Inventory accuracy depends on so many moving parts. But a top-to-bottom understanding of the process combined with speedy adjustment responses would dramatically improve accuracy, thus, boosting business results.
Inventory accuracy is fundamental to manufacturing and distribution. A 3-tiered cycle counting system can simplify inventory management while improving accuracy.
Inventory management relies on fundamentals like cycle counting to catch discrepancies. But it has to be coupled with a focus on process disciplines or you’ll end up reliving the same problems every day.
Completing a physical inventory is a necessary part of inventory management because accuracy doesn’t just happen, it needs to be achieved.
Supply chain optimization focuses on demand planning, inventory accuracy, and collaboration to improve efficiency and customer satisfaction
Warehousing is often overlooked for its simplicity, but it’s one of the strongest links in your supply chain.
Prepare, prepare, and prepare: 80% of your success is in preparation. Organize the warehouse, clearly mark areas, label exceptions, complete and review system transactions, etc. Stop / isolate movement: When you begin your physical count, stop all physical and system movements and transactions. This is a critical foundation - [...]
The key to effective cycle counting is to not get bogged down in resolving every dollar, but rather focus on the significant discrepancies. The main goal of cycle counting is to cycle through your inventory to ensure inventory accuracy on a consistent basis. (In contrast, a physical inventory is [...]
Meant to protect investors and increase transparency in corporate accounting, implementing the Sarbanes Oxley Act takes some organizational introspection. The 2002 Sarbanes Oxley legislation (new, enhanced standards for all U.S. public companies) was established in response to high-profile financial scandals (Enron etc) in order to protect shareholders and the [...]
Inventory accuracy is often overlooked, but it is vital to to bottom line business results. Although a bedrock topic, inventory accuracy is often overlooked in operations strategy discussions as it becomes an assumption or something that just should occur. However, I am constantly reminded of its vital importance and [...]
