Take time to take stock

 

There are many symptoms of a stock management process which is operating below par.  Common ones include:

Wasted labour searching for parts not located where they should be

Inventory which has been gathering dust for several years and is consuming valuable space

Accounting headaches as computerised records bear no resemblance to reality

A backlog of unprocessed goods-in receipts

There are some obvious financial consequences, not least cash tied up in inventory which has been over ordered, and worse still inventory which could be sold but is invisible to the sales team because it has not been recorded on stock systems.

However, there are other implications too.  Mismatches between records and reality can lead to a culture of mistrust, with management suspecting that theft by employees is one of the issues, but with no evidence to support that belief.  And customers (and therefore your reputation) suffer too, for example late delivery of goods, or staff turning up for a service assignment without the correct equipment to finish the job right first time.

Transparent, practical stock management procedures are a fundamental pillar of successful businesses which process even relatively small amounts of physical product.  Whilst there are some sophisticated solutions available, such as barcode technology, the key thing is to use a methodology which is appropriate for your business – simple can be suitable.

Underlying any strong stock control system is good organisation and discipline, as well as a culture led by the management which emphasizes its importance.  Whether these things are supported by paper based systems or barcode scanners is somewhat incidental – both would fail without the right foundations to back them up.

WLP have helped clients with all aspects of stock management – from putting the building blocks in place to implementing the technological solutions which provide the icing on the cake.  Benefits include:

Providing management teams with trustworthy data which enable meaningful measures of performance

Enhanced customer experience

Better margins

If you recognise these symptoms and would like to do something to tackle the causes, contact James on 07833 545478.

 

 

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James Allison
17.12.2013