The Importance Of An Accurate Warehouse
A business operating a warehouse should make inventory management a priority. Without one, products can get shuffled around and your inventory records could be inaccurate. As a result, you may end up having too much inventory, or not enough. You may begin to overstock on items that are not big sellers, which could lead to overcrowded shelf space where you cannot order anything more.
Missed sales, disruptions to the manufacturing process, and harm to your reputation are all problems that can happen with little inventory. For example, inventory records could show an item is available and sales reps will continue to accept orders. On the warehouse floor, however, materials may be out. In these cases, customers will receive a delay, in turn, either cancel the order which would miss a sale or could hurt your reputation with the customer.
Why Is Inventory Management Vital?
Inventory management is used to provide more information and clarity throughout the supply chain process. It allows businesses to create data throughout every step of the process, such as during delivery. Inventory management systems can collect real-time data to improve accuracy throughout the fulfillment process. When your accuracy has improved the chance for inventory to become lost or damaged is greatly reduced. Warehouse operations can save up to 40% in transportation costs.
That being said, if something is wrong in the warehouse an inventory management system can provide greater accountability. By minimizing inventory issues, you can enhance the customer service experience and create loyal customers. Your organization’s steps to achieve an accurate inventory will depend on your goals. If you have inaccurate inventory data, you may want to consider adding real-time tools to your logistics process. For example, you could better understand seasonality, improve the layout of the warehouse for quick fulfillment, or invest in inventory management software that provides forecasting reports and transaction history.
For even more strategies on inventory management, check out our accompanying resource.