Five Basics for Inventory Management Success Without warehouses and inventory, a successful supply chain cannot exist. The warehouse must be efficient to be an equally successful part of the supply chain. This is where warehouse inventory management enters the picture. In addition, you run the risk of having the wrong quantity, a disconnected database, and incorrect product identification. If these barriers seem too familiar, we've compiled a list of five tips to help you improve your inventory management system and achieve your most successful supply chain management.
ABC Classification A warehouse can have thousands to thousands of parts, so you'll need a clear and simple classification system to stay organized. Some warehouses prefer the "ABC classification" method of selective inventory control. This means that parts of inventory are classified based on their financial value and documentation requirements. For example, item "A" has the highest value and needs to be handled with care, while the "C" item has the lowest value and requires only simple entries. Note that each product and its associated SKU will have a different supply and demand variability pattern, so not all SKUs can be tagged the same. The "ABC Classification" system can also be used to manage SKU variability. No matter which method is used, all inventory parts must be neatly arranged with clearly labeled choices. Consider developing an accurate syntax for part labeling.
Warehouse Management System (WMS) A warehouse is not complete without a user-friendly warehouse management system, just as no supply chain is complete without WMS. The most basic WMS includes built-in integration with flexible location systems, user-customized function parameters, and data collection tools. Warehouse Management System (WMS) will improve inventory accuracy and storage capacity while reducing cycle