Inventory Management: Tips

Keeping track of their supplies

It really does not matter what line of business you are in; from a steel mill to a ghetto workshop, a law firm to libraries or schools for that matter everyone needs to have a good track of things that they need on a “as and when required basis.” As I just said, law firms, libraries and schools do not print text materials nor do they print note books and other relevant stationery, but they need to ensure that an adequate amount of the items that really matter, things that are prime to their operations are on hand at all times. This goes without saying that it does not mean that they have to be overly prepared by holding excess amounts of inventory all the time. They need to develop a system for keeping track of their supplies; check on the history and observe the consumption trends and perhaps there on build from there on.

Here are a few tips on how you can better manage your inventory


1. Consolidate

If you don’t already have one, create a centralized storeroom, when you have your inventory scattered all over your facility creates confusion; consolidating into one location creates clarity and reduces cost and downtime.

2. Catalog

Once they are all together in one place, create a list of all items identify them your Unique Product Identifiers (UPI). Your UPI may also be something on the lines of your SKUs.

3. Count

You should have a full count of all the items physically lying in the central location. If a specific product comes in different dimensions it should be counted separately and be allocated a UPI. Aggregating them to quote or sell is another thing but when they are in your warehouse they are different “people” within themselves and have to be treated accordingly, with care and respect.

4. Calculate

Go through your records and see what materials do you require frequently and how much of it do you really ever require, if they are fast moving items perhaps you would have some inventory lying in the warehouse all the time but then this also comes from certain calculations so as to ascertain how much do you really need in the first place and it is also possible that some items although fast moving may be too big to have in the warehouse all the time, those are then to be procured on a “as and when basis".

Inventory management is about intelligently reducing costs without any serious compromises on product quality and in all of this striking a balance between reducing costs and arriving at the optimum level of inventory levels required.

5. Computerize


Have a good application in place where in it gives you the facility to create bar codes and keep a track of what item occupies which shelf in which warehouse, the more specific the better.


6. Continuity

Having bought a machine and the computer wizards come in, install the application, print bar codes, sticking them on the inventory and after a few weeks its all back to square one, does not really do the trick. Continued use, updating at every transaction is ideal but then the sooner the records are updated the effective the control the business has on its inventory. There is no management if there is no control to begin with.

This closes the series on Inventory Management. If ever there is something relevant I would be writing about it again so but for now, its too much (of inventory).