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Nventory Management Is Immensely Complex

The document provides 20 solutions to common inventory management challenges, including centralized tracking of inventory using software for automatic reordering and procurement, measuring warehouse performance metrics for transparency, conducting frequent stock audits to reduce errors, using demand forecasting tools to predict trends, adding product images to improve accuracy, going paperless, implementing stock control systems, measuring supplier performance, optimizing storage space, automating reorders, maintaining safety stock, classifying inventory, leveraging multi-location features, accounting for lead times, reducing human error, planning for demand, outsourcing expertise, using dashboards for collaboration, utilizing mobile productivity tools, and updating platforms.

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Jeffrey Molefe
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28 views

Nventory Management Is Immensely Complex

The document provides 20 solutions to common inventory management challenges, including centralized tracking of inventory using software for automatic reordering and procurement, measuring warehouse performance metrics for transparency, conducting frequent stock audits to reduce errors, using demand forecasting tools to predict trends, adding product images to improve accuracy, going paperless, implementing stock control systems, measuring supplier performance, optimizing storage space, automating reorders, maintaining safety stock, classifying inventory, leveraging multi-location features, accounting for lead times, reducing human error, planning for demand, outsourcing expertise, using dashboards for collaboration, utilizing mobile productivity tools, and updating platforms.

Uploaded by

Jeffrey Molefe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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nventory management is immensely complex.

Here are some solutions to the common


inventory management challenges listed above.

1. Centralized Tracking:

Consider upgrading to tracking software that provides automated features for re-
ordering and procurement. Inventory management platforms provide centralized,
cloud-based databases for accurate, automatic inventory updates and real-time data
backup.

2. Transparent Performance:

Measure and report warehouse performance metrics like inventory turnover, customer
satisfaction and order processing speed to overcome warehouse inefficiencies. Share
this data with employees and suppliers. 

3. Stock Auditing:

Frequent stock auditing processes, like daily cycle counting, reduce human error and
provide more accurate, up-to-date inventory data for managing cash flow. Organize
audits by category and cycle count smaller inventory samples on a predictable
schedule for more accurate financial data.

4. Demand Forecasting:

Some inventory management platforms include demand forecasting tools. This feature
integrates with accounting and sales data to help you predict demand and schedule
orders based on shifting customer preferences, material availability or seasonal trends.

5. Add Imagery:

Add images with product descriptions in your inventory database to improve


purchasing and receiving processes, enhance accuracy and prevent misplaced
inventory.

6. Go Paperless:

Give employees the right inventory tools for the job. They need software to replace
manual inventory documentation, and paperless transactions for invoices and
purchase orders.

7. Preventive Control:

Implement stock control systems to manage problem inventory, such as perishable


stock, fragile equipment or obsolete materials. Perform regular preventive
maintenance on machinery and equipment stock in storage if required by the
manufacturer. Catalog data on problem stock location, cost and quantity to monitor
shelf life and prevent waste.
8. Measure Service Levels:

Monitor and track supplier data, such as shipment errors, damaged or defective
products and missed delivery appointments. Measure your supplier’s performance to
find and fix supply chain disruptions, reduce complexity and streamline logistics.

9. Optimize Space:

Use inventory management systems with warehouse management features to optimize


storage space and inventory flow. Categorize inventory storage down to shelf, bin and
compartment, and automate order picking, packing and shipping workflows.

10.Automate Reorders:

Backordered inventory delays production and creates poor customer experiences. Use
inventory management software to set automatic reorder points based on preset stock
levels and current availability to avoid overselling.

11.Safety Stock:

Maintain safety stock to offset supply chain disruptions and help manage increased
lead times due to shifting international competition for raw materials. Proper
inventory planning helps operations adapt to dynamic global supply chains.

12.Classify Inventory:

Create inventory classifications to manage changing trends, such as packaging


initiatives to reduce plastic waste. Categorize stock by packaging type, dimensions
and product. Use this information to control shipping costs and storage location better.

13.Multi-Location Warehousing:

Use multi-location warehouse management features to track and control expanding


inventories. Take advantage of receiving and put-away schedules with automated
inventory tracking alerts and scheduling features that keep tabs on warehouse location
and in-transit inventory.

14.Leverage Lead Times:

Take lead times into account when placing orders for high-demand stock. Track and
manage your high-demand inventory using cycle counting data to set automatic
reorder points and average lead time to preventing stockouts.

15.Reduce Human Error:

Use inventory control processes like blind receiving with barcodes and mobile
scanners to prevent human error, inventory manipulation and shrinkage due to theft or
negligence.
16.Plan Demand:

Use an inventory management system with advanced demand forecasting and


reporting features to prioritize your top inventory. Take into account the availability
of the top 20% of inventory that generates 80% of your customer demand. To learn
more about inventory planning and demand forecasting, read our essential guide to
inventory planning.  

17.Subcontract Expertise:

Consider outsourcing to an expert in inventory management. Contract in-person


training and provide online support to help employees follow best practices for
working with technical inventory management software features.

18.Dashboard Collaboration:

Introduce dashboards with simple interfaces that show real-time inventory data.
Having everything on one screen helps remove communication barriers across
accounting, sales and warehouse operations.

19.Productivity Tools:

All the information you need about your inventory can be in your pocket. With
mobile solutions and cloud-based software, you can control inventory and improve
your warehouse productivity from anywhere in the world.  

20.Update Platforms:

Upgrading to a cloud-based inventory management platform doesn’t just give all the
latest features. You get to take advantage of the vendor’s expertise and training while
it’s being implemented.

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