The commemorative dates are the most important and expected dates for commerce (physical and electronic), therefore, prior planning and logistical strategy are necessary to ensure that the operation is ready to meet all demand.
But does warehousing logistics really make a difference? Imagine the scene: your store is doubling the sales of the month in just one day and when it comes time to ship orders, the news arrives that there was an error in stock management and that, with that, the quantity of products that are not available is available. have already been purchased. And now?
It looks like a nightmare doesn't it? This is a situation that, unfortunately, is very common in the middle of an operation, even at times when sales are not at their peak. This is just one of several reasons that demonstrate the importance of having efficient storage logistics.
Do not know where to start? We will help you! We have prepared this content to clarify some of the most frequent doubts regarding stock management, storage and also share solutions that will make a difference for your business.
After all, what is inventory and storage management?
Before talking about strategy it is important to make clear the difference between stock management and storage, which despite being complementary to each other, have different goals.
The word stock refers to the act of storing raw materials, semi-finished products or goods ready for consumption on a temporary and / or permanent basis. Storage is an action present in various sectors such as retail and industry.
Inventory management is nothing more than the action of managing the items that are stored through activities that guarantee the organization and specific needs of the products, in addition to the control to meet the demand for orders.
Storage, on the other hand, is related to the concept of warehouse or physical deposit and encompasses all the processes that are carried out in the space, which includes storage. We can say that it reduces the distance between who sells and who buys.
The efficiency in the activities that are part of the storage, directly influence the logistics strategy of the company, after all, this is where it all starts. If the product is not in stock or does not go through the processes in due time, delays occur and the end customer also feels the impact, something that no one wants.
Now that we have clarified the differences between the concepts, let's talk about what inventory management involves and learn about some of the obstacles faced today.
How flow normally works
Inventory management varies according to the type of product and the company's need, but we can say that in general the flow involves receiving and checking the goods, storing them appropriately (taking into account their characteristics), carrying out the periodic inventory and send the right quantity for shipment without delay.
It may seem simple, but within the mentioned activities there are countless situations that turn into problems and demonstrate how the lack of inventory management is the first piece of a “domino effect” that can generate losses and the worst, cause a bad impression to the final client.
We have separated 5 items that are among the biggest challenges when dealing with inventory management:
1 - Buying in excess
Many have the idea that a full stock is the guarantee that all orders will be fulfilled and the reality is not quite that, it is necessary to take into account other factors, such as:
- Validity period: Even when making a sales estimate, it may be that there are not as many orders as the estimated one, with this the products may exceed the expiration date, which also represents financial loss;
- Need for more storage space: The more merchandise, the greater the space needed to store them, which can lead to the need to adjust the size of the warehouse or warehouse, something that generates costs, in addition to the risk of losing products during changes ;
- Working capital: The company's financial is also negatively affected by the excess of stock, this is because it is necessary to provide a high amount for the purchase of products and as there is no certainty of the sale it may be that the return will take time to happen.
2 - Lack of periodic inventories
The inventory is the process that allows the conference between the physical stock and the system, so it is possible to identify possible operational failures. Not carrying out this activity on a rotating basis (taking into account the needs of the company) affects storage logistics and generates costs due to losses.
3 - Security breach
Not having access control to the stock and not monitoring the products can facilitate the theft of goods, which influences the inventory and represents financial loss.
In addition, there are situations in which a company employee needs the product, either for a particular test or to be used in marketing processes, for example.
Regardless of the reason, the question is: when the stock is not monitored and does not have a person in charge, it may happen that the person removes a merchandise that will generate divergence in the inventory and, thus, start a chain reaction.
4 - Do not record all movements
Inventory management involves discipline, if any entry or exit movement is not recorded, it can cause inconsistency in the inventory and lead to an unnecessary material purchase.
5 - Lack of automation
Performing inventory control manually is not the best option. We say this because the risk of operational failures is greater, since the volume of information to be controlled is extensive. In addition, it is necessary to take into account data reliability and employee productivity.
How can it be improved and what are the gains from it
It is no secret that logistics is often related to problems, but at the same time, it is this sector that offers solutions that will become a competitive advantage, whenever and when they are well applied.
For the 5 challenges mentioned in the previous topic, we selected 5 actions that are the answer to ensure an ideal inventory management so that your company has an efficient storage logistics.
1 - Ensure that your stock is optimized to the company's strategy
What to Buy? How much to buy? When to buy? These are simple questions, but they make all the difference in structuring your inventory, after all, in addition to the excesses, losses also impact the rest of the operation, so it is vital to find balance.
At brclog, we work with storage logistics and understand every detail of the challenges involved. With regard to guaranteeing the ideal stock for each operation, we work with the fundamentals of Logística 4.0 (click here and learn more about this trend that is revolutionizing the market).
For example, we have a WMS (Warehouse Management System) that allows us to monitor in real time the status of orders, the position of the stock, in addition to the automatic insertion of orders, which promotes greater agility in the operation. Through the system, it is also possible to monitor the validity, temperature and humidity of the products, which is essential to avoid losses.
With that, we can say that using technology to control inventory is an effective method to reduce costs and losses, because as information is available, it becomes easier to make strategic decisions.
2 - Make periodic inventories
As we mentioned earlier, the inventory is the process that helps to identify inconsistencies and possible flaws in the process.
At brclog, the inventory is carried out in a physical and electronic way and the fact that we have the support of advanced systems and a trained team makes the process dynamic and personalized.
3 - Invest in security
Monitoring the inventory is also a way to make a good management, since this also avoids losses. For this, we recommend using a good camera system, in addition to access control by people. At brclog, each has their own login and password to access the stock, which makes it easier to identify any kind of divergence.
4 - Control the movements
The technology also helps to overcome this challenge, since, since the operation has a robust system, it is easier to insert the input and output movements, in addition to offering greater reliability.
Products that are received at brclog go through a conference, receive bar codes and smart tags, which is one of the means to ensure that the information is in the system and that the items can be located more easily.
5 - Automate and optimize
In one way or another, all of the points mentioned above involve to a certain extent the use of technological tools, but there is a crucial factor in ensuring efficient storage logistics that does not involve any system, the choice of the ideal partnership. Hire only those who are willing to meet any and all needs of your operation and who understand the importance of the commitment.
Since the beginning of its journey, brclog has accepted innumerable challenges to be up to what each operation requires, with customized logistical projects, after all, we understand that #JuntosVamosMaisLonge.