The process of guaranteeing the availability of resources like inputs, products, equipment, etc. is known as inventory management. In other words, all of the supplies that help keep your company’s operations going smoothly. We will show you the seven most common mistakes to avoid when managing inventories in this article today.

That’s why you need to keep a close eye on your supply. You risk losing control over your possessions if you don’t. Imagine trying to sell a product and being unable to locate its precise location in the system.

Read also: Fleet Management 101: What It Is and How to Implement It

7 Inventory Management Mistakes You Must Avoid

We have outlined the top 7 mistakes you should never make when handling the inventory of your business in order to prevent issues similar to this one as well as many more.

1. Analyze manually collected data

There is a significant risk involved in analyzing data obtained through spreadsheets that are filled out by hand, particularly when it comes to potential errors in data entry. You won’t even be able to recognize the problem if an asset that entered inventory has the code 300452 but the employee reported it as 300453.

 

Remember that straightforward issues like these are particularly harmful to big inventories. Using a data collector is an excellent substitute since it is considerably more flexible and effective than the manual collecting procedure.

2. Not controlling data in real-time

The inventory balancing might take days or even weeks to complete in many businesses because it is done manually. The time and effort required for this activity could be used for other activities.

 

Real-time data analysis starts when technology like the data collector mentioned earlier and RFID, which uses radio signals to identify assets, take the role of pens and paper spreadsheets.

3. Using non-integrated systems

Using several systems for distinct tasks slows down and complicates inventory management. Not only data must be extracted from several sites, but it can also be challenging to cross between them because the criteria may change.

Your asset data should ideally be linked into a single system. By doing this, you may simplify administration and boost staff efficiency by analyzing and cross-referencing data from a single platform.

4. Do not cross-check system data

Assume for a moment that you do not plan to use technology to integrate your whole inventory. To have a strategic picture of your assets, however, you must cross-reference data as precisely as possible from several platforms.

As we will discuss in the next point, you won’t be able to get more precise insights, go further into your analyses, or spot opportunities and problems without crossing information, which is tedious to perform by hand.

5. Identify problems and opportunities slowly

Two major shortcomings we noted previously, manual data collection and non-integration of various systems, are the main causes of the slow identification of problems and opportunities in inventory.

Never forget that streamlining your operations ought to be the primary goal of effective inventory management. Consequently, you might need to think about utilizing technology to expedite your task if you are unable to recognize issues and opportunities promptly and proactively.

6. Not using charts in inventory management

Spreadsheets with a ton of columns and data can occasionally fail to convey the current state of your assets. As a result, graphs (bar, line, pie, etc.)—must be used to support all inventory management.

They facilitate decision-making, simplify problem identification, and increase the visual nature of analysis. Graphs, for instance, can be used to compare data from multiple integrated systems.

7. Avoid using management technologies

Technologies for inventory management remove all of these mistakes. You and your staff will be more productive and motivated once you understand the benefits of adopting technology, even if you are now in the habit of doing everything by hand.

It would be impossible to integrate systems, gather data in real-time, and spot possibilities and problems without the aid of commercially accessible technology like RFID readers, data collectors, and management platforms.

At 3PL Links, we specialize in avoiding the common inventory management mistakes outlined above. By utilizing advanced technologies and integrated systems, we ensure efficient, real-time management of your assets. Our team is dedicated to optimizing your supply chain, so you can focus on growing your business without the worry of inventory issues. Let us handle the complexities while you stay ahead in the market. Feel free to contact us for more information.