3 Ways Better Inventory Control Can Improve Your Warehouse

1. Improve inventory accuracy

Accurate inventory numbers are important throughout the business.

Sales needs accurate stock information before promising an order. Purchasing needs accurate numbers before placing an order. The warehouse needs to know what is available and where it is located.

When inventory records are wrong, the effects can extend beyond the warehouse.

For example, if an item is showing as out of stock when it is actually sitting on the receiving dock, a customer may be told that the item is unavailable. That can result in a lost sale.

Reduce shipping errors

Shipping the wrong item creates work for several people.

The warehouse has to find and ship the correct item. Someone has to arrange the return. Customer service may need to contact the customer. Inventory records may also need to be corrected.

Scanning can help prevent these errors before an order leaves the warehouse.

Start with barcodes

Without barcode scanning, warehouse employees often write down item information and enter it into the accounting or ERP system later.

Every time information is written down and entered again, there is an opportunity for an error.

With barcode scanning, the item is identified by its barcode. If a picker scans the wrong product, the system can identify the problem before the shipment is completed.

Update inventory in real time

Some scanning systems collect transactions on a handheld device and synchronize them with the ERP later.

This can work, but it means the ERP may not have the latest information while the warehouse is working.

A real-time system validates transactions and updates the ERP as they happen. This gives sales, purchasing, and warehouse staff access to current inventory information.

Serial and lot tracking

Serial and lot numbers make accuracy even more important.

Writing down a series of serial numbers creates another opportunity for an error. If a number is recorded incorrectly, it can be difficult to determine what happened after the item has shipped.

Scanning serial and lot barcodes records the numbers as part of the transaction and can validate them against the order.

2. Simplify warehouse processes

Paper-based processes often require information to move between the warehouse and office.

An employee records a transaction on paper. Someone else enters it into the ERP. Another employee may need to check the paperwork if something doesn’t match.

A scanning system can give warehouse employees a consistent process for receiving, picking, shipping, counting, and moving inventory.

For example, one of our customers requires every warehouse employee to carry a scanner and scan items during every inventory transaction. This gives the warehouse a consistent process and reduces the amount of paperwork moving between the warehouse and office.

When transactions are entered from the warehouse floor, office staff don’t have to enter the same information again.

Direct ERP integration

The way an inventory system connects to your ERP is important.

Some systems maintain a separate inventory database and synchronize information with the ERP. This can create another set of data that needs to be maintained and reconciled.

With direct ERP integration, transactions are posted directly into the ERP. Warehouse employees can work with the inventory system while the ERP remains the central source of inventory information.

This also means office staff don’t have to learn a completely separate inventory database.

3. Reduce manual work

Manual inventory processes take time.

Employees write down item numbers, move paperwork between the warehouse and office, and enter the same information into the ERP. These tasks don’t add much value, but they still take time.

Barcode scanning moves the data entry to the point where the transaction happens.

One of our customers measured the results after implementing barcode scanning:

• 2–3 hours of work saved each day
• 50% less time spent shipping orders
• 50% less clerical work for the employee who previously entered shipments and invoices

The time savings allowed that employee to spend more time on other work.

Scanning can also make individual warehouse tasks faster. When combined with real-time ERP integration, it reduces the amount of information that needs to be entered more than once.

What to look for in an inventory management system

There are several things to consider when evaluating an inventory system.

Pay for the functions you need

Some systems are sold as fixed packages with features that you may not need.

A modular system allows you to start with the functions that are important to your business and add others later.

Make sure it fits your processes

Warehouses don’t all work the same way.

Your system should support the way your business receives, stores, picks, ships, and counts inventory. If your processes are different from the standard workflow, find out how much customization is possible.

Look for real-time ERP integration

Check how transactions move between the warehouse system and your ERP.

A system that validates and posts transactions in real time is different from one that collects transactions and synchronizes them later.

It’s also worth understanding whether the inventory system uses a separate database or works directly with your ERP.

Choose hardware that fits your warehouse

Modern Android mobile computers can provide a practical option for warehouse scanning.

If your warehouse already has reliable Wi-Fi coverage, you may not need additional network infrastructure. The environment should still be considered when choosing hardware, particularly in freezers, outdoor areas, or other demanding conditions.

Consider barcodes before RFID

RFID can be useful for certain applications, but barcodes are still a practical option for many small and mid-sized warehouses.

Barcode labels are inexpensive and can be printed using standard label printers. Most warehouse employees can also learn the scanning process quickly.

Keep implementation practical

Implementation time varies between systems.

Ask what is required to get the system running, how much configuration is needed, and what training your employees will need.

A straightforward implementation can make it easier for your team to start using the system and begin seeing the benefits.

How ACCU-DART works

ACCU-DART is a barcode scanning and inventory management system that integrates directly with Sage 300 and AccountMate.

Warehouse employees use scanners to receive, pick, ship, count, and move inventory. Transactions are processed directly through the ERP, so inventory information stays up to date.

ACCU-DART is:

• Modular — use the functions you need and add others later
• Customizable — adapt the system to your warehouse processes
• Directly integrated — no separate inventory database to reconcile
• Available on Android devices — use modern mobile computers and scanners

“In today’s economy we have to be better than before, with less people, fewer customers and tighter budgets, just to stay in business. Decisions should only be made based on accurate and timely information. Sage and Accu-Dart allow me these luxuries.”

— Highfield Holdings Inc.

Learn more about ACCU-DART or contact your ACCU-DART partner to discuss your inventory requirements.