Friday, May 16, Replenishment Policies and Inventory Planning The two processes of replenishment and inventory are closely related. The inventory planning process establishes the optimal inventory levels that must be maintained to meet expected service levels for demand fulfillment.
Written procedures that are understood by all involved is a good first step that will help to assure a well controlled and disciplined count and allow you to focus on an accurate count which will be more efficient and take less time.
The more time you spend on the preparation of a count, the less time it will take to perform the count and the more likely you will have an accurate count and minimize re-counts. An inaccurate physical affects at least two years!
Preparing for a Physical Inventory Schedule the Count Date s Set the count date well in advance so everyone has time to prepare for it and schedule around it. Avoid busy seasonal times and times when your team may not be available or will be preoccupied and less likely to be focused on the task at hand.
If you have multiple stores or stock locations, multiple dates can be selected. Often this is preferable, especially as it allows your management staff to be available for supervision. Human Resource Considerations While you must consider the availability and experience of your staff, you must also consider the importance of checks and balances and personal accountability.
Swapping store personnel to other stores is ideal for multiple store locations. Of course, third party inventory services provide an alternate resource. They have an advantage of being independent and have no tracks to cover.
On Manual inventory process other hand, they do not know the merchandise and physical stock locations as well as your own staff. Third party services are usually most effective when they work closely with your staff.
For example, the service can take detailed counts and your staff can perform verification counts to double check their work. Select Your Counting Method s There are various methods for counting. The best method depends in part on how merchandise is managed and how your stores or stock locations are laid out.
Computer Generated Count Sheets — Computer Generated Count Sheets are preprinted lists of inventory generated by your software that can be used to record your on hand counts. As opposed to following a wall to wall fixture map, count sheets make it nearly impossible to assure that all merchandise is counted.
If they are used in conjunction with a wall to wall count, too much time will be wasted paging back and forth to find the associated items to record counts. However, count sheets can be useful when performing narrow spot inventories, especially cycle counts.
Count Sheets can also be useful when counting back stock or warehouse locations where product organization is very controlled. Manual Count Sheets — Manual Count Sheets are merely ruled forms that allow you to record the product id, quantity and, if needed, retail of merchandise being counted.
Unlike Count Sheets that pre-determine the merchandise listed, this manual method can be effective for wall to wall counts. When this method is used, count teams should be used: When assigning teams this allows you to pair more experienced people as counters with less experienced people to record the inventory.
This also helps less experienced people learn the inventory. Manual count slips are quite effective when merchandise is controlled by classification as retail prices need to be recorded.
However, when SKUs are used, it is very easy to mis-record or transpose numbers, even when relatively short SKUs are being used digits. The other disadvantage of count slips is the cost of time and potential for errors as slip counts must be manually extended and totaled.
Manual count slips should be pre-numbered so you can verify they were all retrieved after the counting and verification is completed. Portable Inventory Devices — Portable Inventory Scanners can be the most efficient method for taking an inventory, especially when barcodes are used on the merchandise.
They eliminate the need for a two person count team, though all detail counts should still be verified. While portable scanners are most efficient when all inventory is bar-coded and controlled at the class level, some portable scanners can allow for the entry of class level open merchandise items by allowing for the entry of prices.
The major drawback to portable devices is the initial investment in the devices as you need enough to allow for complete counting in a short time period.
However, the long term return justifies the investment in terms of efficiency and accuracy. Costs can also be defrayed by renting units or sharing them with other retailers taking counts at different times.
Keep in mind that a wireless laptop with a scanner on a rolling stand is in itself a portable inventory device.Eliminate Manual Inventory Management Streamline Inventory Audits and Cycle Counts.
Maintain accurate stock counts, reduce errors, and avoid time consuming manual entry of items, location bins, pick orders, and inventory receiving. Sense of Control. A manual system gives a small business owner a greater sense of control. Rather than relying on a computer to indicate when it's time to reorder, the owner can manage the process.
Manual underwriting is a manual process (as opposed to an automated process) of evaluating your ability to repay a loan. Your lender assigns a person to review your application and supporting documents that demonstrate your ability to repay the loan (such as bank statements, pay stubs, and more).
Course announcements. This course will give you a comprehensive overview and in depth knowledge of the inventory management process in SAP. After attending this class you will understand the major business processes, functions and configuration in inventory management.
The most important element to a successful and accurate physical inventory is proper planning and preparation. Written procedures that are understood by all involved is a good first step that will help to assure a well controlled and disciplined count and allow you to focus on an accurate count which will be more efficient and take less time.
The moment the owner opened a spreadsheet and entered the products and quantities that have been delivered, they had a manual inventory system at its most fundamental level. Process inventory assemblies, including custom and process assemblies from a mobile device;.