Improving Inventory Management

It is no secret that a detailed inventory management process will result in many positives, including increased working capital, stock market valuations, and peace of mind. Those are topics for another day.

But what are characteristics of a good inventory management operation? Material Handling & Logistics’ recent blog post Top 5 Solutions to Common Inventory Management Mistakes (written by Dusty Miller of Fishbowl) offers some good insight:

Key points:

  1. Use reorder points on inventory items to keep purchasing streamlined and inventory manageable.
  2. Spend money on specialized training for mission-critical software.
  3. Rearrange the warehouse to set up for picking efficiencies.
  4. Take time to get to know your technology so that you can use all the functionality.
  5. Stop doing yearly physical inventories and move to a more regular, smaller cycle counting and reconciling routine.

An important takeaway from the article, at least from G&D’s perspective is how Miller and Fishbowl, as outside consultants, are able to so accurately pinpoint opportunities for improvement. As Miller put it, “Sometimes trainers see mistakes that are so obvious you would think they’d be corrected immediately, but warehouse managers may be too distracted to notice them.”

The truth is, an outside perspective almost always brings a fresh perspective. That perspective, along with the benefits of leveraging specialists to do what they do best and then focusing on your core area of expertise, is what makes outsourcing so valuable.

Read the full article