Misplaced Inventory

• If inventory arriving at your warehouse is manually entered into the computer, it will result in a lag time before your sales department knows it's in stock. There's also a good chance goods will be misplaced due to keying errors.
• When consolidating items on shelves, inventory often gets misplaced because the computer wasn't updated. This results in unnecessary replenishments.
• At physical inventory time when misplaced inventory is found, this "lost" inventory often becomes excess inventory that might never be sold.
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Incorrect Shipments

• When incorrect products or quantities are shipped, it creates a "domino effect" of business disruptions.
• Returned products carry double freight bills and the invoices will not be paid until credits and adjustments are issued.
• If the shipped inventory is replenished, often it might become excess inventory.
• At physical inventory time when the lost inventory is found, this "lost" inventory often becomes excess inventory that may never be sold.
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Buying Based on "Guesswork"

• Not having accurate computer information will result in purchasing the wrong products or quantities.
• The unsold inventory will collect dust on the shelves in the warehouse.
• Just because a product was initially a fast moving item does not necessarily mean it will be a big seller once it reaches maturity.
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Dani Kaplan, president of SMC Data System Inc., www.smcdata.com can be reached at (917) 647-2466. He works with corporate executives to improve purchasing, increase warehouse and distribution efficiencies and implement solutions that result in substantial savings and productivity improvements.

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