Sommario
- 1 Hardware and software for inventory management? Here’s why they are useful
- 2 Hardware and Software for Inventory Management: that’s what it’s all about
- 3 Warehouse inventory: but what is it?
- 4 Types of business inventory: here are which ones
- 5 Taking inventory: here’s how
- 6 Inventory: paper, Excel or WMS?
- 7 Inventories with WMS: the advantages
- 8 Inventory with products equipped with barcodes
- 9 Inventory: here’s why it’s important to get it right
Hardware and software for inventory management? Here’s why they are useful
When it comes to performing proper inventory management, numerous problems, various dilemmas and as many difficulties always arise. You may or may not like it, but it is one of those tasks that is by no means easy.
It is not enough simply to have good experience or in-depth knowledge of the field: it is also necessary to have the right tools that can facilitate the whole task.
Such accessories are not optional, but essential. Within a company they should not be an optional extra, but standard. It is no coincidence that the world’s largest companies, as well as those with the most success, rely heavily on precisely what goes into their choice of Hardware and Software for inventory management. In fact, these tools can detect errors, keep track of orders, manage inventories, and perform numerous other actions. The important thing is to learn how to use them well; once you can, the whole task of business inventory management becomes easier to accomplish.
Hardware and Software for Inventory Management: that’s what it’s all about
These are systems created specifically to help in monitoring inventory and all actions related to it.
They should not be thought of as automatic systems that do the work instead of staff; rather, they should still be used in the right way to achieve the desired benefits. Such programs are able to conduct complete tracking regarding what inventory levels, deliveries, sales, earnings, orders, by whom management has been carried out, and much more.
Implementing such a technology infrastructure in one’s corporate facility is not as difficult as it might initially seem. Far from it: doing so is easy, partly because of the constant evolution of the programs themselves.
These are accessories that can be adapted very well to any type of business, ranging from smaller ones to companies with a particularly large workforce. Added to this is another factor that must be considered: cost. Such products are not overpriced and at the same time can be regarded as an investment with a virtually guaranteed ROI.
In fact, thanks to the use of these tools, it will be possible to avoid the classic errors resulting from classic and anachronistic inventory management in warehouses, while still verifying the presence of stocks, their locations, understanding various extra information and so on.
These products provide stakeholders with a complete overview related to warehouse management. Without these tools, this essential procedure could be carried out poorly, which would certainly negatively affect the company’s budget and could even lead to a decrease in turnover. Not only that, such information systems help to plan procurement in a way that avoids waste or the various mistakes that are traditionally made at this stage. A very similar discussion applies to the subsequent distribution of goods located in the warehouse.
Warehouse inventory: but what is it?
It is a list provided with all the details of the various items that a company keeps in its warehouse. These items are grouped in inventories based on homogeneous categories. Then they must be classified and evaluated based on their characteristics.
The value of these products is subsequently recorded in the company’s balance sheet and represents a cost that goes into the profitability of the company itself. For this very reason, an error in this budget item could lead to a range of problems that are not insignificant, forcing the company to have to find a remedy in some way. Better to prevent this from happening, right?
Software helps not only to take inventory, but even to verify inventory levels and determine that the characteristics of the remaining products match the various data entered into the company’s internal information systems. It is, therefore, what can for all intents and purposes be regarded as an all-around job. Other actions performed by this type of system include:
– The identification of goods that have expired or those that are in a deteriorating stage;
– The control of obsolete stocks;
– The analysis of goods occupying space in the warehouse generating unnecessary storage expenses that could be allocated in other ways;
– The search for inventory inconsistencies, mainly due to operator errors or errors in other computer systems;
– Help in storing and cataloging goods, which makes it possible not to lose it through theft, mistakes, loss or other causes.
Types of business inventory: here are which ones
Currently there are several categories of business inventories to consider. Mainly one must remember inventory types such as:
Annual
The latter is carried out only once a year when the budget is closed, which in Italy happens in the first days of January. Such inventories are common for those firms that do not have large quantities of stored goods.
Of course, the annual inventory includes many disadvantages. One of these is the identification of inconsistencies in the inventory, as long as the inventory analysis is carried out only once within a year. Computer systems help a great deal here, as they allow inventory to be taken in a much more frequent way. This, in the long run, results in the ability to detect errors and limit unnecessary spending.
In rotation
This type of inventory is done periodically (weekly, monthly, quarterly, and so on) depending on what the specific needs of the enterprise are. In general, this type of inventory is done during periods of low activity for the purpose of cataloging all the products that are stored in the warehouse itself.
Permanent
Among the various types of inventory, one cannot forget about the permanent inventory, which is perhaps also the most important category. The latter is done frequently, and it is in this type that computer software for storage analysis is widely used.
Such systems can analyze the movement of goods without too much difficulty without any need to interrupt the activity itself. Thanks to accessories of this kind, it becomes possible to intervene in a particularly targeted way in order to understand whether there are any errors in storage and how to solve them.
The use of such information systems also helps to simplify considerably all the work done by the purchasing department. Not only that, software used for this purpose can be set up to automatically check outgoing or incoming goods by providing the WMS (Warehouse Management System) with data useful for carrying out inventory updating.
Taking inventory: here’s how
When getting ready to take inventory, it is always best to carry out all the steps in such a way that nothing goes wrong. This will make it possible to avoid mistakes and complete the work.
Prominent among the steps to be taken to take inventory without making mistakes are the following:
1) Determining the methodology, on which the analysis of the stocks being stored also depends. As you can well guess, you try to figure out which stocks will be cataloged in the inventory and how they will be grouped (by volume, by units, by economic value, or by weight).
When these parameters are established, one can move on to the next step: the ABC analysis so as to rank stocks in relation to turnover.
2) At this point, training of operators can proceed. Company employees, in fact, need to know how to work in the right way. They should be given the tools with which to take inventory. In case computer systems are used, it would be appropriate to explain to employees how to use them, what to do and what not to do in such a way as to avoid any mistakes.
3) It is also advisable to take advantage of low activity times, as these are the best times to take inventory. There is not too much pressure on employees, and the actions performed are not limited only to the operational phases of the warehouse. The world’s leading professionals who conduct such activities recommend taking inventory at precisely these times so that more factors can be kept in check.
4) There is another step to comply with: notice to suppliers. Taking inventory, in fact, can cripple both the exit and entry of goods. That is why it is necessary to notify suppliers so that they can adjust to the implementation of the inventory and not send new goods just as the stored ones are being cataloged.
5) Finally, one should not forget about everything related to the control of documents and tools used in inventory management. In particular, useful documentation should be prepared in advance to avoid the problems that often arise at the last minute forcing the work team to scramble for cover. This also applies to the devices used, which must be prepared and checked so that they work well so as not to create problems.
Inventory: paper, Excel or WMS?
Depending on the needs of the company, various media can be chosen for inventory compilation. A first choice must be made regarding the type: is it better to have a digital catalog or a paper catalog? In recent times people prefer to do it digital because of the various advantages offered. Next, a choice must be made about the type of digital inventory: rely on Excel or management software (WMS)?
However, it must be said that paper inventories are the easiest to make. They are done in a rather quick way, and the execution of the work does not cost much, although it takes longer.
Conversely, the implementation of the supports of this kind risks exposing the company to a wide range of problems. For example, using paper inventories increases the probability of any human errors.
The possibility of human error happening is minimized in the case of using digital inventory. For example, using Excel spreadsheets will make it possible to take advantage of some automation.
In this case, one can even use various extensions that can receive data from bar code scanners-thus the whole data entry process is accelerated. Using Excel spreadsheets is one can take advantage of greater accuracy than paper inventories, but in the long run, sufficient accuracy is not guaranteed in the control of inventories in the warehouse.
WMS software, which is useful for inventory management, allows for both product location control and inventory data. Not surprisingly, such programs are widely used by precisely those companies that need quality, accuracy and speed of use.
Inventories with WMS: the advantages
Thanks to these programs, it is possible to take inventory without making mistakes of any kind. The approach of software of this type focuses on accuracy. Companies that handle a large number of products cannot do without it, as there are so many inventory calculations.
Advanced systems of this kind perform various complex actions instead of a human being, and it is also for this reason that even today various firms, especially small and medium-sized ones, prefer to rely on paper or Excel, with all the problems that could result.
According to estimates, however, this scenario is expected to change soon, partly because of the greater functionality that WMS systems offer compared to paper or Excel. The industry related to the storage of goods in warehouses is already changing rapidly. More and more enterprises are relying on software designed specifically for inventory management.
Inventory with products equipped with barcodes
Each inventory is conditioned by the goods identification system. Such systems vary widely ranging from the common bar code scanner to RFID tags.
Nowadays, barcodes remain the most widely used product identification system in the world: it is inexpensive, efficient and universal. This code is read by a special recognition device, and the transfer of information occurs in an almost instantaneous manner. Data is transmitted to the WMS software using radio waves, and it becomes possible to check the presence of goods in the warehouse directly from the terminal.
Alternatively, there are inventories with RFID (Radio Frequency IDentification) tags, which are characterized by faster operations. The basis of this technology is radio waves, which are useful for transmitting information about an item.
Each product includes a label that can store this data, which can be changed later. Prominent among the advantages is the fact that there is no need to use the scanner to take a “reading” of the product.
Inventory: here’s why it’s important to get it right
With inventory done right, it is possible to minimize costs and increase profits, and digital solutions, such as RFID tags, make this operation especially fast as well as quick. This is why it pays to rely on innovative solutions that can provide an extra edge to the company.
It needs to be done as soon as possible, so that you can immediately improve the logistical aspect of your business and thus stay ahead of the curve, which after all is a real imperative for all companies with a winning mentality.
