Last updated on Dec 30, 2023
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Use barcode scanners
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Implement quality checks
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Use inventory management software
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Train and motivate staff
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Conduct regular audits
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Benchmark and improve
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Here’s what else to consider
Inventory accuracy is crucial for warehouse operations, as it affects the efficiency, productivity, and customer satisfaction of the business. However, recording inventory accurately when it is received can be challenging, especially when dealing with large volumes, multiple sources, and human errors. In this article, we will explore some of the best ways to record inventory accurately when it is received, and how to implement them in your warehouse.
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- Arturo Vargas Ecommerce executive - VP of Operations - Fulfillment Centers - 321 fulfillment - Nearshoring
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1 Use barcode scanners
One of the most effective ways to record inventory accurately when it is received is to use barcode scanners. Barcode scanners can read the unique codes on each item, case, or pallet, and automatically update the inventory system with the correct quantity, location, and status. Barcode scanners can also reduce the risk of manual errors, such as miscounting, mislabeling, or misplacing items. Barcode scanners can be handheld, fixed, or mobile, depending on the needs and layout of your warehouse.
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Its cruial to have electronical connection within the supply chain which eventually will reduce the number of scannings.Of course implementing some pokayokes to find corelation between packaging instructions and received shipments would be helpfull.
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- Syed Faisal Karim Deputy Manager at Indus Motor Company Ltd
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Currently the most effective way of recording inventory is bar code scanners but I believe RFID can further reduce the work load and make this process much efficient.
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2 Implement quality checks
Another way to record inventory accurately when it is received is to implement quality checks. Quality checks are inspections that verify the condition, quantity, and specifications of the incoming inventory, and compare them with the purchase orders, invoices, and packing lists. Quality checks can help you identify and resolve any discrepancies, damages, or defects in the inventory before it is stored or shipped. Quality checks can be done at different stages of the receiving process, such as at the dock, in the staging area, or in the storage location.
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To improve inventory receipt quality:1. Develop detailed receiving procedures.2. Provide staff training on quality checks.3. Create documentation templates for consistent recording.4. Define clear inspection criteria for each product.5. Implement technology like barcode scanners or RFID.6. Establish a sampling method for large quantities.7. Communicate quality standards with suppliers.8. Create a feedback loop for staff to report discrepancies.9. Foster a culture of continuous improvement by regularly updating procedures based on feedback and evolving needs. Implementing these measures enhances accuracy and ensures only high-quality products enter the warehouse.
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Quality checks should be implemented as part of the life cycle of stock, time should be allocated to this so that inventory accuracy is achieved.
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- Andrew Machuta Procurement Category Manager at Siteone Landscape/Pioneer Landscape
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To ensure accurate inventory recording upon receipt, implement quality checks such as barcode scanning or RFID technology. These methods reduce human error, enhance efficiency, and provide real-time data, promoting more accurate inventory management in a warehouse.
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3 Use inventory management software
A third way to record inventory accurately when it is received is to use inventory management software. Inventory management software is a system that tracks, monitors, and controls the inventory levels, movements, and transactions in your warehouse. Inventory management software can help you automate the data entry, update, and validation of the inventory information, as well as generate reports, alerts, and analytics. Inventory management software can also integrate with other systems, such as barcode scanners, quality checks, and accounting software, to create a seamless and accurate inventory workflow.
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When new stock arrives at a busy warehouse you don’t want a human determining the best place to store it. Inventory management software or if you are medium-to-large size, a warehouse management system. When new stock arrives at a busy warehouse you don’t want a human determining the best place to store it. The WMS knows right away, as it has instant access to your past and current inventory as well as possible storage locations. Consider a situation where a customer sends an order, a WMS instantly checks to see if the product is available. Imagine if every time a human being manually verified the order against the available stock.
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Você pode utilizar sistemas de RFID para leitura do estoque quando entrar ou sair do seu estoque. Barreiras virtuais fazem a leitura do código da etiqueta colocada no material, fazendo então automaticamente a inclusão do estoque em seu sistema e vice versa.
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4 Train and motivate staff
A fourth way to record inventory accurately when it is received is to train and motivate staff. Staff are the ones who handle, scan, check, and store the inventory, so they need to have the skills, knowledge, and attitude to perform their tasks accurately and efficiently. You can train and motivate staff by providing them with clear and consistent instructions, feedback, and incentives, as well as creating a culture of accountability and quality in your warehouse. You can also involve staff in the design and improvement of the inventory processes, and encourage them to report and correct any errors or issues.
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- Arturo Vargas Ecommerce executive - VP of Operations - Fulfillment Centers - 321 fulfillment - Nearshoring
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Tranining is the key of success in inventory accuracy, a well trained team will avoid mistakes and will create the level of engagement to raise the hand when a mistake is made, instead of trying to burry it.
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- Syed Faisal Karim Deputy Manager at Indus Motor Company Ltd
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Error reporting is the key in inventory receiving operation. It will impact inventory accuracy and control. Staff needs to be encouraged to report errors timely and against each error countermeasures must be taken to avoid reoccurrence in future.
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Human factor is always important therefore having motivated and trained work force would make the difference especially on the follow up found mistakes and solve them permanently.
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5 Conduct regular audits
A fifth way to record inventory accurately when it is received is to conduct regular audits. Audits are reviews that measure and evaluate the accuracy and completeness of the inventory records against the physical inventory. Audits can help you identify and correct any discrepancies, errors, or frauds in the inventory system, as well as assess the performance and compliance of the staff and processes. Audits can be done periodically, randomly, or cyclically, depending on the size, complexity, and risk of your inventory.
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While cycle counting is important, to do analysis and check the frequency of errors for the same material and track the problem until the source is more important.
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- David Mower “Dynamic Production Manager at WhiteClouds | Orchestrating 80-150 Custom Projects Simultaneously with Innovation | Leading a Team of 40+ Towards Excellence”
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Audits are critical in this process. I prefer a combination of cyclical as well as random audits. Set goals for accuracy and make sure the team understands what they are. Hold everyone accountable for these goals or it will all be for nothing. Communicate, Communicate, Communicate!
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- Caleb Ladd Warehouse Team Lead at Uline
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Accountability in your receiving processes allow for the most accurate and efficient use of labor hours. Conducting audits can ensure that theses standard operating procedures are followed as planned. Audits should depend on size and complexity of your operation.
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6 Benchmark and improve
A sixth way to record inventory accurately when it is received is to benchmark and improve. Benchmarking is the process of comparing your inventory accuracy with the industry standards, best practices, and competitors, and identifying the gaps and opportunities for improvement. You can benchmark and improve your inventory accuracy by setting realistic and measurable goals, tracking and analyzing the key performance indicators, and implementing the best practices and solutions. You can also seek feedback and suggestions from your customers, suppliers, and partners, and continuously monitor and adjust your inventory processes.
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7 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Sadaqat Ali Assistant Manager Merchandising | Commercial Manager| Category Manager | Buyer | E-Commerce | Cost Planning | Merchandising | Sales Planning Business Reporting | Inventory Management
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To record inventory accurately when received, use barcode scanners and IMS/WMS. Implement/integrate with PO, and consider RFID/Scanning technology for real-time tracking. Train staff, establish SoPs, and utilize cloud-based solutions for accessibility(MS Dynamics, WMS, etc.). Conduct regular audits, set KPIs for accuracy, and build a culture of continuous improvement/upgradation
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To record inventory accurately when received, use barcode scanners and inventory management software. Implement quality checks, integrate with purchase orders, and consider RFID technology for real-time tracking. Cross-train staff, establish standardized procedures and utilize cloud-based solutions for accessibility. Conduct regular audits, set KPIs for accuracy, and foster a culture of continuous improvement.
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