If you are on LinkedIn you may know that I am an active contributor to various forum discussions.
A few days ago I made the comment on one such discussion on how to control inventory.
My comment was:
‘Controlling inventory is simple – after all it (usually) doesn’t get up and walk away by itself! (I say usually because I am sure that someone will write in about their inventory of critters!)
There are no real technical barriers, no system barriers, and no educational barriers.
The hard parts are (sometimes) resourcing and having the discipline to do the work to identify and track it.’
In my mind, inventory management is as simple and yet as difficult as that and control requires accurate inventory records.
Why Accurate Inventory is Important
Maintaining accurate inventory records is important because everything else hinges on the ‘on hand’ values being correct. If your ‘on hand’ values are wrong nothing else works. You stock out unexpectedly, you overstock your inventory, and you create extra work for all concerned. The implications of any of these outcomes can be significant: wasted money, additional downtime, exorbitant expediting costs, and inefficient labor to name a few.
The Real Issue With Accurate Inventory
The real issue though is that the inventory doesn’t walk away by itself. A member of your team, not doing what is required to accurately record the relevant transaction, is what creates inaccurate inventory records.
There are a number of reasons for this behavior and equally a number of ways in which it can happen but the first step to achieving inventory accuracy is to recognize the importance of establishing the resources and instilling the discipline to control your inventory transactions.
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