The Ultimate Guide to Stores & Inventory Management

Apr 8, 2022 in Inventory Management

7 MIN READ

the-ultimate-guide-to-stores-and-inventory-management

Does it feel like you have to juggle five balls in the air, but have one hand tied behind your back? Does it feel like there are never enough hours in the day to get all of your work done? There's a solution, but don't break out your Megatallitron 4000 just yet — warehousing doesn't have to be a pain. Complicated systems exist that can make warehouse or store management easier, but they tend to be more expensive and difficult to use than they're worth.

The warehouse is the heart of any company's supply chain. In this Ultimate Guide to Stores & Inventory Management, I'll show you how to set up the best warehouse management system that will help you streamline your business and eliminate loss.

What is Store or Warehousing Management?

Warehousing management is the act of managing and regulating all of the parts in the warehouse to ensure that everything operates well. Store or warehouse management encompasses everything from store layout settings, inventory control, equipment maintenance, verifying incoming and departing items, picking, packaging, and shipping commodities, to the usage of automated warehouse management systems.

What are the steps involved in Warehouse Inventory Management process?

1. Setting Up a Warehouse Layout

The most crucial step in optimising store management is to ensure that the warehouse architecture is efficient.

What factors should be considered?

You must concentrate on two things: enough room for your full inventory and enough space for your crew to work and pass by. A good warehouse, in general, comprises the following areas:

  1. Receiving zone
  2. Area for unpacking
  3. Packing zone
  4. Shipping zone
  5. Extra storage space
  6. Warehouse administration
  7. The primary storage area

Setting up the warehouse plan might be tricky if you have limited space. As a result, sketching is essential before organising or modifying the present arrangement. You may utilise the barcode system to make things easier.

The grid method can help you plan the layout of your warehouse. Remember to offer spaces where employees may walk quickly and easily pick up products. Pickers must be able to go back and forth in the corridor without colliding.

2. Optimizing Inventory Management in the Warehouse

You have strategically structured your warehouse layout at this point. But then you wonder, "How should I store my products?"

The solution is straightforward: put the best-selling items nearest to the packaging area!

Apply the ABC Analysis!

Find your best-selling items and place them as close to the packaging area as feasible to decrease walking time. An ABC analysis is used in this method. Sort your items into three categories:

First category A – Products with the highest sales frequency; 20% of these products account for 70-80% of annual sales.

Second category B – Products with moderate sales frequency; 30% of these products contribute 15-25% of annual sales.

Third category C - Products with the lowest sales frequency; 50% of these products provide only 5% of annual sales.

As a result, you can place products in category A closest to the packing counter and products in category C further away.

To reduce time selection, position tiny things that are commonly sold with the best-selling products near the packing counter.

Guidelines for Receiving Inventory in a Warehouse.

You must ensure that your workers can receive, unpack, store, and order new things as efficiently as possible for optimal storage.

Digitally managing the inventory

The faster this occurs, the sooner the stock becomes accessible for purchase.

Errors or inefficiencies in this procedure will have a ripple effect throughout the supply chain. As a result, you should employ methods that promote efficiency. One of the most effective methods is to employ a warehouse management system with a mobile scanning option.

Receiving items will be a lot easier with an automated warehousing management system like TranZact. Instead of having to sit in one spot and manually search for and update each incoming item, you can use this cloud-based solution to update purchase orders, change inventory quantities, and categorise products using any device.

Read more - Inventory Management: Ultimate Guide for SMEs

3. Accelerating the Order Fulfillment Process

One of the best warehousing strategies is the ability to fill orders swiftly and accurately. After all, this is why warehousing was invented in the first place. When it comes to ordering fulfilment, three factors must be considered: choosing, packaging, and shipping.

4. Evaluating and Measuring the Performance of Your Warehouse

Evaluation is essential for proper warehousing. When determining the success of your warehouse management, consider the following indicators:

1. Process of Receiving

Learn how much time is typically spent on receiving, as well as how your staff registers incoming things and stores them. It takes a long time to record and update inventory using the manual method. As a result, implementing an automated warehouse management system is critical!

2. Returns on Products

Understand the causes of client orders being returned to your warehouse. This could be due to erroneous products, incorrect mailing addresses, late deliveries, damage in transit, and other factors. Analyzing the issue will greatly improve your warehousing performance.

3. Choosing Procedure

Measuring the accuracy of the picking process can provide information about the functioning of your warehouse.

4. Lead Time

Lead time is the time it takes for customers to receive orders, also known as order processing time. The shorter the lead time, the happier your customers. Make certain that rapid delivery does not degrade the condition of your merchandise.

5. Selecting the Best Warehouse Management System

Warehouse Management Software (WMS) may essentially take over the majority of warehouse activities. As many processes as feasible will be automated and digitised using this tool.

An automated warehouse management system assists you in keeping everything organised, tracked, and documented. Human error can be reduced to improve accuracy. And, without a doubt, all processes will become faster and simpler. Finding the correct warehouse management system, on the other hand, might be difficult.

Find out the answers to the following questions to help you choose a WMS:

  1. How accurate is your present choice process?
  2. What are your key performance indicators for warehousing? And how profitable will it be if each of those KPIs is optimised?
  3. How many team members are required to complete your operations? Is it more cost-effective to replace some of them with an automated system?
  4. How many orders do you process every day? And how much money do they make each year?
  5. Have you met your growth goal? How quickly do you intend to expand your business?

Important characteristics to look for in a Store or Warehousing Inventory Management System.

  1. Warehouse organisation skills: Aids in the speeding up of numbering, labelling, storage, picking, packing, and shipping.
  2. Barcode scanner integration: Can be utilised on mobile devices and combined with barcode scanners to save paper usage and improve accuracy when picking and packing.
  3. Management of many warehouses: This allows you to easily manage all stores or warehouses across numerous locations.
  4. Usability: A basic platform that each user can quickly learn and use.

Other automated systems integration: This allows you to combine it with other systems for the best results, such as an inventory management system, a sales management system, an accounting system, and so on. 5. Real-time reporting: This allows everyone to follow the information in real-time and record every activity in the warehouse, such as goods entry and exit, accurate inventory numbers, and so on.

Way Forward

So far, you've seen the significance of a warehouse management system for your organisation, whether it's SMEs or manufacturing. And, in this day and age, it is only helpful to employ a software solution. As a result, organisations can select from a variety of software options on the market. However, they should determine whether it meets all of their requirements. We also have TranZact for Indian SMEs and manufacturing businesses.

TranZact is a zero-effort digital transformation tool and platform for SMEs that allows them to digitise company operations from client inquiry to delivery. It assists SMEs with warehouse management requirements such as managing regional and local distribution centres by constructing and managing various warehouses. Companies can look at it and decide whether or not to use it.

The TranZact team offers their digitising tool on a Freemium model. Because we want our customers to take the first step toward digitising their businesses without having to worry about large sums of money.

Furthermore, enterprises must only select TranZact or any other software if it fits all of their needs.


TraZact

TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.