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A Guide to Warehouse Inventory Management: Best Practices, Challenges & Solutions

A GUIDE TO WAREHOUSE INVENTORY
Inventory management in warehouse is a never-ending cycle till the time the business is in operation. As your business expands, so does the amount of effort and money spent on warehouse inventory management. After all, the more orders you receive, the more time you'll need to spend on inventory replenishment and warehouse organization.

Fortunately, there are several methods to enhance the warehouse inventory management process, from more efficient storage to the use of automation and other solutions that can minimize manual labor, human error, and total expenses.

In this article, we will look at some of the key challenges that manufacturers face while managing their warehouse inventory and their solutions. Furthermore, we see the best practices for optimizing your warehouse inventory management that would ultimately enhance the efficiency of business operations.

Warehousing and Inventory Management Best Practices


Appoint a Warehouse Supervisor

Managing an effective warehouse begins with hiring a qualified manager. Your organization should choose a warehouse manager with substantial expertise in operating a warehouse comparable to the one you will be operating. A skilled warehouse manager ensures that everything runs smoothly. He/she must be organized, knowledgeable about warehouse operations and technology, and function as a quarterback for the warehouse's rest of the team.

Your warehouse manager will monitor your staff to ensure things are correctly scanned and cataloged. Additionally, they will frequently engage with your warehouse inventory management software to keep a bird's eye perspective on your goods. Finally, your warehouse manager will be responsible for handling any inconsistencies or challenges that develop, so that they respond dynamically anytime your warehouse staff discovers a problem. Some attributes to look out for in your warehouse manager are: organizational ability, precision, tech-savvy, safety-mindedness, leadership, integrity, and a sense of calm.

Plan the Warehouse Layout

The structural layout of your warehouse will either assist or limit your warehouse workers' ability to promptly pick, load, and send items out in response to a sale or transfer request. By dividing warehouses into zones or slots and numbering aisles and bins, warehouse employees may more easily navigate the storage facility. While not all warehouses are designed the same way, an organized warehouse is necessary for effective operations. The way you plan your warehouse space will depend on the things you store. For example, a warehouse containing huge machinery may have specialized zones, whereas a warehouse storing small retail products will have bins and aisles.

Optimizing your warehouse plan will not only enhance space utilization but also increase warehouse productivity and save you money. Consequently, this helps you reach your company goals and satisfy your customers with on-time deliveries.

Create a Workflow

Maintaining an efficient inventory control warehouse is critical to avoid bottlenecks and out-of-stock situations. In addition, a streamlined inventory workflow can assist you in keeping your buyers satisfied and convert them into loyal customers. So, how would you establish an efficient workflow?

Here are some helpful warehousing and inventory management suggestions:
  • Make an attempt to estimate future sales.
  • Use tools that assess old sales and forecast future sales for you.
  • Set a minimum production quantity for each product. This helps to avoid losing sales and income due to product shortages.
  • Set a maximum stock limit. This assists in avoiding overstocking a product, which can result in considerable losses. 
  • Ensure that products are delivered out in the order in which they were received (first in, first out) to maintain product freshness and reduce shelf life. 
  • Use a warehouse inventory management system. This is the simplest and most effective method of maintaining a steady inventory flow.

Invest in Warehouse Inventory Software

A warehouse management system (WMS) is a software solution designed to automate, optimize, and support the operations and activities of a business warehouse. It can automate and simplify a variety of warehouse management operations and maintain a real-time inventory record of all available goods. When goods arrive and depart the warehouse, your warehouse inventory management system will accurately show all inventories and its whereabouts.

Warehouse inventory management software may be configured to automatically replenish stock when a predefined minimum number of items are reached. The finest software analyzes previous sales data automatically to identify the appropriate minimum number for automated reordering. It also determines the minimum quantities at which each product should be replenished.


Warehouse Inventory Challenges and Solutions


Limited Visibility & Solution

Inventory visibility refers to the ability to view and track inventory in real-time. It also helps gain insight into the exact number of units of each SKU in stock at all locations, along with its location within a warehouse or fulfillment center.
When inventory is difficult to identify or find in your warehouse, it can result in incomplete, inaccurate, or delayed shipments. Receiving and locating the correct stock is essential for smooth running warehouse operations as it helps to maintain a positive customer experience.

Solution: To optimize purchasing and receiving operations, increase accuracy, and eliminate missing goods. Including photos with correct product descriptions in your inventory database can also be helpful. Investing in inventory management software is, once again, the best way to overcome low inventory visibility. These systems are meant to automate the process of inventory management across the supply chain, all from a single dashboard. The adoption of digital and data-driven procedures allows businesses to have a comprehensive view of inventory management in warehouse.

Inventory Depletion & Solution

Unsold goods are considered a loss in inventory. Multiple factors contribute to inventory depletion or shrinkage. Sometimes stocks can become obsolete or out-of-date before being sold. In addition, spoilage, damage, or theft are a few other reasons for inventory loss and can be referred to as a serious supply chain issue. Therefore, it is necessary to identify, track, and measure trouble areas.

Solution: Using a third-party logistics (3PL) or fulfillment service (fulfillment solution) increases security. To reduce inventory shrinkage, they'll take the necessary steps to keep your goods secure. They'll provide you with the technology and reports you need to keep an eye on stock levels.

Using an Old Excel Spreadsheet & Solution

The expansion of a company will be hampered if inventory is managed manually using paper-based techniques. A lack of digitalization and an ineffective inventory management procedure yield dismal outcomes when sales volumes rise and inventory increases. It is time to replace excel spreadsheets with newer technologies like business intelligence and to analyze and track large businesses better.

Solution: Having an inventory management system will make the process more efficient and provide you with real-time data. Businesses utilize various inventory management systems, depending on their type of operations. Manual inventory, periodic inventory, and perpetual inventory are three examples of inventory management approaches. Another option is to use one of the several software programs such as Upserve, Megaventory, and Orderhive for inventory management that are currently available on the market.

Warehouse Space Management & Solution

A warehouse layout that facilitates the simple selection, packaging, and shipping of orders is a sign of efficient warehouse space management. Designing a functional warehouse layout is critical since it directly influences the efficiency and productivity of your warehouse. A well-designed warehouse layout enables easy access to stored goods, saves travel time, and increases order fulfillment rates.

Solution: Optimize storage space and inventory flow by utilizing inventory management systems that include warehouse management features. Automate order picking, packaging, and shipping operations by categorizing inventory storage by shelf, bin, and compartment.

Communication Difficulties & Solution

Collaboration and communication are critical in the management of warehouse. Lack of communication in a warehouse can result in disorganized operations, resulting in errors and inefficient processes. In practice, this might imply that stock is misplaced or delayed, resulting in a negative customer experience.

Solution: Warehouse workers should be equipped with phones and radios for one-on-one communication. Mobile devices are the foundation of portable communication, which is critical for warehouse employees who are always on the move. Supervisors and managers must have a PA system, also known as a public address system, to make announcements in an emergency or when loading and unloading goods.

Another option to simplify warehouse operations is to distribute wearable GPS devices to your employees. Using cloud-based software to manage inventory also provides the best solution for checking stock and communicating data across departments.

Final Words

Warehousing and inventory management affect every step of your e-commerce supply chain, from receiving and storing goods to fulfilling and shipping orders. Poor warehouse inventory management may lead to higher logistics costs, dissatisfied warehouse personnel, more picking and packing errors, delayed shipments, and disappointed customers. However, with some of the best practices mentioned above, you may improve your warehouse inventory management. You can take advantage of the solutions to most of the key challenges listed above.

FAQ


What are the four ways to control inventory?

The four key ways of controlling inventory are as follows: just-in-time delivery, downloading inventory software, stock control, and lowering carrying costs.

How is inventory management different from warehouse management?

The primary difference between the two systems is the human component. While inventory management is concerned exclusively with merchandise or stock, warehouse management includes the administration of workers as well as shipping or shipping professionals who work in a warehouse setting.

What are the four inventory management types?

Primarily, inventory management is grouped into four types:
  • Raw materials
  • Works-in-progress
  • Maintenance, repair, and operations (MRO) goods
  • Finished goods

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Genzink Steel

Genzink Steel is a manufacturer of superior components and assemblies. Predominantly, our core competencies lay in fabricated metal components and welded assemblies.

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American Battery Solutions Signs Supply Agreement with NFI Group

American Battery Solutions | October 09, 2023

American Battery Solutions (ABS) has signed a multi-year contract with NFI Group Inc. to provide custom battery packs for New Flyer's battery-electric transit buses, providing clean power. ABS will manufacture the batteries at its plant in Springboro, OH, with the engineering and development center located in Lake Orion, MI. It will supply Li-Ion batteries for NFI's 35-, 40-, and 60-foot battery-electric transit buses. The production is set to begin in the third quarter of 2023, with deliveries starting in the first quarter of 2024. According to CALSTART's annual ‘Zeroing in on ZEBs’ report, the market for electric buses in North America has passed the ‘tipping point,’ with more than 5,480 zero-emission transit buses on the road by the end of 2022. NFI anticipates that 40% of its 2025 production will consist of zero-emission buses, and is spearheading the North American transition to zero-emission public transportation. Paul Soubry, President and CEO at NFI, stated that the demand for battery-electric buses was rising. NFI was at the forefront of driving the transition to zero-emission public transportation in North America. He mentioned that their partnership with ABS would grant NFI the necessary capacity, flexibility, and resilience required as they increased production at their facilities throughout North America. Soubry noted that ABS had made substantial investments in their pack assembly and battery technology, offering NFI cutting-edge solutions within the industry. He expressed anticipation for collaborating with ABS to advance battery technology within the public transportation sector. The scalable custom-designed pack solution is based on the ABS ProLiance Intelligent Battery SeriesTM architecture. It fits within NFI's existing battery enclosure design, providing an alternate supply source for NFI's battery-electric bus contracts and opening the door for potential technology enhancements. ABS has secured the cell supply through strategic alliances with world-class cell manufacturers. These partnerships have ratified long-term supply agreements that guarantee cell supply through the end of the decade, supporting ABS's NFI ramp and other customer programs. NFI's turnkey smart charging services have provided over 410 chargers to NFI's battery and fuel cell-electric buses and coaches, which have travelled over 120 million electric service kilometers. With electric vehicles in over 140 cities in six countries, NFI leads zero-emission mobility. About American Battery Solutions American Battery Solutions (ABS) specializes in designing and producing modular battery solutions, primarily serving the transportation, industrial, and commercial sectors across North America and Europe. The ABS team comprises renowned experts in battery systems, boasting extensive experience in advanced battery systems' design, development, and high-volume manufacturing. They have channeled their expertise into the transportation segments, focusing on module production, pack assembly, and seamless customer integration. Operating from a substantial 120,000 sq. ft. technical center in Michigan and 170,000 sq. ft. state-of-the-art battery manufacturing facility in Ohio, ABS has a robust presence.

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Additive Manufacturing

Nexa3D Plans to Acquire Essentium for Broadened Capabilities

Nexa3D | November 07, 2023

Nexa3D, an ultrafast 3D printing leader, has taken a substantial step in staking its leader position in the industrial additive manufacturing space by signing a LOI to acquire Essentium, a manufacturer of HSE 3D printers and materials, adopted for high requirement, precision applications in aerospace, defense, and military. With this acquisition, Nexa3D will add high-speed extrusion (HSE) to its current product portfolio. The acquisition would broaden capabilities, diversify revenues, and expand addressable markets for the fast-growing 3D printing company. Avi Reichental, Co-founder, Chairman, and CEO of Nexa3D, stated that they are looking forward to welcoming the Essentium team to Nexa3D’s family. The acquisition will be a testament to their unwavering commitment to pushing the boundaries of 3D printing technology. He continued that by joining forces with Essentium, they aim to create synergies to deliver unmatched value to their customers. Together, they will drive ultrafast additive manufacturing innovation and provide even more powerful solutions for manufacturers seeking to achieve their production goals. Essentium, known for its variety of materials portfolio, true independent dual extruders (IDEX) and award-winning high-speed extrusion 3D printers, has provided solutions for complex polymer production applications 5 to 15 times quicker than other competing extrusion technologies. Essentium’s commitment to reliability and innovation has made it a go-to choice for manufacturers worldwide. Nexa3D has rapidly emerged as a leader in the 3D printing space, delivering excellent production solutions for businesses across various sectors. Best known for its ultrafast 3D printers, from desktops to the factory floor, its technology has redefined the possibilities of 3D printing production, enabling unparalleled productivity, material flexibility, and accuracy. Adopted by around 1200 customers all over the world, its printers have become the go-to solution for high-throughput production applications. This acquisition is expected to close by the end of this year or as soon as practicable afterward. Both Essentium and Nexa3D are committed to ensure a smooth transition and for maintaining uninterrupted services to existing and prospective customers. About Nexa3D Nexa3D is committed to the sustainable digitization of supply chains, driven by its relentless pursuit of advancing additive manufacturing. The company engineers ultrafast polymer 3D printers, capable of delivering remarkable productivity gains, up to 20 times greater, to professionals and businesses of varying sizes. Innovative partnerships with renowned material suppliers, combined with an open materials platform, serve as the catalyst for unlocking the full potential of additively manufactured polymers, particularly in volume production. Nexa3D leverages automated software tools, employing process interplay algorithms that optimize the production cycle.

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Manufacturing Technology

Stratasys’ Latest Printer Offers Applications with Improved Parameters

Stratasys | November 06, 2023

Stratasys introduces the F3300 3D printer, offering high speed, uptime, and quality for targeting manufacturing industries with high demands. The F3300 empowers manufacturers to accelerate product development and address global supply chain challenges, delivering a strong return on investment. The latest printer will be unveiled during a live event hosted by the company on November 7. Stratasys, a leader in additive manufacturing and polymer 3D printing solutions will showcase its latest F3300 Fused Deposition Modeling (FDM) 3D printer at the Formnext conference, held in Germany from November 7 to 10. This printer offers exceptional value to manufacturing customers with reduced labor, higher part quality and yield, as well as maximized uptime. The solutions provided by Stratasys provide customers a competitive edge at every stage of the product value chain. These solutions include smart and networked 3D printers, polymer materials, a software ecosystem, and components on demand. The most successful companies in the world go to Stratasys to improve health care, provide agility to manufacturing and supply chains, and alter product design. Key Advancements Faster Print Speeds: Increased gantry speeds, speedier extrusion rates, and autocalibration. Higher Part Quality and Yields: Up to 25% improvement in accuracy and repeatability with autocalibration. Maximized Uptime: Machine monitoring, extruder redundancy, and an operator-friendly interface design. Cost Savings: Offers 25-45% savings compared to other Stratasys FDM solutions. Rich Garrity, Stratasys' Chief Industrial Business Unit Officer, remarked that the next-generation AM system empowers customers to scale production and reduce the need to compromise between traditional and additive manufacturing solutions. He added that the conventional capacity limitations, rising global supply chain challenges, and application complexity are incredibly stressful for manufacturing, and F3300 will empower buyers to accelerate product development, allowing faster innovation and maximized ROI. F3300 printer expands the range of production capabilities and provides performance-oriented manufacturers with the most expansive variety of best-in-class FDM printers. The F3300 is the latest addition to the FDM family, which includes the F900, F770, F450mc, and the F123 series. F3300 complements Stratasys’ F900, known for its dependability, use of high-performance materials, and large capacity. Built for manufacturing by the inventors, the F3300 will be the most sophisticated industrial 3D printer in the market. Its advanced features and design will transform how additive manufacturing is used in demanding industries like automotive, government/military, aerospace and service bureaus. The F3300 is expected to be available for shipment from 2024. Stratasys will host a live event on November 7 at 5:30 p.m. CET to uncover the F3300.

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Procurement & Supply Chain

American Battery Solutions Signs Supply Agreement with NFI Group

American Battery Solutions | October 09, 2023

American Battery Solutions (ABS) has signed a multi-year contract with NFI Group Inc. to provide custom battery packs for New Flyer's battery-electric transit buses, providing clean power. ABS will manufacture the batteries at its plant in Springboro, OH, with the engineering and development center located in Lake Orion, MI. It will supply Li-Ion batteries for NFI's 35-, 40-, and 60-foot battery-electric transit buses. The production is set to begin in the third quarter of 2023, with deliveries starting in the first quarter of 2024. According to CALSTART's annual ‘Zeroing in on ZEBs’ report, the market for electric buses in North America has passed the ‘tipping point,’ with more than 5,480 zero-emission transit buses on the road by the end of 2022. NFI anticipates that 40% of its 2025 production will consist of zero-emission buses, and is spearheading the North American transition to zero-emission public transportation. Paul Soubry, President and CEO at NFI, stated that the demand for battery-electric buses was rising. NFI was at the forefront of driving the transition to zero-emission public transportation in North America. He mentioned that their partnership with ABS would grant NFI the necessary capacity, flexibility, and resilience required as they increased production at their facilities throughout North America. Soubry noted that ABS had made substantial investments in their pack assembly and battery technology, offering NFI cutting-edge solutions within the industry. He expressed anticipation for collaborating with ABS to advance battery technology within the public transportation sector. The scalable custom-designed pack solution is based on the ABS ProLiance Intelligent Battery SeriesTM architecture. It fits within NFI's existing battery enclosure design, providing an alternate supply source for NFI's battery-electric bus contracts and opening the door for potential technology enhancements. ABS has secured the cell supply through strategic alliances with world-class cell manufacturers. These partnerships have ratified long-term supply agreements that guarantee cell supply through the end of the decade, supporting ABS's NFI ramp and other customer programs. NFI's turnkey smart charging services have provided over 410 chargers to NFI's battery and fuel cell-electric buses and coaches, which have travelled over 120 million electric service kilometers. With electric vehicles in over 140 cities in six countries, NFI leads zero-emission mobility. About American Battery Solutions American Battery Solutions (ABS) specializes in designing and producing modular battery solutions, primarily serving the transportation, industrial, and commercial sectors across North America and Europe. The ABS team comprises renowned experts in battery systems, boasting extensive experience in advanced battery systems' design, development, and high-volume manufacturing. They have channeled their expertise into the transportation segments, focusing on module production, pack assembly, and seamless customer integration. Operating from a substantial 120,000 sq. ft. technical center in Michigan and 170,000 sq. ft. state-of-the-art battery manufacturing facility in Ohio, ABS has a robust presence.

Read More

Additive Manufacturing

Nexa3D Plans to Acquire Essentium for Broadened Capabilities

Nexa3D | November 07, 2023

Nexa3D, an ultrafast 3D printing leader, has taken a substantial step in staking its leader position in the industrial additive manufacturing space by signing a LOI to acquire Essentium, a manufacturer of HSE 3D printers and materials, adopted for high requirement, precision applications in aerospace, defense, and military. With this acquisition, Nexa3D will add high-speed extrusion (HSE) to its current product portfolio. The acquisition would broaden capabilities, diversify revenues, and expand addressable markets for the fast-growing 3D printing company. Avi Reichental, Co-founder, Chairman, and CEO of Nexa3D, stated that they are looking forward to welcoming the Essentium team to Nexa3D’s family. The acquisition will be a testament to their unwavering commitment to pushing the boundaries of 3D printing technology. He continued that by joining forces with Essentium, they aim to create synergies to deliver unmatched value to their customers. Together, they will drive ultrafast additive manufacturing innovation and provide even more powerful solutions for manufacturers seeking to achieve their production goals. Essentium, known for its variety of materials portfolio, true independent dual extruders (IDEX) and award-winning high-speed extrusion 3D printers, has provided solutions for complex polymer production applications 5 to 15 times quicker than other competing extrusion technologies. Essentium’s commitment to reliability and innovation has made it a go-to choice for manufacturers worldwide. Nexa3D has rapidly emerged as a leader in the 3D printing space, delivering excellent production solutions for businesses across various sectors. Best known for its ultrafast 3D printers, from desktops to the factory floor, its technology has redefined the possibilities of 3D printing production, enabling unparalleled productivity, material flexibility, and accuracy. Adopted by around 1200 customers all over the world, its printers have become the go-to solution for high-throughput production applications. This acquisition is expected to close by the end of this year or as soon as practicable afterward. Both Essentium and Nexa3D are committed to ensure a smooth transition and for maintaining uninterrupted services to existing and prospective customers. About Nexa3D Nexa3D is committed to the sustainable digitization of supply chains, driven by its relentless pursuit of advancing additive manufacturing. The company engineers ultrafast polymer 3D printers, capable of delivering remarkable productivity gains, up to 20 times greater, to professionals and businesses of varying sizes. Innovative partnerships with renowned material suppliers, combined with an open materials platform, serve as the catalyst for unlocking the full potential of additively manufactured polymers, particularly in volume production. Nexa3D leverages automated software tools, employing process interplay algorithms that optimize the production cycle.

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