Inventory Control Challenges ("The Cost of Doing Business")

An unautomated warehouse causes problems, but there are solutions...

by Dani Kaplan

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.
  • Click for solutions for Misplaced Inventory

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.
  • Click for solutions to Incorrect Shipments

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.
  • Click for solutions to Buying Based on "Guesswork"

Dani Kaplan, president of SMC Data System Inc., 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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"Dani has acted as our consultant and his firm’s performance has been excellent. Their experiences enables us to analyze our business issues and resolve them quickly. I’ll be happy to recommend them to anybody considering using their services."
Jim DeLalla
Vice President & Treasurer,
Jean Patou Inc.