Tips for improving your business’s inventory control

Now find out some tips on how to, improve inventory control of your business and overcome this situation once and for all!

Did you know that companies that use computerized systems to manage inventory can reduce inventory differences by up to 30%?

In fact, this not only saves time, but also reduces financial losses.

In this sense, having a efficient inventory management is crucial to the success of your business, especially in periods of growth and shifts to omnichannel models. We will show you some inventory management tips to improve your operation and ensure the inventory optimization.

Main Points

• The use of computerized systems is crucial to minimize errors and maintain accurate records.
• Recording all entries and exits, without exception, is essential for good efficient inventory management.
• Establishing structured and clear processes helps avoid discrepancies and optimizes inventory management.
• Maintaining a close relationship with suppliers makes it easier to obtain raw materials and avoid shortages.
• Periodic inspections from inventory help detect and correct errors before they become problems.
• Good stock separation and organization practices can reduce losses and increase operational efficiency.

Improve inventory control: Importance of efficient inventory control

First of all, good inventory control is crucial to avoid waste, improve inventory management and maintain inventory accuracy.

In this sense, these practices make the company more efficient and profitable.

Proper inventory control brings great benefits.

One study showed that companies that use good inventory control practices can cut costs by up to 20%. Additionally, 60% of the companies that went bankrupt said that lack of inventory control was a major problem.

“Efficient inventory management can determine whether a company will make a profit or a loss, highlighting the critical need for organized control.”

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With inventory management systems, companies can increase productivity by up to 30%.

This is because they make better use of the resources they have. A market study showed that 70% of the companies that use these systems are able to predict product demand well.

Investing in quality inventory makes for happier customers, with 85% of businesses seeing more repeat customers. Additionally, taking inventory regularly can reduce inventory losses by up to 15% of businesses.

In other words, this shows how waste prevention and good inventory management are essential.

Using the right sorting and coding system can improve inventory control by up to 25%. In some industries, such as perishable foods, waste reduction can reach more than 30% with good practices.

Benefits

Nearly 80% of companies that use inventory management software say it saves them a lot of time on manual activities.

Thus, it shows that inventory control is important not only for cutting costs, but also for improving the company's efficiency.

In short, having good inventory accuracy is essential to avoid waste and manage inventory well. This leads to strong financial health and long-term success for your business.

Improving inventory control: Using computerized systems

Here, it is worth highlighting that the use of inventory management systems computerized is becoming essential for companies that want to improve their efficiency.

For example, these systems reduce errors, automate processes and allow detailed inventory monitoring.

Inventory is a valuable asset for retail, food service, and manufacturing companies. Many entrepreneurs suffer losses due to poor product control. Adopting technology is crucial to avoid errors and losses.

THE automation in inventory is a great benefit of computerized systems.

In short, they allow for precise management of product inputs and outputs. This helps to monitor stock turnover and take inventory of materials.

Finally, integrated communication between purchasing and sales is essential for efficient management.

The use of inventory control software How WMS improves real-time inventory visibility. It optimizes intralogistics processes. Technology is a fundamental ally in avoiding errors and improving the company.

Establishing clear processes and procedures

To have effective inventory control, it is crucial to have operational procedures well defined.

In other words, this means creating processes that record all item movements correctly and help monitor inventory accurately.

In this sense, the process standardization is key to avoiding errors and reducing losses.

It is very important to train employees well to follow the processes. This ensures that inventory is controlled correctly. Good internal communication also helps to keep the team engaged and committed.

THE ABC curve is a useful technique for classifying items by value or sales volume. This helps to better manage inventory. Category A represents 20% of the items, but 80% of the total value. This makes it easier to create storage and control strategies.

With operational procedures clear, employee training suitable and process standardization, your business can improve inventory control. This helps reduce losses.

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Improving inventory control: The lean manufacturing methodology

Adopt the Lean Manufacturing methodology improves the production management and reduces inventories.

In short, this action allows you to use fewer materials and products. This simplifies management, cuts costs and reduces the space required.

For example, using lean manufacturing brings great improvements. Overall Equipment Effectiveness (OEE) has improved greatly. Combining it with Six Sigma has also improved Mean Time Between Failures (MTBF) and Mean Time to Repair (MTTR).

THE efficient production management through the Lean Manufacturing Improves setup time. This helps align production with market demand and reduces waste. With Six Sigma, processes become nearly perfect, increasing customer satisfaction and cutting costs.

Studies show that the Lean Manufacturing and Six Sigma improved the sigma of machines. The filler and case erector went up from 1.2 to 1.8 sigma, an increase of 33.33%, this makes the inventory minimization more effective, avoiding surpluses and improving planning.

Relationship with suppliers

Have a close and trusting relationship with suppliers is essential to manage stocks well.

In this way, partnerships help to purchase materials quickly and avoid stock shortages and keep production up to date.

A good one supplier management makes planning easier and reduces risks. This is very important when purchasing.

"One supplier management well structured can be the difference between the success and failure of a company.”

O Just In Time is great with good partnerships, avoiding waste. FIFO is good for products that are worth losing, keeping stocks always renewed. Open communication and collaboration are key to a supply chain strong.

The ABC Curve methodology divides items into three groups. Category A is 20% of the items, but represents 80% of the inventory value. This helps to focus on supplier management of important items.

It is crucial to evaluate the reputation of suppliers. Delivery and quality problems can be avoided with a good analysis. One study found that 84% of problems are due to poor delivery or quality. 67% of financial losses could be avoided with a more detailed assessment.

Investing in selecting and evaluating suppliers is important. This ensures efficient inventory control and less prone to failures.

Creating clear and effective product control sheets

Control sheets are essential for managing inventory efficiently. They help track products, record incoming and outgoing dates. This keeps information accurate and easy to access.

This avoids confusion and gives a clear overview of the stock. Thus, inventory management becomes easier.

A study by GS1 US shows that 63% of the time, US inventories are correct. This means that one third of the time, the information is wrong. Use control sheets standardized and updating them regularly can improve this.

Big companies like Apple and Toyota use rigorous methods to manage inventory. They use the Just-in-Time system. These methods are accompanied by control sheets detailed to track products.

Business management software is also very important. It automates processes, provides real-time data and prevents errors. This makes inventory management more effective and strategic.

See also: Communication channels: the best for staying in touch with your customers 

Improve inventory control: Regular inventory inspections

It is very important to do periodic inspections to keep the inventory control necessary.

For example, this helps to avoid unnecessary losses.

This way, inspections find problems early and correct errors, making inventory control more accurate.

Therefore, set a frequency for the stock checks, such as weekly, biweekly or monthly. This helps you quickly find out if something is wrong.

This way, you keep your inventory organized and accurate.

In fact, well-performed inspections improve the use of resources and prevent product expiration.

They also help to follow health regulations and avoid cross-contamination, which is very important in the food sector.

Using clear labels with product information such as name, expiration date and batch number makes it much easier to stock check. It is also important to clean and organize your inventory regularly. This removes expired items and keeps the area clean.

In short, do periodic inspections of stock is essential for a inventory control accurate. This makes your operation more efficient and reduces waste. Create an inspection plan to take full advantage of the benefits.

Improve inventory control: Loss reduction program

Here, having a program to reduce losses is crucial to the success of any business.

Also, monitoring product expiration dates is an effective strategy.

This also helps prevent items from expiring, avoiding waste and maintaining product quality for customers.

In this way, inventory losses can come from failures in internal and external security.

Theft, both internal and external, is a big problem.

To combat this, it is important to adopt security measures, such as access control and video monitoring. Training employees is also essential so that they know how to handle the products correctly.

Performing rotating inventories is essential to identify products that are close to expiring. This helps to maintain accurate stock levels and avoid surprises. With a good inventory management program and waste prevention, the company improves its operations, increases customer satisfaction and its financial health.

Written by Redação Contas Digitales

I am a member of the Contas Digitais team and I produce content about finance, digital accounts, credit, and financial education. My goal is to share simple and useful information to help readers better understand the financial world and make more informed decisions in their daily lives.

Updated on July 23, 2024