Inventory management is a critical component to warehouse management. It plays a major role in warehouse planning, customer service, and budgeting. By keeping an accurate inventory you’ll be able to see the benefits in many areas of the warehouse. Below are 5 areas that show the importance of warehouse inventory accuracy.
- Planning
Accurate inventory data helps warehouse managers to determine if they can handle customer requests or projects with the items on hand. They’ll be able to know when to order additional items and over time, even be able to identify trends and make predictions about which items tend to run out faster than usual. With all of this, information warehouse managers will be able to plan and strategize in order to develop relationships with interested investors and clients who want to see that there are operational plans in place. - Customer Service
By maintaining accurate inventory records, warehouse managers will be able to quickly answer customers inventory-related questions. They’ll also be able to quickly fill customer’s orders since they’ll know exactly what is on hand and where it is located. By mastering these components, the company will be able to serve more clients and move more inventory through the warehouse. - Expense Control
Failure to maintain an accurate inventory can lead to having to send out customer’s orders at a rush. This can lead to an inaccurate order and incurring expedited shipping costs. Warehouse managers can also run into a situation where they need to order more product in order to meet a customer’s order only to find the original stock later. Replacing items this way can be very costly, especially if you are unable to sell that initially inventory and end up with extra stock. - Employee Metrics
Utilizing inventory accuracy as an employee metric helps to keep moral high which can translate into better productivity and fewer conflicts. If you define success as only losing one item per month and the employees meet this, you’ll have a definitive way to offer them positive reinforcement and rewards for their hard work. Without accurate inventory records warehouse managers won’t know if their staff deserves a reward or if disciplinary action is needed. - Employee Skills
If employees are able to maintain an accurate inventory they will have more time available to work on other things. They will be able to take on additional responsibilities like investigating new vendors or look into ways to make the warehouse operations more efficient. This offers a two-fold benefit. The company will have additional operating options and higher production levels and employees can explore other skills they may have.
Maintaining an accurate inventory will allow you to improve business performance and run operations more efficiently. You’ll be able to see positive benefits throughout your entire supply chain. By beginning to manage your inventory in real-time today you’ll be able to provide better fulfillment to customers tomorrow.