How do you use inventory management software to reduce inventory costs and wastage?

Automation can be highly beneficial in managing inventory. It can help streamline processes and troubleshoot inefficiencies at the source. And, as the world and society around us evolves, so much our technology. However, technical issues, inaccurate or blanket forecasting, and shelf life risk and just a few risks that you should prepare for if you are working towards automating your inventory process. Just remember— the more user friendly, convenient, or advanced the system is for the end user, the more complex it is going to be on the back end.

In this case, discrepancies can be just as important to evaluate. While the software manages your data, people are often moving the product at some point so it is vital to determine the true source of the discrepancy in order to improve the accuracy of your inventory management.

In my opinion you should also consider the training portion of the software being used for inventory management. Often times users are not properly trained, or being monitored and measured which leads to poor results. The best system is only as effective as those who really care and have an incentive to use it. I have also placed a few of the A,B,C items on a daily list and monitored those over a 2 week period just to make sure the system is working as it is set up.

Great point Shawn! Also, document your business processes that are independent of the system you utilize to help understand the accuracy of your data. Batch paperwork that takes 48 hours to move through your processes will provide a completely different picture than RFID scanning on picking. Utilizing an expected loss versus actually measuring loss can compound. Philosophy will impact.

One thing to add is about how you lay out your inventory foot print. I know it may depend on physical square feet available, location to internal customers, number of SKUs, size of items, etc…but what are some opinions/experiences that can be shared to not only automate but consolidate and optimize existing space? After all, most businesses that require inventory have a limit on space at some point and cost and output per Square foot is something that must be considered, especially if competing for that same space with manufacturing or operations.