1. Introduce inventory cycle counts
Carry out routine cycle counts of your inventory and monitor the discrepancies. Over time, patterns may start to emerge. Investigating these patterns can help you spot fraud in your business which has been estimated to account for up to 44% of inventory shrinkage.
2. Make sure goods are “booked in” correctly
Inventory discrepancies commonly get traced back to simple mistakes made at booking in. Train your staff to carefully check that the inventory received matches what was expected. Being thorough at booking in will yield dividends in terms of trust in your systems and improved customer satisfaction levels.
3. Use barcode labelling on Products and Locations
A great way to prevent “Put-Away” errors is to scan both the product and the location barcodes as a double check. Putting the wrong product in a location can cause you serious problems further down the line.
4. Use barcodes and scanners to improve efficiency
Your customers expect their orders to be delivered on-time and in-full. Picking and packing mistakes can have a serious impact on customer satisfaction levels, your supplier ratings and your profit margins. Failing to meet customer expectations can result in costly fines plus additional transport and administration costs. By using barcodes and scanners for inventory put-away, picking and packing your on-time and in-full delivery performance can be markedly improved.
5. Warehouse layout, signage and ergonomics boost productivity
Your warehouse layout and its signage will make a huge difference to your overall operating efficiency. Clearly label your stock locations with both the product name and the barcode number. Also, having your inventory at a comfortable height so that warehouse personnel do not have to climb too high or stoop too much, helps reduce the number of errors and improves productivity.
6. Avoid mix ups
Make sure inventory locations have sufficient capacity to comfortably store the required inventory without any danger of it overflowing and getting mixed up with a neighbouring item. Having inventory clearly separated improves put-away and picking operating efficiency.
7. Don’t be a hoarder
Typically, your warehouse space is at a premium, so don’t fill it with inventory that is slow moving, unsaleable, out of season, superseded or obsolete. Take immediate action to sell it off, donate it, scrap it or recycle it.