who has all the necessary qualities to accurately record the entry and exit from the warehouse
Perform Regular Maintenance
From the organizational side it is very important to introduce regular inventories of goods to avoid creating surpluses and shortages of goods in stock.
Inventory checklists can be organized as thorough and quick.
Basic ones are done once or twice a year depending on the size of the organization, while quick lists can be done weekly.
In quick lists, you usually select a group, category, or specific brand and make a list.