Labelling Solutions How to achieve perfect
physical inventory in 10 easy steps
P
By Brady Stevens, senior consultant at Global Shop Solutions. MONITOR COUNTS
hysical inventory can often be referred to as the necessary evil of manufacturing. It is critical to perform this accurately in order to be profitable and deliver a quality part on-time every time. Over the years we have developed 10 steps to achieve perfect physical inventory.
PREPARE AND PLAN AHEAD Taking physical inventory can be an unwelcoming and daunting task requiring you to be prepared with adequate resources. Any lack of preparation or employee support may lead to a failed physical inventory. I recommend an ‘all hands on deck’ approach that will ensure you have enough people available to count. It is much easier and a bigger morale booster to send someone home than it is to call someone in last minute. We recommend setting expectations early and discourage employees from taking personal time off on the day of the “big count.” Small morale and team building boosters like ordering in lunch help keep the team focused on the task at hand. Create “Inventory Teams” and pair two employees per team. Pairing up as teams allows one person to scan and input the counts as the second person actually does the counting of the parts. Creating these two-person teams is also a way to build comradery between employees, especially those that may not have the opportunity to spend time together.
IDENTIFY YOUR INVENTORY Keeping your inventory labelled is an important step in controlling your inventory between physical inventories.
It is important to make sure the practice of labelling your inventory is not just done when you prepare/take a physical inventory. Labelling ensures that employees can identify the correct inventory when consuming it into jobs or shipping to customers. Barcode labelling in Global Shop Solutions helps make the job manageable.
Global Shop Solutions has a built in integration with Codesoft barcode labels that can be printed as transactions are being performed in the system as well as a partnership with EMS Barcode for your hardware. System-generated inventory labels eliminate hard to read, hand-written labels. The barcodes enhance the labeling experience by allowing mobile transactions to be performed in real time on the shop floor or the warehouse where inventory is stocked.
FREEZE TRANSACTIONS AND INVENTORY MOVEMENT Taking physical inventory is a challenging process in itself, but chasing a moving target must be avoided. Inventory movements need to be frozen during the counting process with no exceptions.
MINIMISE DOWNTIME
Long gone are the days where you had to print a count sheet and handwrite down the counts, collect inventory tags, and input the counts into the system.
When it comes to taking a physical inventory with Global Shop Solutions ERP software, count teams can quickly and easily record their counts wirelessly by scanning barcode labels and recording electronic counts direct into the Global Shop Solutions physical inventory system through our GS Mobile software. This process can drastically reduce the physical inventory count time from start to finish by at least half, as well as improve the accuracy of the counting process.
ACCURACY IS IMPORTANT
What is the point of a physical inventory if the counts are not correct or can’t be trusted? Inventory accuracy starts with ensuring physical counts are taken with confidence. Barcode labels and scanning barcodes help ensure the right counts are recorded for the right part. Similar parts are correctly identified and recorded in the count.
The management team should be available to help with any inquiries on the floor as they arise. They should also make sure the integrity of the counts are maintained. It doesn’t hurt to perform some spot checks on how the teams are counting to ensure accuracy. When it comes to company audits, spot checks are normal. Prepare yourselves by performing this activity.
IDENTIFY WHAT HAS BEEN COUNTED Implement a method to mark off or flag an area that has been counted. There is no right or wrong way of doing this. For example, some companies will tape off sections with brightly coloured tape.
With GS Mobile Physical Inventory, you can print physical inventory labels as you scan and count the inventory. With a handheld scanner and wireless hip printer, counting and tagging counts are made simplified and efficient.
REVIEW COUNT VARIANCES CLOSELY Using the GS Mobile physical inventory process, the physical inventory count variances can be reviewed from a physical inventory variance report generated from the system. This report can be printed at any time during the count. Material variances should be identified and discrepancies double-checked.
COMMIT COUNTS
Once the count is verified and confirmed accurate, commit the count changes to the inventory system.
OPEN FOR BUSINESS
Now everyone can get back to making and shipping parts with accurate inventory numbers.
With GS Mobile physical inventory and Codesoft barcode inventory labels, physical inventory does not have to be a painful process but yet a welcomed bi-annual or annual event.
Xwww.globalshopsolutions.com
24
October 2022
www.convertermag.com
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