Inventory Management

Warehousing

A good warehousing system is important to business for several reasons:

1. Efficient storage and organization: A well-designed warehouse allows for easy storage and organization of goods, making it easier for employees to retrieve items for shipment to customers.
2. Cost savings: Efficient warehousing can lead to cost savings in inventory management as well as reducing the need for extra staff and time.
3. Increased productivity and faster fulfillment: With an organized system in place, employees can fulfill orders more quickly, leading to faster delivery times, which can greatly increase customer satisfaction.
4. Improved inventory accuracy: A good warehousing system helps to keep accurate inventory records, minimizing errors and reducing the likelihood of overstocking or stockouts.
5. Improved safety: Good warehousing practices ensure the safety of workers and the goods being stored, reducing the risk of accidents and injuries.

Overall, efficient and well-organized warehousing is crucial for businesses to achieve optimal productivity, increased profitability, and customer satisfaction.

Our current warehousing system is designed to supplement our inventory system. To improve your inventory management, we suggest developing a warehouse layout plan. This plan should include a strategy for item placement and motion study to determine the most effective means of retrieving and transporting items to and from the delivery platform. Upon completing the layout, each product can be assigned to a designated bin, shelf, or location. This information is shared with your inventory and product modules.

To create a new warehouse, simply click on the "Add New Warehouse" button, assign a name and location, and then click the "Add" button. To add shelves or bins to a specific warehouse, click on the eye icon and access the Shelf page. From there, you can easily add a new shelf by clicking on the "Add New Shelf" button.

To add items to a shelf, please click on the eye icon. This will lead you to the item page where you can add the desired product or material. Afterwards, please choose whether you are adding a product or material, depending on which is applicable to you.

From there, select the item that you would like to store in a particular bin or shelf from the drop-down menu. Please provide the quantity of the item you have transferred to this new shelf.

Whenever you add an item to a specific shelf, the product inventory will promptly reflect its new location.

As indicated in the product inventory module, Vitamin K is now available at multiple locations, including a newly added shelf in the warehouse. To check the various locations, simply click on the “Multiple Locations” option.

The application will automatically assign an unassigned product to a "default warehouse" and a "default shelf". To avoid this, it is recommended that you assign each product to a specific warehouse and shelf of your choice.

These are three top reasons why inventory management is so important to business:

1. Efficient Use of Resources: Proper inventory management helps businesses optimize their use of resources (such as space, money, and labour). By ensuring that inventory levels are neither too high nor too low, businesses can avoid waste, minimize storage costs, and make sure that the right products are available at the right time.
2. Customer Satisfaction: Good inventory management ensures that businesses always have the stock they need to fulfil customer orders quickly and accurately. This helps boost customer satisfaction and loyalty.
3. Better Decision-Making: Inventory management provides businesses with detailed information on their stock levels, sales trends, and customer demand. This data can be used to make better decisions about ordering, pricing, and promotions. When businesses have a clear understanding of their inventory, they can make more informed decisions that help them stay competitive and profitable.

Top 10 key indicators in successful inventory management

1. Inventory Turnover Ratio: This KPI measures how many times a company has sold and replaced its inventory during a specific period. It can be calculated by dividing the Cost of Goods Sold (COGS) by the Average Inventory Value.
2. Stockout Rate: This KPI measures the percentage of time a company experiences a stock-out situation. It can be calculated by dividing the number of times a stock-out occurs by the total number of orders or transactions.
3. Lead Time: This KPI measures the time it takes to replenish the inventory once an order has been placed. It can be calculated by measuring the time between placing the order and receiving the inventory.
4. Gross Margin Return on Investment (GMROI): This KPI measures the profitability of inventory investments. It can be calculated by dividing the Gross Margin by the Average Inventory.
5. Carrying Cost of Inventory: This KPI measures the cost of holding inventory over a specific period. It includes costs such as storage, maintenance, insurance, and taxes and can be calculated by multiplying the Average Inventory Value by a Carrying Cost Factor.