There are advantages to replacing older inventory control systems with better warehouse inventory management systems. The warehouse operator can have greater control over inventory levels –virtually eliminating wastage while ensuring correct receipt and dispatch times. A good inventory management system can result in significant reduction in operating expenses and improved customer service.

1. Better Inventory Management Systems Can Reduce
Operating Expenses
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There are advantages to replacing older inventory control systems with better warehouse inventory
management systems. The warehouse operator can have greater control over inventory levels –
virtually eliminating wastage while ensuring correct receipt and dispatch times. A good inventory
management system can result in significant reduction in operating expenses and improved customer
service.
Automation
When adopting a new inventory management system it is crucial to strike the right balance between an
automated, software-driven inventory system and the human element. An automated inventory
management system records the movement of merchandise, from entering the warehouse to exiting it.
Warehouse personnel can easily track the accuracy of inventory levels, ensuring errors are corrected.
A better inventory management system should result in the following:
Reduction of lead times – the quicker product
or merchandise turn around time, the more
cost effective it is to the warehouse owner and
the better the customer service.
Free up warehouse space – more space is
available for storage.
Make it easy to locate goods, and therefore
save time.
An efficient inventory management system must
keep track of goods received, stored, sorted, and
dispatched, with the aim of maximizing warehouse space through the correct allocation and tracking of
warehouse space.
Fixed… Or Movable?
Fixed and movable Inventory tracking and location options:
With fixed location and tracking, a section or space in the warehouse is designated to particular
or similar type of product. This tracking system simplifies warehouse planning. The drawback
with such a plan is empty space in the designated area is unused when inventory levels of the
product is low.
In movable or random tracking there is no designated area for a product, but the tagged item is
tracked by the inventory computer. The advantage of such a system is maximized warehouse
space. However, such a system can be cumbersome – it may be difficult for warehouse
personnel to gain access to the product in question.
An effective inventory management uses software to seamlessly integrate the use of technology such
as automatic identification, barcode tags, barcode scanners, and LANs in combination with fixed and
movable tracking to ensure correct product levels. Sophisticated inventory management tools such as
the Warehouse Management System or WMS assist warehouse managers to manage inventory levels.

2. An inventory management program such SAP Inventory Management tracks the movement of stock in
and out of the warehouse.
Warehousing companies with better inventory management can deliver product to customers on time
and the right quantity, and warehouse managers must be dedicated to the needs of your business.
Industrial Services
Commonwealth Industrial Services, Inc. (CIS) is an industrial services company
located in Hopewell, Virginia. Although historically a service business, CIS’ primary
profit center is the packaging and resale of ammonium sulfate.
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