Although there have been tremendous technological advances in facilitating procedures in recent years, many manufacturers and distributors still do not have proper inventory and warehouse management.

This is mainly due to the lack of processes suitable for each business requirement, as well as the correct handling of inventory storage systems and information and documents.

In this article, I will tell you how to carry out efficient warehouse management based on specialized skills and tools to improve your business profitability.

Warehouse management is the key process performance of any enterprise or distribution center, namely receiving, organizing, storing and moving its elements.

This activity is also part of the logistics function process, that is, having an appropriate amount of commodity inventory or so-called inventory management, which is an important factor for the success of the organization.

Today, the company does not hesitate to equip its employees with a warehouse management system (WMS) to simplify the control of these procedures in an automated way.

The goal of warehouse management is to provide the best service without increasing storage costs, thanks to:

Most supply and out-of-stock issues stem from inadequate control measures or lack of appropriate processes to report on the frequency of movements and sales in the warehouse in real time.

Let us understand in detail the processes that warehouse management considers in the production chain.

Reception is the process that begins after you have consolidated the relationship with the supplier and expect the goods to arrive and enter your store. This considers a series of processes, such as:

Here, you can foresee the logistics that will be required during the delivery of goods, mainly related to departure and transportation:

This is the final stage when the goods finally leave your warehouse and are sent to different distribution points. Consider activities such as:

A key parameter of a well-conceived and structured warehouse is to have a clear, easy-to-read floor plan in an easily accessible and clearly marked area.

The label should also be easy to read and large enough. The color of the letters and the presence of barcodes are important elements.

Make sure your warehouse is organized in a systematic and strategic way. This makes it easy to identify items for order picking, receiving and storage.

In addition, identify out-of-stock areas, such as empty shelves, for later use.

The naming convention used to identify the items on the label is also important.

The unique identification of the project is the most important here. However, in addition to being unique, you must also consider its length and clarity. The project name should be short and clear, usually using numbers and letters to individually identify each product/material.

Things to consider when introducing naming conventions include:

For efficient inventory operations and accurate data recording, it is very important to define all processes and procedures in the warehouse. How can this be done? Adopt a policy:

Although most companies have established processes to better manage inventory, this does not eliminate the need (and benefits) of life cycle counting.

This inventory counting method is different from the traditional counting method, that is, the operation is suspended and all materials in the warehouse are counted at the same time.

Cycle counting is less disruptive to daily operations and provides continuous assessment of inventory accuracy and the root cause of detected errors.

Tools such as Be One Solutions allow you to categorize inventory based on transaction volume and/or value. In addition, a regular, regular count of the number of available items can be entered to maintain inventory accuracy.

A simple safety measure for good inventory management is to use a license generation system for operation. Such a system should ensure that only responsible employees have access to inventory and its information.

Now, you don’t need to work harder on the standardization of this process, because there are applications such as Kizeo Forms that can help you digitize and optimize your inventory. The solution simplifies the creation of checklists, so employees can fill out forms through a mobile app, and supervisors receive a copy of the report.

Knowing exactly who has access makes it easier to manage the system, reduce errors, and implement changes when necessary.

Ideally, this should be decided as early as possible when establishing an inventory management system. Controlling who has access to the inventory and the management system is still a constant asset, so establishing annual or semi-annual controls is very useful for updating the list of people who have access to the inventory.

Tracking inventory with pencil and paper or simple spreadsheets may not ensure optimal management of the warehouse.

Choosing an EMS for your warehouse depends on your company's needs. In addition to Kizeo Forms and warehouse management systems, there are many other tools that can help you automate and improve warehouse management.

The importance of optimizing inventory management

Some organizations do not accurately measure their inventory, or do not have warehouse management software (WMS) to help them coordinate and obtain true measurements of their processes.

However, every organization should be aware of the many advantages of having proper warehouse management, such as:

Having optimized warehouse management can translate into significant time savings and substantial cost reductions. For this reason, it is interesting to implement a warehouse management system (WMS).

The data that this type of system will generate is the best and has high value for the company.

The usefulness of implementing EMS then becomes a process optimization measure for interventions at different levels:

Don't wait any longer to ensure that your warehouse is functioning properly and increase sales. When it comes to improving your management, don't hesitate to rely on these tips and tools.

  This article was written by Peter Navarro for the Business 2 Community. Learn how to publish your content on B2C

Peter Navarro is responsible for employer branding at Sixt SE. When he is not in the office, he will find solace in writing and reading... View Full Profile ›

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