Inventory Management...to the rescue!

Inventory management represents one of the challenges of a constantly evolving market and not necessarily in the right direction of evolution: in the context of rising prices for most raw and processed materials, as well as fuel prices, it is absolutely normal to want to avoid losses and variations in the stocks of our companies. The struggle that companies are currently waging to maintain hard-won positions in the markets in which they operate is downright dramatic and, therefore, at warehouses’ levels, we must help the businesses in which we operate.

How can we help? First, by stabilizing materials, by reducing variations, eliminating minuses and pluses. Normally, we would say that we should not accept a fixed measurable indicator, which indicates "zero inventory changes"; It is very difficult to achieve such an objective without investment and it would be appropriate to negotiate a measurable indicator related to the value of stocks - for example "inventory change <0.01% of total value of stocks", but in this economic context we must try to reach zero, even without investment.

Another way to help the company in the direction of inventory management is the correct measurement and sizing of resources used for handling and transporting materials in the warehouse: it is good to have at least one spare forklift but in the current situation we must behave maturely and understand that any additional expense may block a business.

The standardization of processes by regulating activities in work procedures and instructions is helpful by reducing the training duration of new staff, by respecting the safe way of working that reduces losses from stock variations and errors.

The implementation of various LEAN instruments, such as 5 (6) S, is of significant help in reducing waiting times and reducing losses generated by unnecessary movements, increasing the overall efficiency of warehouses.