Warehousing is simple, right? You take in inventory, store it until someone wants something, then go and get it for them. What could possibly go wrong?
Well, plenty! If you’ve ever placed an online grocery order you’ll have an insight into the potential pitfalls. From things you want that aren’t available – either at all or in the quantity you want – to finding what’s delivered doesn’t quite match up to what was ordered, it can be a frustrating business.
And if those things that aren’t available or are wrongly delivered apply to component parts needed to keep a production line running, the issue and the knock-on effects are much more serious.
We’re going to take a look at four key issues affecting effective inventory management.
Poor record keeping
Effective inventory management relies on accurate record-keeping. If you have a good idea of what goes out of the warehouse, you also have a good idea of what needs to come in to maintain availability. That whole process is underpinned by accurate record-keeping. Errors can lead to stock outages, overstocking and, potentially, financial loss.
Stock management software can help solve the problem.
Duplication of work
You’d be surprised how many things are done unnecessarily, often because ‘we’ve always done it like that’! That can lead to duplication of work, whether that’s double-handling (or more) of inventory, or multiple records kept.
A review of workflow processes can help eliminate excessive handling. When it comes to record-keeping, a single centralised system accessible by all relevant parties is the better option.
Poorly planned retrieval of inventory
With inventory selection and retrieval the aim is to avoid duplication of effort. In basic terms, if a worker needs to retrieve stocks of three components and two are in area A and one in area B, it makes sense to get the two products from area A at the same time.
Another consideration is health and safety. When goods are being retrieved from storage there’s always the risk of accident. Well-organised storage systems and procedures help address that. Automated storage systems are especially useful.
Lack of planning regarding use of space
When the capacity for storage is fully utilised, what do you do?
When the pressure’s on it’s tempting just to look for somewhere that has a bit of free space and decide to stick a shelving rack or automated storage system in there to get the job done. However, you could be spending money unnecessarily and/or creating a problem by positioning storage in a less than ideal spot.
A review of workflow processes will help with intelligent use of space. An inventory review might result in the identification of parts no longer needed that can be sold to generate revenue, and the space freed up might solve your storage problem. Stock management software can avoid overstocking issues.
Is there an overall solution?
Automated storage can help to address a lot of the issues and frustrations involved in managing inventory effectively. Goods are stored safely and securely, minimising the chances of damage or pilferage. Stock management software helps with maintaining optimum levels of stock, saving space and money. Ergonomic presentation of goods helps address health and safety issues.
If you want to know more about automated storage systems, get in touch. Whatever the situation, we can offer expert information and advice to help you make the right choice for your business.