Monday, April 9, 2007

Setting Up Your Supply Chain Strategy

When you are part of a supply chain or are in charge of managing one, it is important to have an effective supply chain strategy by which you perform all transactions between each link in the chain. What are the important aspects of the supply chain strategy that you should consider in putting together a control system?

Who are all the parties?

In any supply chain, you’ll have several links, all of whom must be satisfied with the outcome of their own individual transactions. None of them are concerned with what happened prior to their link in the chain, and none care nearly as much about the transactions that take place later down the line, as long as clients are happy. Therefore, it is your job to know who is being dealt with at which stage of the game, and you have to be certain that all are content with the proceedings. That includes the manufacturer, the supply house, the representatives, the distributors, the transportation agents, and the end users.

What is the time frame for completion?

Of course, your supply chain strategy has to have a time management card in the deck. Everyone at each stage wants prompt service, and this usually means that they need their supplies “yesterday”. It is your job to route out a strategy that delivers everything in a timely, fast, efficient manner while maintaining quality of products and services. Building a precise schedule that all parties adhere to is essential in creating a regimental process that doesn’t crack under pressure. In order for that to succeed, however, your tightly planned schedule must also have a small amount of wiggle room for extenuating circumstances.

Packaging, labeling, and shipment must be accurate.

There are several areas in which delivery could go wrong, causing problems with the next link in the chain. All product labeling and packaging must be clear and concise, and the process of creating these packages and labels must be carefully adhered to in order to assure that there are no mislabels or improper packaging leading to the shipment of the wrong product to the wrong source. Computerization of this process will eliminate some danger, but human error can always occur. It is best to have a process in place of double- and triple-checking each item that is being shipped to reassure that nothing is incorrect.

Tracking the flow of supplies down the chain is vital.

Only tracking the products to find out if your scheduling requirements are being met and all links in the chain are satisfied with their service will tell you if your supply chain strategy has been successful. Getting feedback from all sources from the top of the chain to the bottom will assist you in knowing where adjustments must be made to increase efficiency and time management. It will also help you to identify which suppliers are the most proficient in meeting your delivery needs and time constraints so that you can narrow down the number of people with which you must consult in order to keep the flow of supplies moving swiftly.

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Product Inventory Management Made Easy

There are several ways in which you can simplify your system of product inventory management, and choosing the methods and procedures that suit you is essential to your ability to adhere to the guidelines that you set forth. After all, if you implement a procedure that you don’t truly feel is important or integral to your system, then it will be difficult for you to follow it, as well as to enforce adherence to the policy with your staff. Here are a few suggestions to get the wheels in your head turning so that you can decide on the proper product inventory management strategies for your department.

Organization

Perhaps you are having trouble determining how to organize stock within the space provided. Several methods could assist you in making this decision. First of all, you’ll want the most popular products to be the most easily accessible, since these will be accessed most frequently. Next, you’ll want to map out the space you have and look at the size of items you stock, as well as the quantities you keep. Drawing it out on paper and scratching out where each item would best be located to maintain organization while still making efficient use of the room is a great product inventory management strategy.

Analysis

Don’t just assume that all items you have in stock when you take over the product inventory management process are necessary. If you look through sales records and find that a particular item hasn’t sold in months, you may want to do away with that item entirely. In fact, depending on what the product is, how large a quantity you have in stock, and the number of other items for which you need more storage space, you may determine that the best course of action is to simply write it off. You could even offer it at reduced prices for quick sale to help cut your losses, but it is best to remove it and make way for items that bring in revenue.

Budget

Work within a budget. Remember that, just because you have space for more stock, it doesn’t mean you have to fill that space. Sometimes, it’s best to leave empty bins in the warehouse where in case you need it in the future. For example, you have a product that goes on sale and the demand soars. This space can be used to store temporary additional stock of that item. It is better to have open space than to overextend the budget by ordering too many items. Also, having too much inventory on hand detracts from the value of the company. Avoid this situation because it doesn’t pay to show net worth in the red.

Tools

Make use of software and other tools you have for product inventory management. Most of the software packages available will give you analysis reports that can help you make better decisions in the future and help you track the goods you warehouse, taking a lot of stress and strain off your shoulders. Let the computer do the work and the worrying while you just motivate yourself and your team to maintain a free flowing inventory process.

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How Much Do You Know About Inventory Management Systems?

Have you had a chance to analyze several inventory management systems in your time, or have you never worked with any computerized systems for inventory control? How much do you really know about how inventory management systems work? While you may think you know a lot about their uses and how they may fit your needs, you could be way behind on the current technology as well. Let’s take a quick look at the many things an inventory management system can do for you.

Database Storage

Basically, most inventory management systems are built off database technology. The number one function of a database is storage of information, and this is one of the most important aspects of inventory management. You need a place to log every piece of merchandise within your inventory where you can access it again easily.

Accessing Information

An inventory management system database will also allow you to access the stored information with a few clicks of the mouse. In fact, the information will be searchable by various avenues determined by the creator of the database. For example, if your inventory consists of perfumes and colognes, you can search by manufacturer, name of the perfume, whether it is for men or women, and cost. You can even include a “field”, or search topic, for the UPC code or other identification number.

Indexing the Information

Today, advanced inventory management systems enable you to view and print various reports, including the net value of all items in stock, a list of the most recently sold items, lists of items that are low in stock, merchandise that hasn’t sold at all in a certain period of time, and, if you have perishables, items that have reached or exceeded the expiration date. This and much more can be reported to you so that you can adjust your inventory as necessary to better serve your customers, as well as to increase your profit margins.

Ordering

Some inventory management systems will assist you in creating order lists of the most commonly ordered items so that you have a quick reference and can complete the order process faster and more efficiently. In some cases, you can actually use the system itself to compile the order and forward it via email to your supply house so that you don’t have to worry about human error on your part in recording the correct item numbers.

Labeling

If you wish to create your own internal labeling system for your inventory for purpose of product identification, which is always a good idea for shelving and storage accessibility, you can utilize your inventory management software to create proprietary product numbers for the items you stock and to create and print barcodes and labels for those items, allowing you to quickly mark and stock each piece of merchandise quickly and proficiently. Using the complex barcodes will also allow the scanning of items so that there is never human error caused by inputting incorrect information or fumbling with a keyboard.

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Using Inventory Asset Management Software For Cleaner Results

Inventory affects your net worth and therefore is important in the listing of your assets for tax purposes. In order to better manage this, you should look into inventory asset management software. These programs allow you to electronically measure the value of your inventory based on several factors, to adjust it as needed, and to include it in your divulged assets for tax purposes. Because it is electronic and not hand written, the results are much cleaner.

Start by migrating your entire stock list into your inventory asset management software so that you can begin to analyze the material. This will allow you to see the exact quantities and costs of each and every item in your warehouse electronically.

Adjust the value based on your intentions. You can either list the cost of the item, or you can enter the retail value for which you can sell it, giving it a higher net worth. Depending on how you do your bookkeeping in other areas of the business, you can choose how you will configure the actual value of these assets.

Next, you can choose to devaluate the items based on age. If some of your inventory has been around for quite some time, the value may have depreciated, much like other assets. Especially if you have inventory of computers or other electronic devices, you should consider this option. Such materials are constantly being upgraded and replaced, meaning that any models that aren’t current are most likely of less value than when they were purchased. The inventory asset management software then gives you an adjusted net worth based on the depreciation percentage that you enter.

Now, the only thing you will have to do is maintain the database within the software system, adding new product upon arrival and filing into the current inventory or upon processing an order and shipping out any items in your warehouse. However, when doing so, remember that you may have to make financial adjustments as you go when you have depreciated any materials that are later purchased for the original sales price. You may want to get some pointers from an accountant or bookkeeper on how to maintain the balance as needed in these instances.

Inventory asset management software is a beautifully advanced method of computerizing your net worth, and anyone who keeps a large quantity of items in a warehouse for an extended period of time should consider implementing it into their inventory management and taxation processes.

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Building Your Parts Inventory Management Strategy

It may be quite simple to keep track of items stocked in your warehouse when you are storing inventory of large distinctive items, but parts inventory management can be more difficult. You may have several parts that are identical but because they are different brands, they must be kept separated and properly indexed. Building a strategy to simplify your parts inventory management process will make your job much easier and help your staff to keep the warehouse more organized with less effort.

Bin Assignment

For some, it makes sense to stock similar parts near each other. For example, if brand A fuse and brand X fuse are the same part, you may feel that they should be located in the same general area. However, in many cases, this can lead to mistakes when you or an employee is in a hurry, either grabbing the wrong part or stocking a new shipment in the wrong bin.

A better parts inventory management solution may be to organize parts by brand. In other words, brand X fuse is now with in the same general area as brand X diode, while brand A fuse is far away with other items manufactured by the same brand. This can avoid a lot of confusion.

Importance of Labeling

As you learn more about parts inventory management, you’ll begin to understand why proper labeling should be prominent on all parts in your inventory. If you stock items so that labels can be clearly read or scanned, it is much simpler to pinpoint and correct any mistakes, as well as to prevent errors in the first place. Barcoding is usually the best solution for labeling, since it must be read by a computer or scanner. This eliminates an area where human error could cause a breakdown in the system.

Climate Control

Be aware that, often, certain mechanical and electrical parts must be kept within a certain temperature range and may require a completely dry environment. In fact, when you have a number of electrical products together, you may also want to have a heavy airflow in the area to prevent static build up. Maintaining the proper temperature and climate is essential to parts inventory management, especially when dealing with delicate materials.

Overall, it isn’t all that difficult to build your parts inventory management strategy. A lot of it is simple common sense, combined with determination and organizational skills. As you become more experienced, it will only get better.

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The Basics Of Production Inventory Management

Production inventory management differs from general warehouse management because it involves the determination of how quickly to produce a particular product. The factors involved in many cases are similar, though there are some variances in making the final decision as to how quickly manufacturing should push items through the production line.

Available Materials

Of course, the first concern in production inventory management is on the front end of the process. If you don’t have the materials required for production, then you can’t move forward in providing the products to others. You must make certain that you have all the supplies you need, from raw materials to factory workers, to complete the production process.

Supply and Demand

You must determine the current demand for the product on the market. Good production inventory management occurs when you produce just enough material to satisfy customers’ needs without overextending the production line and manufacturing too many of any given product. You don’t want an incredible amount of backstock lying around, as this detracts from your net profit. On the other hand, you don’t want to be in short supply when a large order comes in, so having a little extra on hand is a great idea, and making sure you are prepared to make a production run for such orders is vital.

Quality Control

Never simply assume that everything manufactured will be flawless. An important consideration in production inventory management is to allow room for error. In other words, calculate a sufficient amount of product to assume that, even with flaws that get past quality control efforts, there is sufficient stock of the product required.

Cost Analysis

In many instances, even the best production inventory management strategies fail in the long run due to the cost of the production process being overlooked as a factor. It is important to maintain a cost effective production process, and this includes making sure that your inventory is not an overwhelming factor. This comes back to not overproducing any items that come off the assembly lines. Doing so is a waste of time and materials, costing you excess money to create. Obviously, conservation of the materials, time, and energy consumed in manufacturing unnecessary goods is essential to maintaining a cost effective production inventory management strategy.

Be proactive in keeping close watch on all occurrences in your production or manufacturing facility to make sure that there is no waste, and you are guaranteed to achieve a greater standard of success and profitability.

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You Can Be An Expert In The Inventory Management Process

The key to success in the inventory management process is no big secret; it merely takes some training and experience to learn the ropes. In order to become an expert, you have to strive to learn all the techniques and functions that will make control over your inventory successful. There are several ways in which you can increase your knowledge of the process.

Read

Whether you purchase books from a local bookstore or look up information on the inventory management process online, you’ll find that reading is necessary to learn the various tools and systems used to be successful at inventory management. There is an unlimited amount of advice and an enormous number of resources for you to consult, so don’t hesitate to start reading.

Observe

Before you get into inventory management, you will probably have worked in a particular warehousing location for awhile. Take advantage of the opportunity to observe the practices of your superiors, and make note of the inventory management process that you are given to follow in order to keep the supply chain linked together and smoothly controlled. Never take for granted any information that your supervisor is willing to share with you regarding his or her own inventory management process.

Attend

From time to time, you’ll find seminars given in your area regarding the inventory management process, including new tools that you can use and different techniques you can try to improve the current system. Be sure to attend these to learn about the latest software and tools, as well as to brush up on your knowledge and simply remind yourself of the proper tactics to employ to make sure your inventory management process is as efficient as possible.

Apply

Every time you learn something effective, apply it immediately in the best way possible. Hands-on experience is the best way to become an expert in the inventory management process.

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Taking Care With Telecom Inventory Management

In the field of technology, there are infinite numbers and types of products used, especially in telecom. Telecom inventory management is an extremely delicate and important aspect of making sure that customers receive what they need when they need it.

Because parts are so delicate and many are extremely similar, barcodes and product numbers are not only important but vital to telecom inventory management. For example, a telecom company could have two router switches that essentially perform the same function, cost the same, and have product codes that are only one or two numbers off. However, one may be for a different version of the system than the customer has, and shipping the wrong item could cause the breakdown of an entire telephone network, costing the company hundreds of thousands or even millions of dollars.

However, with careful consideration and the use of sophisticated software, telecom inventory management can be handled efficiently. Avoiding human error is the greatest necessity in proper implementation. If you enter the wrong product code or forget to add a digit to the end of a barcode, you could cause a number of errors. For this reason, most telecom inventory management systems are completely automated, using scanners and other electronic equipment to store codes and product information, including quantities and warehouse locations.

It is also important to be precise with telecom inventory management processes because the equipment generally used in the industry is worth thousands and millions of dollars, and losing or misplacing a single item is serious business.

Overall, telecom inventory management is one of the most difficult areas of inventory management in the business, not only because there are so many similar parts to keep track of but also because of the value and delicacy of each individual product. You should always maintain tight control over telecom equipment in your inventory to prevent disaster.

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Learn More About Warehouse Inventory Management

You’ve been working in warehouse inventory management for awhile, but you are still using all the tactics employed by the previous manager and aren’t sure that these techniques are the most effective solution for your particular industry or application. You want to learn more about warehouse inventory management but don’t know where to begin. There are plenty of sources to consult, if you just know where to look.

Training Courses

If you are truly concerned that your knowledge of warehouse inventory management is insufficient, you can attend training courses at technical colleges or even through continuing education at a university that will help you step through the processes of inventory management that make your job easier and your department more efficient. These are in depth courses that look into the core of inventory management and will run through the processes from beginning to end.

Seminars

If you feel that you are comfortable with the processes of warehouse inventory management but simply need to find more effective techniques to sail a smoother course along the way, you may want to attend inventory management seminars. At these one or two day training courses, the instructor assumes you are familiar with how inventory management is accomplished and simply provides you with additional information regarding the use of tools and techniques that will make you a better manager and increase revenues for your department.

Resources

You can also consult materials on the web and in books and other industrial publications that provide detailed information on simplifying your warehouse inventory management process. Various websites and publications can provide information on the latest innovations in inventory management software, and books have compiled years of experience and tips from a variety of sources that could give you a better idea of how to deal with your own process.

Management Services

If you think you’ve determined the best processes to implement into your warehouse inventory management system but have a mess on your hands or aren’t sure where to begin, you can hire an inventory management company to come in and reorganize your inventory, take a fresh count, and implement the processes you want to efficiently control your inventory. They will even help you set up a software system and train you on its functionality, providing the necessary tools and knowledge for you to maintain control.

Whichever process you decide on, you will ultimately succeed by gaining additional knowledge on the warehouse inventory management process. Knowledge is power, so the more you learn the more successful you’ll be.

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By the Dictionary: The Definition of Supply Chain Management

Supply chain management by definition involves the entire supply chain, from the supplier out to the manufacturer, followed by the use of the retailer and then the final customer. In order to be efficient in supply chain management, you must meet three primary goals involving levels of inventory, speed of the transaction, and efficiency in sales. We’ll look at how you can achieve success in each of these areas separately.

Reduction of Inventory

While it is necessary to keep a certain amount of product on hand to satisfy the needs of customers, both commercial and consumer, you need to maintain a balanced view of how much is too much. If you have a lot of extra bulk in your inventory, you run several risks. First of all, it cuts into your net worth, showing as excess stock that is not moving. Also, large quantities of stock mean that some of it could become outdated or even expire, if any of it is perishable. Keeping the minimum amount of stock necessary increases your bottom line and reduces waste. It also allows you to provide a greater number of products and respond more quickly, aiding in meeting the next goal of good supply chain management.

Speed of Transaction

In supply chain management, you must be concerned with response time to all customers within the chain. Keeping a smaller amount of inventory will allow you the ability to more carefully monitor the stock, providing you with the ability to more quickly search and find what is needed for a customer. This enables you to exchange data with each customer along the line in real time, getting them the answers they need immediately. Another way to assure that you can respond quickly to requests is to use an inventory management system that helps you keep a tight watch on the coming and going of items in your warehouse. You can quickly index the answers required straight from the system and guarantee that you are providing the customer with the proper feedback. Once you can get the information to the customer with ease, you should consider what they need in return, bringing us to the final goal of effective supply chain management.

Sales Efficiency

The best way to assure that you can make the most of every sale with each customer or client in your supply chain is to effectively meet the needs of these customers. After you provide them with quick, accurate information, listen to what they require and find a way to implement changes that make your speedy response and tightly controlled inventory more efficient for their needs. Perhaps there is a specific product they need to order in certain quantities on a regular basis; in this case, you can ease their concerns by setting up automatic shipments of such items.

Most importantly, in depth knowledge of your inventory and the needs of your customers will help you in implementing effective supply chain management. The key to success is catering to the needs of all sources along the way, including yourself.

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Familiarizing Yourself With Supply Chain Logistics

Whereas supply chain management is concerned with the effectiveness of supplying product to customers down the line from the original production, supply chain logistics starts much sooner in the process. In order to be effective in managing your supply chain, you may want to familiarize yourself with the aspects of supply chain logistics as well.

Logistics management involves the planning and implementation of a marketing scheme, as well as the flow and storage of goods throughout the entire supplier process. Sourcing and procurement are part of the logistics process, meaning that you must determine from where the inventory and supplies you intend to provide to others are going to come to you. The logistics management process also include the planning and scheduling of any orders, deliveries, shipping, and other transportation needs of the supplies along the chain. Let’s break it down from the beginning.

  • Source – Once a source of goods is determined, you must secure a relationship with this supplier. For your part, this usually means being set up as some sort of distributor or representative that will act as a go-between from the source to the next step in the supply chain.
  • Fleet – You will need to set up transportation needs for shipment of the goods that you intend to manage within your inventory. This could be provided from several directions. The source may have a means of shipment, your company may have an in-house transportation department, or you could outsource this work to a transportation or delivery company.
  • Warehousing – Once you have the goods, supply chain logistics management requires that you have somewhere to put it. This means having sufficient warehouse space and an organized inventory system into which items can be placed. An inventory management software system and proper labeling and bin placement are vital to controlling the flow of the supply chain.
  • Order Fulfillment – In order to complete this aspect of supply chain logistics, there are several requirements to keep in mind. You must have a strategy for taking orders, a process by which these orders are pulled and properly packaged for shipment, a plan for delivery, and a means of tracking the outgoing product so that you can replenish stock as necessary.
  • Coordination – All aspects of the supply chain logistics process must integrate seamlessly, meaning that you must carefully coordinate the processes to make the flow of supplies from one area to the next efficient and smooth. Without careful planning, it is quite easy for one aspect of the chain to fail and several customers to be disappointed.
  • Customer Service – This is probably the most important part of supply chain logistics, as it affects every step along the way. Regardless of the stage of the transaction or supply process, every customer that is dealt with wants to receive assistance in the fastest, most efficient way possible, with a willing and smiling individual helping them through their part of the transaction. No matter who you are working with, be certain to provide a pleasant front and always strive to achieve the goals of the customer.

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Finding Small Business Inventory Management Software

When you run a small business, inventory management software may seem like a costly, unnecessary tool that only causes you to spend a great deal of money. However, utilizing inventory management software can actually help you increase your profit margins by keeping better track of your product so that you don’t have any losses, as well as helping you to take note of your best selling items so that you can keep those in supply. At the same time, you need a small business inventory management software that you can afford. What options do you have?

Freeware


There are all kinds of software to help you manage your stock level, starting with the very basic and increasing the number of bells and whistles until the software will practically run your business for you. If you are looking for a cost effective solution, you could possibly start with a simple freeware option that you can download from an internet source. A database program will allow you to name fields into which the information on the products in your inventory is entered, after which you can index anything in your warehouse. Of course, these freeware programs typically won’t keep a running total for you, and you won’t be able to scan in barcodes, but you can enter in as many as you like and change quantities manually as materials come and go.

Purchasing Software


If you are willing to spend a little money, the database software packages that you can purchase from a computer supply store offer a broader range of options. Some will connect to scanners so that you can automatically scan in or out any materials. Others will allow you to run reports on the quantity of materials in your warehouse and can even rank the products according to most expensive, the highest level of stock, the best selling item, and more.

All of the inventory management database software packages you find will be adaptable, allowing you to start with a template and simply rename fields or even start from scratch and build an entire database on your own.

Even if you only have a few items to worry about in your small business, inventory management software can help you cut losses and increase profits. Depending upon your technological know-how and your desire to be thorough, you can pick how sophisticated you wish your software to be. One way or the other, it just makes sense to use a software package to keep track of your inventory.

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Book Inventory Management Made Simple

While it may still seem like a bit of a hassle, book inventory management is probably one of the simplest forms of inventory management that you’ll ever come across. This is because the data used to keep track of or index books is easily entered into a database, almost as though databases were created specifically for managing a stock of books. Let’s take a look at what makes book inventory management so quick and easy.

Predetermined Fields

In a database management system, you have fields that are titled with a specific type of data that will allow you to perform a search for that particular information. In many software packages, there will be templates that you can simply alter to build your customized database, and some of these are already set up for book inventory management. For example, it will contain fields for “title”, “author”, “subject”, and other aspects by which you would choose to index your books.

Searchable Information

Books are set up for quick and easy searchable information, including, as mentioned above, titles, author’s names, and more, including UPC barcodes, editions, copyright dates, and even descriptions. Some have illustrators, and others have editors or ghostwriters. You can create fields for searching subject matter, genre (romance, science fiction, etc), and even divide your inventory by fiction, nonfiction, biography, etc.

Tracking System

When you use a book inventory management system, you can easily keep track of the sales you make, as well as the orders you place. Even in libraries, book inventory management is simple, with everything simply being scanned in or out, with information on the borrower kept in the system and a due date field being automatically completed upon entry of the check out date in another field.

Shelving

Using a book inventory management system can also allow you to keep track of the shelving location of the books in your inventory. For example, if you have indexed a Judy Blume book, it can pull up fields that will tell you the names of all of her publications, as well as that they can be found under “young adult fiction” and even on which row you would expect to find books by authors with last names starting with “B”.

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Interacting With Inventory Management Services

Sometimes, we all need a little help getting our heads on straight, especially when it comes to learning the ropes in a new position or taking over a role that was not handled so well by the previous player. This is especially true in regards to inventory control, which is why there are inventory management services available to help you get your ducks in a row. What are inventory management services, and how can they help you when you take over a department or warehouse?

Inventory management services can be compared to property management companies in that they enter into the picture when you have little or no experience and need assistance in setting up a new system for control. This could be because there was no system implemented to begin with, because you are unsure where to begin, or because a former manager was unable to keep control of the inventory, leaving the entire warehouse is a state of disorganization.

In any of these cases, an inventory management service will come in, take an inventory of the entire stock in your warehouse, reorganize the storage of the items you have in stock so that everything is properly indexed, labeled, and securely stored in its own bin, and even set up an inventory management software tool for you and your employees to use to keep track of all stock.

Once everything is in order, some inventory management services will train you and your staff to use the software and will even provide you with tips and techniques to keep the inventory organized and properly managed. This means giving you information on how to guarantee that you don’t overextend your budget, order the proper items in the proper quantities, and generally understand the concept of turnover and stock rotation so that you can make sure your company or department is profitable. After all, money is the bottom line, and if you needed to call in an inventory management service, your business probably wasn’t profiting much.

While it may seem like an extreme measure, usually the money spent hiring and interacting with an inventory management company will pay off quickly and can help you save money and increase your income. These companies are trained to make your inventory management procedures as smooth and streamlined as possible so that you don’t have to hassle with any further rearrangements or make any further changes to your system.

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Simplifying Processes With Inventory Management Software

When you implement the use of an inventory management software system, you’ll find that your job becomes ten times easier. Software puts you in control in a way you’ve never experienced, allowing you to track and process all information electronically. Software takes away much of the human error that is involved in inventory management, and while it can’t correct all mistakes, it certainly does have its advantages.

Using inventory management software makes it possible to use complex barcoding to identify materials within your inventory that it would be impossible for a human mind to memorize, rather than counting on product packaging or labeling for your inventory control. This means that you can more easily index the correct location within a large warehouse of any item, pull orders or stock new product, and provide simple labeling for all of the goods you keep in stock.

You can use your inventory management software for ordering purposes as well. Most software systems have a means by which you can print out reports showing exact quantities of all items in stock and alerting managers to areas where replenishment of the stock is needed. This makes ordering a breeze by letting you sort items by quantity in stock (bringing up the lowest numbers first) and also helps you determine what products are not moving down the supply chain quickly so that you can back off on the amount of stock in these areas.

When it comes time to run an inventory check, you can quickly and simply verify correct quantities based on the levels of stock shown in the system versus the hand count. Inventory management software systems are incredibly important to the smooth sailing of any link in the supply chain, and it just makes a job that much easier when you have a good software based solution for your part of that chain.

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Purchasing The Right Inventory Management Solution Software

You can shop around for different database software solutions forever, but when you find the right inventory management solution software, don’t hesitate in your purchase. How do you know the exact needs of your business? Here are some considerations for you to take with you in your hunt for the perfect inventory management solution software.

  • How detailed should my database information be? Do I need just a few fields that I can alter from a template, or do I need to build my own database to hold tons of detailed information on thousands of items in my warehouse?
  • I want to be able to index the items in my inventory several different ways, and I want to be able to create printable reports that will tell me how much I’m making in sales, what my best product is, and how often I’m ordering certain products.
  • I don’t need a lot of detail; I own a small business, and I only have a few items I order. I simply want all the information available electronically to make ordering easy. I like simply tools, like spreadsheets, that I can search myself to find a part number and place an order.
  • I need the works – I want to be able to scan in and out each item that enters and leaves my warehouse, print out barcodes for the items on my shelves and in my bins, print detailed analysis reports, get detailed quantities to verify inventory checks, and on top of all of that I want to be able to automatically forward this information to someone else by email.

All of these solutions are possible, depending upon the amount of money you want to spend on inventory management solution software to accomplish your goal. You can swing by a computer supply store and speak to a clerk to find the software you need.


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Inventory Management Barcoding – Keeping Track Electronically

When you enter the thrilling world of inventory management, you’ll learn right off the bat that one of the most pressing problems in the business is keeping the different parts and pieces in your warehouse organized. It is vital to label your inventory properly to avoid such problems, and this is the idea behind inventory management barcoding.

Inventory Management Defined


Inventory management is literally defined seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. That means that, if the items in question are not properly labeled, it will be impossible to assure that the correct product is in the correct place, much less to be certain that it is ordered, shipped, and handled properly. Therefore, you must maintain a tightly controlled system of inventory management barcoding to assure that all items are correctly placed from the start.

Why Use Barcoding


Barcoding is a simple way to identify merchandise in inventory because it can be scanned, at which point the computer translates it into numerals and searches a database for the information on the item. You can then take the next step, which could be mere verification that the item is stored in the correct bin, pulling a quantity for an order, stocking an additional quantity into the bin, or placing an order to replace sold or shipped items.

Inventory management barcoding is efficient because it saves time in place of reading numbers or titles off a number of different products whose sales labels are all configured differently, placing the same information in various different areas. Using this primitive method, you could search for identification numbers for hours on end. With barcoding, the computer does all the work, and it is complete in mere seconds.

Without barcoding, inventory management would be a complete mess in many situations. However, if you make sure that all items are correctly and visibly labeled, it will be simple to keep track of your warehouse.

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Sunday, April 8, 2007

What Inventory Management Technique Will Tweak Your Revenue?

When you become involved in managing a department, one of the fringe responsibilities is inventory management. Part of the main concern in this area is how to produce the greatest revenue without overtaxing your budget by keeping too much stock. Employing a specific inventory management technique may assist you in increasing revenue without increasing expenditure at the same time.

Whatever type of inventory you have and however large your department or store, there is an inventory management technique that will work well for you. Perhaps you need a better labeling system. Are your part numbers or stock numbers too similar, so that they are easily confused and loaded into the wrong bins? If this is the case, perhaps some sort of color coding or additional barcoding will set things straight. Maybe you could impose the use of a particular type of inventory software that would print out the additional labeling material upon recognition to make identification easier.

Simplify the Ordering Process


If you find that you tend to order the wrong quantities of the wrong items frequently, perhaps a good inventory management technique would be to create a “short list” of the items that most often need to be ordered, as well as those that rarely need to be restocked. This would simplify the ordering process so that you could guarantee that you don’t overstock an item.

Spatial Planning


If you are having difficulty organizing your inventory to fit within the confines allowed for the items you need to keep in the warehouse or supply area, you may want to consider drafting out the space on paper and planning the layout of your inventory. Sometimes, this kind of visualization is the only way to achieve the spatial organization that is required for successful inventory management. Whatever seems to be the problem, there is an inventory management technique available to provide a simple solution that meets your needs.

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Using Inventory Management Tools To Help Your Employees

While you may be familiar with the inventory management process and may in fact have years of experience in this area, your employees may be new to the idea. In order to better serve you and maintain proper control of inventory, you may need to provide some inventory management tools to your staff to assist them in their efforts to help you keep your department running smoothly. The key to choosing the right tools is to take into account the type of inventory you stock, the quantities that you keep, and the level of experience on the part of your employees. What sorts of tools are available to you and your employees to ensure that they are able to manage your inventory?

Choosing the Right Tools


The inventory management tools that will best assist your employees in learning and adhering to the guidelines you set forth for inventory control depend much on the type of business you have. If you own a small, independent enterprise, you may only need some specified filing habits that maintain organized packing slips and invoices in order to keep track of the incoming and outgoing stock. In some cases, you may choose to utilize a small database that will decrease the amount of paperwork required and store all the information electronically. For a larger warehouse, especially if you are dealing with items that are all quite similar with the exception of a few digits in a serial number, it is vital to have some sort of database or software management system.

Training Your Employees


Once you have these inventory management tools in place, you need to make sure that your employees are trained in how to use them. Having a database full of information is useless unless your employees can use the software with confidence and ease. Your employees should be able to search, enter information, print reports, and reference ordering information from the software you have chosen for your management tool.

Other inventory management tools that you may use to get your employees up to speed and able to help you maintain a controlled environment are training courses and seminars. There are several how-to courses that can be purchased, as well as general training videos that you can show your employees as a sort of initiation video, and any time a seminar is offered, you should plan to send new employees so that they can learn the importance and overall value of running a tightly controlled department with careful inventory management.

Electronic Tools


Anything that can be computerized is a great help in simplifying processes. Barcodes and scanners are excellent inventory management tools to make the tracking and placing of orders quick and easy for anyone in the department. You can also easily identify that stock is placed in the correct storage area much more efficiently with proper labeling.

These are just a few inventory management tools that can help your employees learn the importance of being organized and being able to keep track of all products that should be in your inventory. With time, implementing the use of such tools will assist in bringing your employees up to speed.


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The Difficult Task Of Retail Inventory Management

Retail inventory management is probably one of the most complex of all inventory management departments. In retail management, you’ll have a greater variety of products to store and a great deal more of each product. In fact, your warehouse may never be big enough to hold all the merchandise that you need to keep in stock, and it can be difficult to maintain the right number of any particular item at any given time. How can you solve the problem, or at least address it, before it becomes too much to handle?

Retail inventory management should never be the job of a single individual but should be divided into departments and classified accordingly. For example, in a supermarket, you’ll have two major departments – grocery and non-grocery – and each will have several subcategories. Under grocery, you can expect such departments as meat, dairy, frozen, canned, and more.

Delegation of Responsibility


Depending on the size of your store, your retail inventory management could be divided into the two main categories and delegated to two individuals who would be responsible for the management of your entire inventory, or you could break it down further, having an employee in charge of each smaller division. This would allow the individual to gain an intimate knowledge of how quickly each product sold and how often it needed to be reordered. This would easily allow you to account for excess stock in some areas while others remained fairly empty.

The important thing to remember in retail inventory management is that you most likely have a little storage space for an enormous array of products and have to determine what will and won’t be important to maintain in quantity. Being efficient in carefully stocking the storage areas, as well as knowing what your best sellers are, can help you keep your retail inventory management process strong and in balance.


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Getting Familiar With An Inventory Management Software System

Once you’ve been put in charge of a large amount of inventory, you’ll need to get acquainted with the inventory management software system that is employed in your department or warehouse application. Using these systems is usually quite simple, depending on which type of software is chosen by the company to keep track of inventory. Most are also excellent inventory management tools, with a lot of options for customization that allow you to set up the system so that it is optimized for your particular industry and use.

The Database


Most of the inventory management software system packages today are based on a simple database setup. A database is a program into which you can enter information that will then be stored and indexed into several categories through which you can search for specific “keywords”. The categories are determined by fields, or areas named in a specific manner, into which a particular type of information is entered.

For example, if you were to build a database of books, you might create fields for the title, the author’s first name and last name, the year the book was written, the book genre, whether it was hardback or paperback, the edition, and even a brief description. Then, when you wanted to index a particular book by author’s last name, you would set that parameter and type in “Smith”, or whatever the last name was. The database would then pull up every book in your database written by an author with the last name Smith.

Using the Software


The same principle is employed when using an inventory management software system. In these applications, you typically have fields with the brand name, the type of stock, the UPC, the product type, and when applicable, an expiration date, color, and size or quantity. If you have bin numbers into which items are stored, it is appropriate to also have the bin number indexed into the database for search options. The more information you can enter into your inventory management software system, the more efficiently you can track and control your stock.

The software system will help you to track incoming and outgoing items, keeping a running total of the level of stock you have in your possession at any given time. This allows you to run reports, provide information for periodic inventory control checks to reaffirm that nothing is out of place or missing, and to order stock more efficiently by cluing you in to what needs replenishment and what items are hardly moving.

Why It's Important


The more familiar you are with your inventory management software system, the more likely you are to feel confident that your stock is completely in order. By being able to follow the information provided and to update this information without any questions or concerns will help you maintain a tightly run operation and to manage your inventory supply better. It is also vital so that you can pass this knowledge on to your staff without hesitation, allowing them to take a little weight off your shoulders by being able to help you keep track of your inventory.

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Employing Good Principles Of Inventory Management

In the business world, not everyone follows good principles that aid in their success. However, the principles of inventory management cannot be ignored if you expect to maintain a quality business with a good reputation for always being able to assist a customer. Employing good principles is the best way to profit in any industry because it keeps you afloat in a world of chaos and madness. Principles maintain organizational quality and responsibility to a project, aspects that are most important in inventory management.

Cleanliness and Organization


The principles of inventory management are simple and easy to follow, if you simply make it a point to do so. For example, one of the top priorities in inventory management is to maintain a clean, organized warehouse in which all items are properly stored and labeled. This is important for several reasons. First of all, cleanliness is important for you and your staff, as well as for any products you store. You don’t want the appearance of dust and dirt to have a client thinking that no one has purchased from you in years, and you certainly don’t want grime buildup to cause items to become damaged or ruined. Organized storage and labeling allows you to easily locate and order, pull, or stock any item in your warehouse without a long, difficult search.

Stock Rotation


If you employ good principles of inventory management, you’ll be certain to rotate your stock, selling through older stock before delving into new shipments. This will assure that you always have fresh product and don’t lose money by having to write off old items that were never sold or used. It also means that, again, none of your items appear as though they’ve been in the warehouse untouched for years because they won’t have time to build up dust and dirt to a significant degree.

Tracking


Keeping careful track of all of the items in your warehouse is one of the best principles of inventory management. How can you possibly sail smoothly and run an efficient department if you don’t know part numbers and quantities you have in stock or where they may be located in your warehouse?

Obviously, you can benefit greatly by employing just a few basic principle of inventory management in your workplace. The more you work towards running a tight ship, the better off you’ll be as a manager, and the more profitable your department or business will be.


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Being In Charge – Inventory Control Management

After several years of being a forklift driver or stocker, you’ve been promoted, and now you are in charge. What this means for you is more than a raise – it also means an incredible responsibility for inventory control management. Now, it’s your job to see that stock levels are maintained in a reasonable fashion and that all items are accounted for when inventory checks are made. It means that the organization of inventory for an entire department or warehouse is now your responsibility. What can you do to ease the burden of such a hefty load? Here are a few dos and don’ts to get you going.

  • DO employ individuals who are willing to accept a great deal of responsibility. You cannot be present at all times, and it is vital that you have a staff you can trust to follow proper stocking procedures and maintain operations honestly when you are not around.
  • DON’T depend completely on another individual. You are the manager, and inventory control management is solely your responsibility. While it is perfectly acceptable to delegate some of that responsibility to others in your employ, you should not place all the burden on the shoulders of another or even several others.
  • DO perform regular reconciliation checks of your inventory in between formal inventory checks to verify that no items are unaccounted for. This will also help to check for any errors in the placement of items within your warehouse space, as well as in the documenting of incoming and outgoing items.
  • DO regularly rotate the stock and teach your employees to do the same. Leaving older items tucked beneath new stock of the same product is poor inventory control management that results in the eventual loss of the older items due to expiration.
  • DON’T overextend the budget. Part of good inventory control management is ordering smartly. Never purchase too much of a single item, even one that sells quickly. Especially if the stock is of high cost to you, make sure you only keep on hand what is necessary for any period of time. This also holds true with perishable goods.
  • DO track the sales of items and determine what brings in the most profit for your department. These are the items that you’ll want to make sure you never to deplete in your inventory, always having enough on hand to meet the demand for the product. On the other hand, slow sellers should be maintained at bare minimum levels.
  • DO make sure everything is properly organized and labeled for easy location within the warehouse. The larger your warehouse, the more important this level of organization is to the success and smooth functioning of your department.
  • DON’T let employees get lazy; keep them motivated, and refresh their knowledge with brief training classes that provide an overview of the inventory policies in your department.
  • DO be regimental and habitual about following guidelines, and set a fine example for others in your adherence to these regulations. They are provided to make your job and the job of your employees easier to do.

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Finding Inventory Management Solutions To Meet Your Needs

There are many ways to handle inventory management, but when you come into a situation where poor management has led to a mess that you need to clean up, you need to find inventory management solutions that meet your needs fast. Depending upon the level of deterioration of control you find when you come into the picture, you may need to implement several changes to the current system.

Inventory management solutions range from hiring a clean-up crew that can come in and start everything over to attending a seminar that will give you tips and techniques to help you evolve the situation into a successful, smooth process. If you have a large budget, it may be to your advantage to hire an inventory management crew to come in and reorganize the warehouse, providing information on models and quantities, storing items properly, and perhaps even setting up software for future management. However, if the system has been inefficient for a long time, your company is probably struggling with finances and will not be willing to fund this kind of reorganization.

Doing It Yourself


That leaves the task of finding valuable but cost efficient inventory management solutions up to you. First, you will need intelligent, hard working employees who are willing to assist you in the implementation of a new strategy to manage the inventory and who can help you reorganize the current stock. This could take hours, days, or even weeks, depending on how large your department, warehouse, or supply house is. Still, it is the first step in solving the inventory problems.

Data Management


Once everything is properly sorted, counted, stored, and labeled, you should purchase some sort of inventory management software. Building a database could be the easiest way to keep track of items in your inventory, and this will help you manage your ordering process, inventory checks, and even stocking process, simplifying all aspects of managing your stock. One of the simplest inventory management solutions, a software system or database is a way to completely organize and catalogue everything that arrives and leaves your warehouse so that all items are accounted for at all times.

The cleanup after another manager leaves can be brutal, but there are many sources available to get your warehouse back in order. Take advantage of suggestions that other successful managers offer, and don’t be afraid to ask for help, especially since you are going to be held responsible for the outcome in the end.


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Keeping An Inventory Management Database For Easy Reference

If you are in charge of a small warehouse or storage space, you may not realize how important implementing an inventory management database can be. Keeping an inventory management database can help you be certain of models and quantities you have on hand. Supplies of books, CD’s, office supplies, and any other items can be tracked through a simple database without employing any complex or expensive software equipment and will assist you in knowing how much you’re keeping on your shelves.

Use of an inventory management database can range from simply monitoring the number of items on hand to determining cost of the items that you are keeping and profitability from sales.


Advantages

Databases also allow you to index materials based on various details for search options. For example, an inventory management database can be implemented in a bookstore to allow the owner to index the books carried by author, title, subject, and any other fields that are built into the database. For those looking for a way to keep track of sales, an inventory management database can be configured to keep track of the cost and sell price of an item so that, when it is purchased, the profit is logged.

Knowing the quantity of items on hand also allows you to reorder products when the stock is low. For example, if you have a small office supply store and you are down to the last three packages of your best-selling pens, you may overlook it unless you have an inventory management database to alert you of the low stock level.

While most large companies use some sort of software to keep track of inventory, many small businesses forego such important systems. Using an inventory management database to keep track of your items can be essential to the success of your small business.


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Choosing An Effective Inventory Management Strategy

If you plan to be successful as a manager of any department, warehouse, or supply chain, you’ll need to employ an effective inventory management strategy. The most successful retail, warehouse, and supply chain managers are those that are fully aware of the state of their stocked inventory at any time and have a regulated system that allows them to easily index and monitor the coming and going of product within that inventory.

What Are Your Needs?


Implementing an inventory management strategy begins with the specific items that you have and the type of storage location in which the product is kept. For example, your strategy may involve careful planning for spatial needs, especially if you must maintain a number of items in a minimal amount of space. An appropriate strategy at this point would be to create a diagram of your warehousing or storage environment and map out the locations of stocked items that will best organize the materials with no wasted space. This can be accomplished with electronic tools or simply by hand, but it is vital to the success of tracking and managing your inventory.

Maximize Profit


The next order of business when you are mapping out your strategy is to maximize your profit. Many times, the items in your inventory may sit for long periods of time due to lack of demand. This is not only a wasted expense; it also takes up valuable room in your warehouse or supply room that could be filled with a faster selling item which would draw more profit. Your inventory management strategy should definitely include some form of tracking system to identify quick selling products, as well as those with the highest profit margin. Such systems will report what items you should maintain at high levels within your inventory to meet demand and maximize your profit.

Software Systems


Your inventory management strategy would be incomplete without a software system that allows you to keep track of every item that comes in and out of your warehouse. This means that, when inventory checks are completed, you’ll be able to identify errors, thefts, losses, and any other discrepancies much more readily. It will also assist you in your ordering process, since the electronic tracking will give you information on exact quantities of inventory without you having to run out and count everything by hand. When you see that the stock of a particular item is low, you can prepare to reorder.

Labeling and Identification


One final implementation of an effective inventory management strategy is to make sure that all items are properly labeled. Incorrect or incomplete labeling can lead to several problems, including wrong identification by your software, misplacement when restocking the inventory, loss of the item, or inability to find it for shipment or shelving later.

Following these guidelines will help tremendously as you prepare your inventory management strategy and train your employees to adhere to the regulations you set forth. Best of all, set a good example yourself in sticking to the rules, and others will follow your lead without question.


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Saturday, April 7, 2007

Familiarizing Yourself With The Essentials Of Inventory Management

As a department manager of any type of supply market, whether books, food, or any other kind of stocked items, it is necessary to understand the essentials of inventory management so that you can maintain a healthy supply of stock while not overtaxing your budget or storage space. When managing your inventory levels, you must have enough quantity, as well as variety, in order to please the customer (whether your customer is in-house or a general consumer). However, you must also take into account several factors that concern your position as the department manager.

Concern for Space


For example, your storage or warehousing space will greatly effect decisions you make regarding the amount of products and supplies you keep on hand at any given time. If you have extra space in your warehouse, you should analyze what products are the “best sellers”, or the fastest moving items, so that you can wisely fill that space with these items. At the same time, you don’t want to overstock on expensive or slow-moving items.

Movement of Product


Always look at how well your inventory moves prior to ordering. This is essential in inventory management in order to keep items from getting old while stored. This is especially important if you work with any kind of perishables. In fact, in these instances, you should never store large amounts; simply make sure that your supply chain can replenish your stock with frequency, and check your stock daily for anything that is no longer usable.

Cost Efficiency


Finally, be aware of the costs of shipping and receiving, as well as the total net worth of the items you have in your inventory. It is essential to document all incoming and outgoing stock so that, in an inventory check, all information is accurate. Whether you are in charge of a very small division or an entire company, you’ll do well to understand the essentials of inventory management in order to profit rather than overextend the budget you’re given.

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Employing Inventory Management Techniques In The Workplace

When you choose to implement specific inventory techniques into the workplace, you’ll find that your job is much easier and that your entire department runs more smoothly. Here are a few simple but essential inventory management techniques that will assist you in keeping track of your inventory without a hassle.

Stock Rotation

Every good department head understands the importance of stock rotation. When new stock arrives, it is filed into the inventory kept in the warehouse behind any current stock of the item. This allows for older product to move out to the sales floor or to the ordering customer first. When you rotate stock, you keep any of your inventory from becoming outdated and useless. If anything expires or becomes outdated, it is no longer usable merchandise and must be written off as a loss. Therefore, stock rotation is one of the most important inventory techniques you can employ to achieve success.

Creating a System

When new inventory arrives, it cannot be placed in any open area of your warehouse. You must employ some sort of systematic stocking agenda so that all replenishment of stock is regulated. If a new item is to be shelved in the warehouse, room must be made for it in an area of similar items. This system must be made clear to all employees who handle the inventory in your department or supply house so that there are no errors resulting in lost or misplaced inventory. This sort of organization is obviously one of the more important inventory management techniques involved in keeping track of current stock.

Labeling

Of all the inventory management techniques you could employ in your workplace, labeling is probably the most important. Especially if you have a large warehouse of merchandise, it is absolutely essential that everything is clearly labeled so that all replenishment stock can be placed in the proper area with no hesitation or uncertainty, and also so that any outgoing merchandise can easily be located for shipping. On top of that, when an inventory check is completed, it will make the process of reconciliation that much simpler to handle.

Inventory Management Software

Using any kind of software that assists you in tracking your inventory can be helpful as well, making it simple to just scan in and out any moving merchandise on a daily basis. Using a database or other software can make the other inventory management techniques that much easier for you by cataloguing all the information for you, including quantity on hand, cost of the item, and location within your warehouse. It also gives a clearer picture of how quickly items are sold and allows inventory checks to be processed more quickly and efficiently.
As you can see, some of the inventory management techniques that are best suited to help you maintain your responsibility without a hassle are not all that difficult to employ. Especially if you have a good management software package, all the other techniques can easily fall into place. With a robust training program for employees and a drive to follow these pointers, managing your inventory will be a breeze.

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Employing Effective Inventory Management In Your Workplace

To employ effective inventory management in your workplace, you must start at the bottom and work your way up the ladder of techniques. The first thing to consider is how other employees who are involved in the stock and supply within the warehouse are currently handling the inventory for which you are now responsible.

Lack of knowledge on the part of employees is one major distraction when you are attempting to create effective inventory management systems within your department or supply house. There could be several problems to address in this circumstance. First of all, the prior manager may not have employed any kind of effective inventory management strategy, or perhaps if the individual did, there was simply no system passed on to the employees that was to be followed. Either way, you are in a position in which you must determine the next course of action. Most of the time, this will involve training the employees in effective inventory management techniques, including proper labeling and stocking of product, tracking system usage, and ordering strategies.

Identifying the Problem


Another problem may be that there is no current effective inventory management system in place. This leaves the responsibility to you to create such a system. You should start by identifying the existing problems with inventory management and addressing these. Is the stocking system organized, or is everything haphazardly thrown into the first open spot? Is stock being rotated, or is there old product sitting around wasting that is going to become a monetary issue when it has to be thrown out? Is everything labeled in a concise, legible manner so that all items can be located easily? All of these are aspects of effective inventory management that may not have been previously considered and should be worked into your new strategy.

Reorganizing


You may also need to go through the records of stock that has come and gone in recent months to determine if there are items in demand that are not being supported as necessary, as well as if there are things in the inventory that do not move well and could be eliminated or at least slowed in restocking efforts. Determining what products pull in the greatest revenue and have the greatest turnaround is a great way to employ effective inventory management strategies, allowing you to make room for “best sellers” while slowly removing items that don’t sell well.

When you have your cash cows determined, complete a system of stocking and product rotation that keeps items new and fresh, and train your employees to follow the system you’ve created, you’ll find effective inventory management simply becomes part of the daily grind and is no longer something you have to mull over every day. Your inventory checks will be concise and clear, with everything coming together appropriately, and your entire business will run more smoothly without snags. Using methods and techniques that have proven themselves in other businesses where inventory management is essential will make effective inventory management in your situation less of a problem.


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Why You Should Attend An Inventory Management Seminar

The decision to attend an inventory management seminar is simple, especially if you are newly assigned to a position that requires the knowledge of how to manage inventory. There is quite a bit of information that can be gained in one of these seminars that will assist you in heading up your own department and crew in detailed inventory management. Some of the things that you will learn in an inventory management seminar are:

  • Balance. While you always want to have plenty of inventory on hand to assure your customers that you will always have what they need in stock, you don’t want to overstock anything either. You’ll learn to find the right balance between supply and demand so that you don’t have inventory sitting in the warehouse not moving for long periods of time.
  • Rotation. You’ll learn how to rotate stock to make sure that the inventory you’ve had the longest is sold first. Never leave the older product in the back and move new product first. This leads to a need to write off a lot of materials and wastes money.
  • Budget. Regardless of the demand for a product, you should never overtax your budget to keep a hefty stock of it. You’ll learn to calculate exactly how quickly it moves out of your inventory so you know the specific amount you must keep to maintain enough stock without spending too much.
  • Space. You’ll learn how to properly utilize the space you have available for warehousing to set up the most efficient inventory stocking program for your department. You’ll also learn about properly tracking the inventory and marking it for easy reconciliation with inventory checks.

Overall, an inventory management seminar will cover the basic information that will lead to your ultimate success in managing your own levels of stock and keeping track of your inventory with ease.

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