Inventory losses can manifest in various ways; from obsolete or expired goods to theft, inaccurate forecasting, damage or spoilage, and miscounting. A reliable and repeatable counting method is essential to identify and understand inventory shrinkage.Each warehouse chooses their own method to count inventory, it is then reconciled with a warehouse management system (WMS). Once set up, the warehouse can start recording its inventory.What does the inventory data say?
Recognizing trends in the data can help you identify the sources for inventory shrinkage.
Are the losses happening cyclically?
Are the discrepancies taking place specifically at times of restocking, replenishment, or put-away?
Are items being misplaced?
Are items being mixed?
Are items properly labeled and stored for easy identification?
Why is it important?
Inventory issues can have substantial negative effects. Sending an incorrect or improperly labeled item to a customer not only damages customer satisfaction but also erodes your profit margin. The procedures for handling customer returns and restocking pose additional risks for potential inventory loss.Key to resolution is employee training, security measures, and the development of a robust inventory monitoring system. Establishing standard operating procedures, using barcoded labels, and digitizing transaction records contribute to comprehensive recording. By booking or reconciling inventory changes into your WMS, the entire fulfillment chain becomes aware of the current inventory status. Fling.AI provides an independent solution for inventory counting, seamlessly integrating with your current warehouse fulfillment operations. It’s time to take charge of your inventory processes and get lost inventory issues under control. To learn more about the impact of drones and AI technology in warehouse inventory management, visit fling.solutions.
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