Maintaining Inventory Accuracy: Tips From the Pros
When there are discrepancies between your company’s electronic inventory records and what actually exists in your stockrooms, you have a problem that can affect customer service, undermine effective accounting practices, and contribute to financial losses. According to inventory experts, a consistent inventory plan is integral to maintaining inventory accuracy. One that works, say the pros, will require an organisation-wide effort and well-defined written procedures, as well as employee training and testing.
Getting Everyone on Board
According to Dave Piasecki, author of ‘Inventory Accuracy: People, Processes and Technology’, to maintain inventory accuracy, accuracy itself must become a top-down organisational attitude. Everyone needs to consider it their responsibility and rate it among other high priority areas such as customer service and workplace safety.
Once procedures have been defined, employees must take ownership of them through training that gives them an understanding and appreciation of the company’s inventory goals.
If workers are trained and informed, says Deborah Catalano Ruriani, in her article ‘Improving Inventory Accuracy’, they are more likely to consistently carry out procedures accurately.
Procedures Which Maintain Inventory Integrity
Get as many people as possible involved to help you thoroughly map the processes that affect inventory. According to Piasecki, enough time should be devoted to the process that errors and the areas that can be changed to reduce and eliminate them are highlighted. Once the processes have been defined, they should be clearly documented and outline job specific inventory-related tasks. They should also include guidelines on how to fill out and process paperwork.
A well-designed inventory plan promotes productivity and quality service. It also makes it easy to track and reward your top performers. Ensuring that staff are trained and have the opportunity to master the new information through simple tests and compliance checks can also have the unexpected benefit of boosting morale.
Promoting inventory accuracy and further productivity includes the management of storage areas, and according to Duffy Discount (https://www.duffydiscount.com/Bin-Rack), top retailers of stockroom and warehouse bin racks in Ireland, organised stockrooms with the right shelving and product labelling make it easier to keep track of stock.
Other experts agree. While inventory control extends beyond the stock room, they say, being able to count your products and account for their whereabouts is still an important part of the process.