With so many systems and procedures for a business to use, there is one that undoubtedly can help you be more efficient in all your daily activities. An inventory control system might sound complex, but in reality, it will make your daily transactions run smoother and help you provide products to your customers in a timelier manner. You can’t sell what you don’t have, and an investment in inventory management just makes sense.
Jamie Miller, BioZyme Director of Operations Support, said there are three primary benefits for a business to have an inventory system in place.
First, the inventory system will allow the business to visualize its actual inventory. With stacks of feed or supplement bags that may be similar in colors, it can be challenging to keep track of what is actually in stock, especially with multiple employees selling current inventory or unloading new inventory. A centralized computer system helps manage the inventory so you can sell your older stock first, making room for new merchandise that has a longer shelf life.
Miller recommends using the FIFO (first in, first out) system as compared to the LIFO (last in, first out) system to keep inventory its freshest.
The second benefit Miller suggests is warehouse management.
“Depending on the sophistication of your software, these inventory control systems also serve as a great way to know where each product is located in your warehouse so you can go directly to the bin or area to streamline order processing and delivery,” Miller said.
Whether you have one warehouse or multiple warehouses, knowing where products are located by product or lot number will increase the efficiency of filling orders.
Traceability is perhaps the most important aspect to an inventory system, according to Miller. Being part of the Safe Feed, Safe Food certification, BioZyme’s inventory tracking system allows it to track all ingredients from where they came from through the products they are put into and to what dealer they are sold, which is important for any recall that might happen.
“Traceability is the biggest thing of importance in animal livestock nutrition inventory systems,” Miller said. “Even the simplest inventory software systems typically have a recall report to help with traceability, which would be very important in the case of a feed mill.”
Inventory tracking isn’t as simple as counting bags or tubs of products or chalking up tally marks on a legal pad. Increasing efficiencies with product deliveries, mapping your warehouse and tracking products are all important to the success of your business. Don’t let the investment in the software scare you off, because you will see long-term rewards.