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How to keep better track of inventory?

When we speak of inventories relate it immediately inventory control of products and goods, where many companies apply different methodologies for analysis, control and records. An efficient inventory control is directly related to that there is minimal loss of merchandise, the greater the quantity of products to control the greater the risk of leakage of material and the company should have an automated system and an appropriate methodology to cover these needs.

Inventory control is not easy, for example, a small and / or medium-sized company that is launching in the market should be evaluated at least the procedures of inputs and outputs of products; and use inventory control techniques to suit the requirements of the branch of the company and customers. In the books of logistics and inventory established in inventory management should be considered the following activities:

» Take physical inventory

» Audit of stock

» Inventories Procedures

» Cyclic Counts

» Analysis of Inventories

These procedures or activities as they like to call them, are essential as there are a larger range, but if you are starting or want to improve inventory accuracy indicators should be considered in its logistics management. The area of inventories that complements store first be treated separately from the other areas of the supply chain or logistics network location. In some advice I have observed and businesses to reduce costs have one person or manager to manage inventory and warehouse at the same time, and results in 90% of cases viewed negatively affect operations with large leaks inventory.

Once you have a person or department dedicated solely to the control and analysis of inventories (the number of staff will depend on the volume and size of items to be controlled), then this specialist must have basic functions and now if we develop in depth:

Take physical inventory: should be performed periodically takes inventory of products, the period will be determined by the volume or size of the store. There are many techniques for inventory; such as manuals, frequency readers, etc .. In any case there should be a control format of records that must be validated by the Warehouse Manager and / or the Inventory Manager.

Audit of stocks:

Audits are not something that inventories other than to make the company either internal auditors or outsourced, to perform physical outlets monthly inventories, semi and / or annually as required by the organization in order to certify that they are compliance with the internal procedures of the company.

Inventory lift procedures:

For guidelines, instructions, rules, forms, steps, calculate indicators and take preventive and corrective actions, it is essential that the company has raised the processes, sub-processes and procedures to carry out a good inventory management .

Cycle counts:

This procedure is a technique of physical taking of inventory especially for those companies that have in their stores a large volume of inventory, and can not perform 100% of the inventory in a day or in a short period, is also characteristic in companies have lots of work and can not afford to devote to inventory all the time, so different storage areas are selected each day to count, to complete the total inventory count. That is, if there are 10 shelves in a store, the first day shelf No.1 counts, the second day shelf no. 2 and so on until the cycle. The important thing is that these inventories daily to keep the habit and during the early morning hours done.

Analysis of Inventories:

This activity is last but not least, since to do an inventory analysis is required to feed on the above procedures. When we speak of analysis involves: definition of codes, book inventory, inventory transcription, differences between the physical and the theoretical cost differences, observations, among others. If the company has a modern integrated system such as SAP to manage inventory, inventory analysis be easy, and even more if the products have codes labeled bars, otherwise we should have at least one table in Excel where we can migrate easily theoretical inventory and can be emptied all the information told in the warehouse for analysis between spot and what must exist. This information should be thoroughly reviewed and tested before it is reported to our immediate supervisors. You are advised to take a daily, weekly and monthly indicator to measure the accuracy of the inventory in order to measure the effectiveness of our inventory.

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