Improve Your Company’s Inventory Accuracy

Like company profit, inventory must continuously flow for a supply chain to be fully cost-effective. Inventory accuracy is a key variable in maintaining maximum revenue. Inaccurate counts of inventory levels can be a significant detriment in company profit. To avoid such inventory mishaps, inventory management specialists have collectively gathered a few suggestions to maintain inventory and data flow accuracy. Here are two examples of their most common observations.

Eliminate Paper Documentation

The simplest way to amplify inventory management issues is to continue the usage of paper documentation. With increased usage of paper documentation, inventory management is guaranteed to slow in production and to use up resources. Ultimately, paper documentation counteracts inventory accuracy and creates a confusing atmosphere.

Paper-based processes can’t deliver automation or real time data. Without real time data, order pickers might choose products previously selected but not keyed in, affecting inventory accuracy. Regarding inbound processes, orders may be incomplete from idle inventory that has not been entered into the system.

A key component of achieving inventory accuracy is having complete visibility of your goods. This visibility is best achieved with automated data collection—which means getting rid of those inefficient paper documentation processes.”

Sync Up Your Processes

The Chief Technology Officer of Boomi Software, Rick Nucci, explains that the key factor that will allow companies to improve inventory accuracy,“is to synchronize existing systems by integrating them with each other in real time.”

Nucci claims that inventory accuracy relies on more than three systems within an enterprise, not just the shop floor alone.

Although a batch data collection system can allocate data about recent processes, it is incomparable to a real time data system. A business can improve inventory accuracy and data flow, from order procurement through fulfillment, by integrating with customer and supplier systems. Rick Nucci suggests beginning inventory data management improvements with a process of discovery. The management team must find ways that they can improve inventory accuracy to optimize company profit.

Automation and integration are two key processes that can help you quickly and easily connect systems and exchange data, improving inventory data.

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