Inventory tracking is a critical part of the supply chain process, but every business owner understands it’s one of the most challenging things to get right. From knowing your inventory levels in real time to tracking shipments as they come in and go out to eliminate errors, there are several factors to consider.
Signs that your inventory tracking needs improvement
If you’re having trouble keeping track of your inventory, it might be time to reassess your system. There are a few key signs that indicate that your inventory tracking could use some improvement. If you’re experiencing any of these issues, it’s time to consider improving your inventory tracking.
1. Manual inventory tracking
If you are manually inputting inventory data, it’s a sign that your inventory tracking needs improvement. Likely, you are not tracking all the data you need, leading to lost or misplaced inventory, which can cost your business money. In addition to being error-prone and time-consuming, it isn’t easy to track inventory levels in real-time when relying on manual data entry. It is essential to have an inventory system that can automatically track inventory levels and update information in real time. It will help you avoid inventory issues and keep your business running smoothly.
2. Unoptimized inventory
If you find that you’re constantly running out of stock on certain items, it’s a sign that your inventory tracking needs improvement. The same applies to having more stock than you need. The most apparent reason for unoptimized inventory is that you’re not using proven forecasting techniques and relying on guesswork in the hope of getting it right. Accurately forecasting demand is one of the challenges most businesses face when preventing overstocking and understocking. While companies may employ different strategies to forecast demand, they all rely on a common thing – solid inventory control practices. If you find yourself constantly running out of stock, you must look closely at your inventory management system and make some changes. Otherwise, you’ll continue to lose sales and frustrate your customers.
3. Inaccurate inventory counts
You know inventory is vital if you own or manage a business. After all, inventory is what your business is selling! If you notice that your inventory tracking system is reporting counts that are far off from what you physically have in your warehouse, it’s a classic sign that you need to get better at tracking inventory. Getting your inventory counts right is critical to improving picking efficiency, understanding product movements, and making the right purchase decisions.
4. Order errors
If you’re noticing a lot of product returns due to picking errors, it’s a sign that your inventory tracking needs improvement. There are a few ways to reduce inventory errors, and the most effective one is using barcodes for inventory tracking. Given that human error is one of the leading causes of inventory mistakes, it would make sense to use barcode scanners for receipts and shipments. Barcode inventory systems can significantly reduce product returns due to inventory errors and make tracking what you have in stock easier.
Conclusion
Streamlining your inventory management process and implementing a more efficient inventory system like AccelGrid can save you time and money. Investing in a sound inventory tracking system is an investment that will pay off in the long run. If you’re unsure which method is best for your business, try experimenting with a few different ones to see what works best. And if you’re still having trouble, we have plenty of resources to help you get started.
