Tips & Trivia
Managing Your Inventory
By
Nov 8, 2005, 21:10

Getting it there

• Have the printers clearly label boxes with the codes you have assigned, the name of the item, a brief description, an image of the item on the front, and the quantity in each separate box
  
• Ask that items are never mixed together in the same box or container.
  
• Require that all shipments have a packing slip so it can be compared to what arrived
  
• Let someone there know what is to be expected, the quantity expected, who the shipper is, the approximate time of delivery. That way, the shipment can be verified.
  
• If you have a digital image of the piece, it can be a great quality check.
  
• Insist on being notified when material first arrives, then again after the material is counted. Ask that you also be alerted of any unusual circumstance, shortages, damages, etc.
  
• When in doubt, ask for a sample (physical or digital image). This also works well for damaged pieces and/or boxes.

• Insist that your part numbers be used, whether consistent or not
  
  • When an item comes in without a part #, it is easier if you have some consistency, (such as using the code on the back of the item), so there will be no delay in making it available for ordering
  
  
• Establish business rules for how material is to be used
  
  • How to treat additional pieces, same version (LIFO, FIFO, scrap old, use new, etc.)
    
  • How to treat new versions (use up old first, destroy all old, do not use new until certain date, use new part number, add an identifier)
    
  • Ask that any items to be scrapped need to have written authorization from you
    
    • Getting a sample of what’s to be scrapped adds another layer of quality control
    
    
  • Assign reorder thresholds for each item, based on how long it takes to reproduce item
    
    • ask for notification when threshold reached
    
    
  • Make sure that material gets physically counted on a scheduled basis (merchandise and premium items more often


Getting access to materials

• Visit the warehouse to see if it’s clean and well-organized with easy access to your materials
  
• Organize your inventory by categories for easy ordering
  
• Consider placing restrictions on ordering material (can be based on quantity, by defined time frame, or by item, especially premiums)
  
• Or put an approval process in place beyond a certain threshold for each item
  
• Have a standard order form, whether it’s through your web-site, an on-line store, by mail, fax, or e-mail. Then everyone is using the same codes and wording
  
• Consider an on-line system for consistency, control, tracking, and real-time data


Finding out where it’s gone

• Check the data on a regular basis
  
  • Having real-time data available 24/7, with ability to query and capture information in any timeframe is ideal
    
  • Make sure that reports are available electronically or in hard copy (PDF, Excel, and Word formats are most common)
• 
  
• Look at both summary and detail level reports
  
  • Activity reports on products, orders, backorders, and shipping
    
  • History reports on products, usage of product and who’s ordering what
    
  • Other reports such as inactive product movement, understocked items, backordered items



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