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Stamp Out Sloppy Inventory Practices in the Distribution Center

Are you losing money to sloppy inventory practices? Clean up your procedures and see profits improve.

(Boonton, NJ, February 8, 2013) — Inventory expert Jon Schriebfeder recently visited the DC of a large, sophisticated retailer, where he found a staggering $27 million in unnecessary inventory.

The discovery served as a reminder that even big companies can lose track of their product or carry too many items.

In this case, says Schrieberfeder, the on-hand quantities in the computer system did not agree with what was actually on the shelf. So there was little choice but to overstock to ensure that orders could be filled.

Stamping out sloppy inventory practices helped get inventory back in line. Among the trouble spots:

  • Providing samples without recording their removal.
  • Substituting product without recording what was removed.
  • Taking items from the dock before the stock was processed.

"Unless you have effective policies and procedures in place," Schriebfeder says, "no software is going to help."

More from Jon Schriebfeder, including how to tie pay to inventory accuracy appears in the February issue of Distribution Center Management.

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About the Distribution Group

For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.

Website: http://www.DistributionGroup.com

 

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