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
  • Expiration date

In addition to these mandatory elements, we can optionally print the following additional elements on the label:

  • Product
  • Category
  • 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.

This includes:

  • 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.

Start NOW

Read More

Related Posts

ERPAG Change Log 04-10-2024

ERPAG Change Log 04-10-2024

We prepared a new set of changes that are already up and running in your databases! Backdating documents - you can now change the document date: You can now undo document actions (such as pack, receive, invoice, record...

read more
Connecting IoT devices

Connecting IoT devices

Welcome to the era of automation. We stand at the threshold of a new age where the majority of tedious and repetitive physical tasks will soon become obsolete. We anticipate automating approximately 37% of current jobs within the next decade, with the potential for...

read more