4 Things People Get Wrong with Inventory

Do you have a warehouse that is filled with a variety of items that you need to track? If so, you know that it can be difficult to keep track of everything, especially if you have multiple items available. You may also need to track items that are selling or need to be kept track of while they are being resold, shipped, or stored

When it comes to managing inventory, many people have a lot of misconceptions about the best way to do it. Not everyone takes the time to put things in perspective, but it’s easy to do so when you look at the numbers.

An inventory is a list of the things that exist in a particular place that contains the name, quantity, and details of each item. To keep track of all the things that exist, it is important to maintain a complete and accurate inventory. We need to keep accurate records to show how much of each item we have. But some people do not know how to keep an inventory, what to include, organize, and calculate.

Here are the four things people get wrong with inventory:

Overselling

Inventory is a critical part of the supply chain and can be a problem spot for a company. Efficient, accurate, and timely data is essential for all activities associated with the movement of goods along the supply chain. Reliable and consistent information on your inventory along the supply chain is at the foundation of your company’s ability to sell goods and services. Our inventory system will provide you with the information you need to ensure that your supply chain runs smoothly.

Unsuccessful vendor relationships

Every company has a story about the time an unreliable vendor has burned them. For example, they’ve signed up for a huge contract with a new vendor, only to have the vendor deliver substandard materials or even nothing at all. How many of these stories have you heard? The truth is those unreliable vendors are all around us, but they’re not always visible to the naked eye. They’re not always obvious to the company that may have lost out on a contract because of their poor quality and/or service.

Not forecasting

One of the most common mistakes that new leaders make is forecasting. When forecasting, people rely on historical data to estimate future events. However, by only relying on historical data, you are missing out on important information that could change your decision. As a result, forecasting can be a misleading method of decision-making. “Not forecasting” is a term that’s been around for a while now, and it’s used to describe the common practice of assuming you’ll have whatever it is you’re forecasting. For example, if you need to stock up on a particular item, you might assume you’ll have it in stock when you open the store.

Absence of automation

IT organizations are increasingly using automation to improve their operations, but despite the benefits, people still prefer to manually pick up and put away inventory. Automation, the process by which a computer analyzes data to make decisions, is one of the most effective tools that companies can use to get things done more efficiently. Automation is also one of the most powerful ways to increase productivity and profits since it frees up employees to do other things while freeing up time to work on new projects.

The first and most important thing to know about inventory control is that it is not a case of the “what you see is what you get” mantra. You never see what you have in stock, only what you have sold or what you have credited to your credit or debit card transactions. You see what everyone sees, but what you see is always obscured. While the subject of inventory control has been also over-discussed, it’s still a difficult topic for a lot of people. 

The supply chain has changed a lot in the last decades. Gone are the days of just ordering a truck up, and a few days later, it’s there. Today, the industry is all about supply chain management and ordered forecasted demand. This is where modern fleet management systems and their applications come into play.