Best Practices of Inventory Management

Inventory Accuracy

Look at a strategy that ensures Inventory accuracy. It can be locked stores on one extreme and Open for all on other extreme. Both work depending on discipline and maturity of the crowd. Locked stores ensures your inventory accuracy is almost 100%. No misuse or unaccounted issues happen when this practice is perfectly executed. The stores must be locked when unattended and will be open and managed only by authorized and trained staff to ensure no inventory movements are unaccounted. It however kills the flexibility if not implemented with strict availability of staff to run the stores and avoid issues in peak demand. You can still go for options like Back-flushing but with clear process of reconciliation at the end of the day to ensure inventory accuracy.

I dont need to highlight the importance of inventory accuracy as all of us know the result of inaccurate inventory which leads to Stock-outs or huge costs of excess inventory which in turn lead to possibility of obsolete inventories as well.

Leave a Reply

Your email address will not be published. Required fields are marked *