To say inventory management is costly is an understatement. As any manufacturer or distributor knows, inventory is one of the highest items on a company’s budget. From the initial purchase of inventory from suppliers to the carrying costs involved in storing and processing each item in the warehouse, the costs associated with inventory management can quickly become out of control. In fact, for many businesses, inventory management is the one area they are constantly (and tirelessly) working to improve.
If you are in the manufacturing or distribution industry, you know a thing or two about inventory management. In addition to being one of the most costly areas of your business, inventory is also one of the most challenging areas to manage. Not only do you have to ensure you have the proper amounts on-hand, but you also have to store inventory in a manner that optimizes efficiency and productivity. This means placing the most popular items in easily accessible locations so workers can move them through the warehouse and load them on a truck in a more efficient manner.
Most manufacturers and distributors agree that their inventory management processes could use an overhaul, but many do not know where (or how) to begin. Should they implement more efficient processes for moving inventory? Should they reduce the amount of inventory they store in the warehouse? Should they cut other existing overhead costs? While they can’t reduce the amount of inventory in the warehouse (unless they are keeping too much on-hand), they can find ways to stock inventory smarter.
Barcoding: The Answer to Smart Inventory Management
For many manufacturers and distributors, inventory-related costs are becoming too high to bear, and, in an effort to alleviate inventory management pain, they are turning to automated technology such as barcoding solutions to ease the burden (and cost) of inventory management. Barcoding can help manufacturers and distributors keep a close eye on their inventory levels and locations, as well as reduce the time it takes to locate inventory in the warehouse. By implementing a barcoding system that is integrated with the company’s ERP software, manufacturers and distributors can gain complete control over their inventory situation and eliminate inefficiencies that lead to high inventory management costs.
Here are just a few ways barcoding helps reduce the cost burden of inventory management:
- Barcoding improves overall inventory accuracy.
- Barcoding allows you to track employee performance so you can be proactive about increasing productivity in the warehouse.
- Barcoding decreases administrative costs associated with inventory management for they reduce the need for manual data entry. Companies will save money on paper, ink, and more.
- Barcoding reduces the amount of errors due to improved tracking and verification.
- Barcoding allows for the better scheduling of warehouse activities.
Does your inventory management process need some work, or could you simply use a better way of tracking inventory as it moves through your warehouse? Contact our barcoding experts today. We’d be more than happy to discuss your current warehouse situation and align you with solutions to improve your operations and decrease your costs.