There are three basic reasons why you may be relying on a “Go Back” inventory system:
1. Your software is either old or mismatched to your operations. Often times, the “work around” procedures required to maintain an accurate inventory count on an out-dated or mismatched software system are too time-consuming or unwieldy to maintain on a day-in, day-out basis.
2. Your software is current and appropriate to your operations, but it has not been configured properly or your staff has not been fully trained as to all of its functionality.
3. Your operations have not been configured to supply the discipline required to properly deploy the functionality inherent to your business software.
The first step in taking control of your inventory is to determine which of these three basic factors is causing your inventory inaccuracy. If you determine that the root of the problem is that your software is old or mismatched to your operations, it is time to begin researching new software and budgeting for its acquisition and implementation. Likewise, if you determine that your present system provides the necessary functionality for accurate inventory control, then it is time to review your control setups and re-train your staff on the software or in new operational procedures that are congruent with the software. TBS Automation can provide further in-depth review and analysis of your present software and operational practices. If necessary, we may provide re-training and re-implementation services on your present software. If new business software is required, we can provide a proposal for the best fitting software from the three major software lines that we represent.
In your initial review of your present system and operational practices, we suggest that you consider the following factors:
1. Are all physical inventory “movements” accompanied by a corresponding transaction in the accounting software? Typical problem-causing stock movements include: sales samples, trade show samples, returned goods, materials awaiting quality assessment from management, etc.
2. All employees must adhere to a strict policy of not taking, “borrowing” or moving items without an accompanying transaction in the accounting system. This policy must include management and sales staff – there can be no exceptions. Often times, senior-level management is the worst offender in taking products from warehouse shelves without accounting for it. The repercussions for disobeying this rule should be meaningful and nobody should ever be immune from it. Unless physical inventory matches the computed inventory, you will have no faith in your computed quantity available figures and will never get away from having to walk out to the warehouse to check the shelves.