1. Prevent Shortages with Set Minimum Reorder Quantities

Maintaining adequate stock levels is crucial to avoiding delays and downtime. Set minimum reorder quantities and establish reorder points based on item demand and lead times. Automated inventory systems can alert you when stock reaches the reorder threshold, ensuring you receive necessary items just in time. For operations using Just-In-Time (JIT) strategies, this practice is essential to maintain continuous workflows without overstocking.

2. Standardize Your Inventory Handling Process

Choose and implement an inventory handling process that aligns with your products and business model. For items with expiration dates or limited shelf life, the FIFO (First-In, First-Out) method is typically best. However, for non-perishable goods in dynamic or high-demand environments, LIFO (Last-In, First-Out) might be more efficient. Having a standardized process for moving inventory ensures consistent stock rotation and reduces waste.

3. Improve Theft Protection

Inventory loss due to theft is preventable through strategic controls. Implement an inventory management system that monitors all transactions and activity. Physical security measures, like surveillance cameras and locks for high-value items, add an extra layer of protection. For high-cost SKUs, consider using RFID technology to track locations in real-time and quickly identify any missing items.

4. Select Storage Method Based On SKU Activity

Grouping inventory by SKU attributes like velocity and size improves accessibility and efficiency. Place bulky, fast-moving SKUs in front pick zones for easy access, while medium-velocity items may be best suited to automated storage. By assigning appropriate storage methods, you streamline picking processes, making it faster and easier for staff to retrieve products.

5. Plan To Scale

A forward-looking approach to storage infrastructure saves time and money as your business grows or changes. Opt for scalable storage solutions that can adapt to new product lines or expanded inventory. Rather than focusing solely on current needs, consider your long-term goals to avoid costly changes or last-minute investments.

6. Implement Routine Cycle Counting

Regular cycle counting enables you to maintain accurate inventory levels and minimizes the need for exhaustive year-end counts. By counting smaller portions of inventory on a consistent schedule, you can spot discrepancies early, correct issues, and ensure accurate records. Monthly or quarterly cycle counts also reduce the workload during annual audits and support a more organized, up-to-date inventory.

7. Consider Weigh Scale Counting for Small Items

For small, high-volume items like nuts and bolts, weigh scale counting is a quick and accurate solution. By measuring the total weight of items and dividing it by the weight of a single item, you can easily verify counts without manual counting. This method enhances productivity, reduces errors, and frees up employee time for other tasks.

8. Carefully Define Your Returns Handling Process

Effective returns management is vital to maintaining order in your warehouse. Document and communicate a clear returns process to avoid bottlenecks and backlogs in the receiving area. A streamlined returns process also prevents clutter, facilitates faster restocking, and ensures items are properly accounted for in inventory records.

Talk To a Warehouse Expert

Each of these best practices supports a well-organized and efficient inventory management strategy, helping warehouse managers optimize space, streamline workflows, and prepare for growth.  If you’d like to learn more about inventory management technologies and practices, get in touch with a warehouse automation expert at Raymond West Intralogistics Solutions today.