When you have inventory problems, it will impact your bottom line. And a company who loses profits can easily go bankrupt if they can’t find a solution to turn their situation around. You need to steer clear of common inventory problems like the 5 examples below in order to gain control and get your business back on track.
Most common inventory problems can be avoided by setting standards. Without warehouse standards, you have no way to measure your inventory turns, warehouse efficiency, or other important performance-related items. You need to set professional and achievable standards for how your warehouse runs and most importantly, your inventory.
If you aren’t already doing so, you need to be tracking your inventory. This includes your fill rates, inventory turns, when orders come in, and if they are exactly what you ordered. If you aren’t tracking them, how will you know what your problems are and how to fix them? It’s time to get your managers to start tracking your inventory and trying to improve the rates.
Get Inventory Management Software
The best way to get your inventory under control is to utilize an inventory management software system. No more excel sheets that don’t provide reports or real-time data. You need a software system that is more automated, providing real-time data on your stock, what you need to order and when, and what’s in demand and being left on the shelves. This can help you get your warehouse functioning optimally and your business flourishing.
Properly Train Your Staff
If your staff doesn’t understand how to use the inventory software or to track the processes, you have no one to blame but yourself. Ask the vendors of the software you use to come in and conduct on-site training. When you take the time to train your staff properly, you will have a whole team to implement better inventory-control systems and best practices.
Hire An Inventory Manager
When your company’s inventory is directly correlated to your profit margin, you need a professional to lead it, not a junior employee. Hire an experienced inventory manager who is both trustworthy and accountable – someone who has years of experience and a track record of success in the warehouse.
When you’re having inventory problems that are impacting your business, you need to get an Inventory Management System from Optimum Control. It will take your business to the next level and get your inventory under control right away.