In this podcast episode, we discuss the actions you need to take in order to achieve a high level of inventory record accuracy. Key points made are:
Inventory tracking software must track inventory by bin location, and update the inventory records immediately when changes are made.
The rack layout needs room for forklifts, a slow-moving inventory area in the back, and a small parts area.
The rack location code should begin with a letter for the aisle location, then a number for the specific rack in the aisle, and then a letter for the level designation within each rack.
Rack numbers should offset each other on each side of the aisle, so that pickers can pick from both sides as they walk down an aisle.
Both the bar code and alphanumeric rack location code should be printed on each rack label.
Lock down the warehouse with a fence and gate to eliminate intrusions.
Consolidate the same parts in one place.
Assign part numbers to everything in the warehouse.
Verify that the unit of measure assigned to each part is correct.
Pack the parts in containers, seal the containers, and label them with the contents.
Conduct an initial count and load the results into the inventory database.
Audit inventory record accuracy every week, post the results by employee, and pay bonuses for the best results.
Review the warehouse manager based on record accuracy performance.
Expect to take at least six months to reach 98% inventory record accuracy.