The Fast Close, Part 8 (#23)

In this episode, we discuss how to improve inventory record accuracy, which can have a massively positive impact on the speed of the close. However, the improving inventory record accuracy is a prolonged process that will undoubtedly take months, and consume the time of the best warehouse workers. Key points discussed are:

  • Install inventory tracking software that records inventory locations.

  • Create unique rack locations in the warehouse.

  • Number the racks, as well as the bins within the racks.

  • Lock down the warehouse with fencing.

  • Consolidate parts into a single location, or as few locations as possible.

  • Assign part numbers to all inventory items.

  • Verify the unit of measure for every inventory item.

  • Part the parts into boxes or bags, and record the amount on each box or bag (facilitates counting).

  • Count everything and enter it into the tracking software, including inventory locations.

  • Conduct an ongoing series of cycle counts and review the reasons for any errors found.

  • Do spot counts, calculate inventory accuracy, and post the results in the warehouse.

  • Pay cash bonuses to the warehouse staff for high levels of inventory accuracy.

Related Courses

Closing the Books
The Soft Close
The Year-end Close