Inventory Reliability

Inventory Reliability

José Echeverria – May 11, 2015

Having a fine control over the inventory will allow your organisation to operate smoothly and efficiently. In order to accomplish this, it is necessary for organisations to have current and reliable information about the inventory movements and status. With this information, the people involve can initiate actions, such as determining the products you need to buy and even what to produce or sell. In this way, the company will be ready for any changes.


inventory-reliability-and-cycle-counting

In order to have a completely reliable inventory, users must be able to register each daily operation directly. In this manner, they will have the information instantly and it will also reflect the reality of the operation when it is happening. Software’s like LOVIS ESO allow their users to work directly in the daily operation of the system, thus avoiding rework and late loading of information.

Similarly, it is of great value to be able to control all the details of the materials that are handled within the inventory, such as classifiers of each product such as material type, line, model, class, among others. These classifiers are to be broken down to more detailed information and to rely on them for better decision making.

Besides classifying each SKU, we can know information such as:

  • Inventory levels
  • Rotation
  • Slow moving inventory
  • Damaged inventory, inspection…
  • Days of inventory
  • Reorder points and safety stock recommendations by SKU, by store and sub-warehouse, among others.

To finish securing our inventory reliability, we should implement a cycle counting protocol. In this manner, you will be able to perform the pre-count inventory by products, determining schedules, and through a system, knowing always the financial impact. In addition, it will allow you to register your adjustments.

With this type of control, the count is done in an orderly way, more consistent and in shorter times, thus achieving optimal control over inventories will enable the company to operate continuously and always with reliable and updated information.