Inventory Control Challenges

Inventory Control Challenges (“The Cost of Doing Business”)

An unautomated warehouse causes problems, but there are solutions…

by Dani Kaplan

Misplaced Inventory

  • If inventory arriving at your warehouse is manually entered into the computer, it will result in a lag time before your sales department knows it’s in stock. There’s also a good chance goods will be misplaced due to keying errors.
  • When consolidating items on shelves, inventory often gets misplaced because the computer wasn’t updated. This results in unnecessary replenishments.
  • At physical inventory time when misplaced inventory is found, this “lost” inventory often becomes excess inventory that might never be sold.

Incorrect Shipments

  • When incorrect products or quantities are shipped, it creates a “domino effect” of business disruptions.
  • Returned products carry double freight bills and the invoices will not be paid until credits and adjustments are issued.
  • If the shipped inventory is replenished, often it might become excess inventory.
  • At physical inventory time when the lost inventory is found, this “lost” inventory often becomes excess inventory that may never be sold.

Buying Based on “Guesswork”

  • Not having accurate computer information will result in purchasing the wrong products or quantities.
  • The unsold inventory will collect dust on the shelves in the warehouse.
  • Just because a product was initially a fast moving item does not necessarily mean it will be a big seller once it reaches maturity.

Dani Kaplan, president of SMC Data System Inc., smcdata.com can be reached at (917) 647-2466. He works with corporate executives to improve purchasing, increase warehouse and distribution efficiencies and implement solutions that result in substantial savings and productivity improvements.

Dani Kaplan

As the founder and driving force behind SMC Data Systems, I bring over 40 years of dedicated experience in empowering mid-market companies through transformative ERP solutions. My journey began in 1980 when I established SMC with a vision to revolutionize how businesses handle their operations through advanced technology. Today, as a trusted advisor in ERP software, supply chain management, and warehouse automation, I am passionate about helping companies achieve operational excellence and substantial ROI. SMC Data Systems, under my leadership, has been a proud representative of VAI’s integrated ERP software, leveraging IBM Cognos Analytics to deliver real-time insights that drive efficiency and growth. Please connect with me on LinkedIn at Dani Kaplan