Warehouse inventory management is a systematic approach to obtaining, tracking, and profiting from inventory as it moves in, through, and out of either one or more warehouses.
Inventory, here, can refer to raw materials, products in development, finished products, and MRO goods. It’s essential that you know where these materials are held, as well as the levels of each stock within your warehouse.
Whenever items are received or delivered, you’ll need to have processes in place to ensure these transfers are documented accurately. This also applies whenever transferring inventory within your warehouse (or otherwise transferring it internally).
Warehouse inventory management is all about maintaining healthy levels of accessible inventory. So — in both a concrete and abstract sense — you’ll need to have proper visibility and control over your inventory at all times.
Inventory management minimizes your chances of experiencing stockouts or spoilage through the use of strategic planning and forecasting, as well as proper use of storage space.
When you always know how much of a given unit you’ll need at any given time, you’ll be equipped to maximize the flow of said inventory as it goes through your warehouse.
Inventory management also protects from excessive inventory damage or loss. Since all items are tracked as they move through your warehouse, it will actually prove difficult for your team to lose said inventory along the way.
In clearly defining your inventory’s path through your warehouse, you’ll minimize unnecessary touchpoints — making it less likely that the items will be damaged while under your control.
What’s more, proper warehouse inventory management ensures that items are stored and delivered in an optimal location for accessibility purposes. For instance, you may decide to store items with high turnover nearer to your loading area, while leaving less ideal locations for inventory with low turnover and longer shelf life.
Ultimately, all of this adds up to one overarching benefit: an improved bottom line.
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