Multiple Units of Measure in Inventory Management
Multiple units of measure refer to the practice of measuring and tracking inventory using different units of measure, such as weight, volume, length, or quantity. For example, a business might purchase raw materials in pounds, store them in inventory by volume, and sell them by the unit. Managing inventory with multiple units of measure can […]
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Serial Number Tracking: A Comprehensive Guide for Small Business Owners
Serial number tracking is the practice of assigning and tracking a unique serial number to individual products or components throughout their entire lifecycle. This involves using a specific identification code to track and monitor products as they move through various stages of production, distribution, and sale until they reach the end customer. The primary purpose […]
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Lot Tracking: Effective Supply Chain Management
Lot tracking is a process of tracing the movement of a specific batch or lot of products or materials throughout the supply chain. It involves assigning a unique identification code to each lot of items and recording its details, such as production date, expiration date, and location. In today’s fast-paced, highly regulated world of manufacturing and […]
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Inventory Shrinkage: Understanding, Managing, and Preventing Loss in Your Business
Inventory shrinkage occurs when the physical count of inventory is less than what is recorded in the accounting system. This discrepancy can be due to various factors, including theft, damage, errors in record-keeping, or supplier fraud. According to NRF’s Retail Security Survey 2022, “Retail shrink is an almost $100 billion problem.“ Inventory shrinkage is a […]
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The Impact of Inventory Management on Customer Satisfaction
Inventory management refers to the process of monitoring and controlling a company’s inventory levels, including the raw materials, work-in-progress, and finished goods. It involves tracking inventory levels, determining the optimal inventory levels, and managing the ordering and storage of inventory to meet customer demands. Effective inventory management is significant for businesses because it ensures that […]
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Inventory Audits: 9 Essential Procedures for Accuracy, Efficiency, and Compliance
An inventory audit is a systematic process of cross-checking a business’s financial records with its physical inventory and records. This process helps ensure that the company’s inventory levels are accurate and consistent with its financial statements. Inventory audits are critical for businesses that deal with physical products, as they provide essential insights into inventory management […]
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Conquer Inventory Accuracy: 12 Cycle Counting Methods & Best Practices
An inventory cycle count is a process of regularly verifying the physical quantity of a subset of your inventory items against the recorded amounts in your inventory management system. It’s essentially a mini-inventory audit that’s conducted on a continuous, planned basis, instead of just once a year like a traditional full inventory count. Here’s how […]
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Warehouse Management – Definition, Operations & Best Practices
Warehouse management refers to the processes and systems used to control and coordinate the storage, handling, and distribution of goods within a warehouse. The goal of warehouse management is to ensure that the right products are stored in the right place at the right time, and that they are readily available for order fulfillment, while […]
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Inventory & Stock Reconciliation – Importance, Examples, Challenges & Best Practices
Inventory reconciliation or stock reconciliation is the process of comparing and verifying the accuracy of a company’s physical inventory with the inventory records in its accounting system. The purpose of this process is to ensure that the company’s financial records accurately reflect the actual physical inventory it has on hand, and to identify and correct […]
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Order Fulfillment- Steps, Challenges & How to Overcome
Order fulfillment refers to the process of receiving, processing, and delivering a customer’s order. It encompasses a variety of activities, including inventory management, picking and packing of products, shipping and transportation, and customer service. The goal of order fulfillment is to ensure that the customer receives their order in a timely, accurate, and cost-effective manner. […]
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