Automating inventory in your stockroom is another top method of improving logistics. There is a bit of a human touch here, however. Since you’re dealing with physical spaces, it’s important to know what’s actually contained in them. That’s only part of the battle. Unless your company owns a lot of warehouses and real estate (or has some kind of box that’s bigger on the inside), the odds are managing your stockroom is going to be slightly more complicated. That’s why defining clear goals for your team will help them understand why managing the stockroom is so critical. Layout and define goals/metrics, then have your team and software implement them for you. In the actual warehouse itself, communicate. On the non-management side of things, make sure your warehouse workers are keeping things organized, using proper safety procedures when moving inventory, and keeping up with OSHA compliance. Using your inventory management system in tandem with some of these methods will ensure success in the long run.
Improved Visibility
Another key performance area to watch out for is visibility. The most significant way it does this is by monitoring orders, analyzing trends, and helping you make decisions fast. Keeping tabs on your inventory limits overbuying situations and keeps your stock from getting out of control. This has the side effect of reducing storage costs and limiting any possible re-purchases. Waste is also less of a concern because you’re keeping a close watch on what’s in your warehouse, where it’s going, and whether it’s needed or not. More consistency improves efficiency, gets orders to customers on time, and eventually enhances your relationships with them. It’s remarkable just how positive having a little bit of visibility into your inventory management process and strategies can be. If you employ the just-in-time inventory strategy, better visibility means you can order and receive materials quickly, with real-time tracking. Visibility also has the benefit of showing you what’s happening at point-of-sale, in shipping, and throughout the procurement cycle. Seeing and understanding your inventory in real-time helps you ensure you’re operating with the optimal levels of stock and sets you up to make better decisions in the future.
