Managing a business is no easy task. Inventory management, for one, is an area in the business world that can keep even the small business owners up at night. Take, hospital inventory management, for example. If you don’t keep track of all your inventory, then there is every chance that your institution may get mismanaged. Fortunately, thanks to technological advancements, inventory management software and inventory control have greatly evolved. Today, you find that an effective Medical Inventory Management Software has the capability of helping hospitals keep track of their inventory. For one, the hospital management will have all the information regarding their inventory. Nothing can be more fulfilling than knowing where all your inventory is.
Inventory management software can also enable you to account for where each inventory is, how much inventory you have in your storage, and even who is using certain items in your business. Besides these, inventory management also works to provide business a myriad of other benefits.
But then, now that you have the best inventory software for your business, how do you use it? Well, in this case, the say, you are only as good as your tools, mean something. Inventory management software and systems work to help your business cut back on losses. And here’s how you can do it.
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What is Lean Inventory Management (LIM)?
As mentioned earlier, inventory management works to make your storage work easier and more efficient. Lean inventory management also does exactly as it sounds. Lean inventory management works to cut down on excess inventory and only stick to what is essential. By this, you will basically be attempting to eliminate everything in your storage that you don’t need. At the same time, the system works to have only the essential products and other items in your inventory.
By reducing the amount of stock in your inventory at any time, you’ll also save on space and working costs. You will also sufficiently cut back on the time and effort that you spend on managing that same stock.
Lean Inventory Management Techniques
Most lean inventory management systems are built on several principles. These principles can then be divided into 4 different areas. Mainly:
- People and partner
1 . Process
- The pull system approach
Here, inventory management uses a pull system. The primary reason for this system is to avoid any extra inventory. in this lean inventory management system, inventory is only moved when a customer places an order on it. The just-in-time (JIT) technique is one excellent example of the pull system approach.
JIT works to reduce your business’ overall safety stock to a minimum. If possible, JIT even works to eliminate your safety stock altogether. By doing this, JIT aims to order just enough stock that meets your customers’ demands. There are many risks involved in using this approach. However, on the upside, it dramatically lowers the costs of holding and maintaining an inventory that you don’t really need.
- Your staffs’ workload Level
Lean inventory management also works to cut on excessive staff workload as well. However, you also want to ensure that the staff you already have aren’t overburdened with work. You also want to ensure that all your staff share in inventory and business workload evenly. When this happens, your staff will then work more efficiently and also reduce the risks of human errors occurring.
- Using accurate inventory control Software
Modern inventory management software work to make your employees’ work more efficient without necessarily having to replace them entirely. In this case, you want to choose an inventory system that also features mobile inventory and sales forecasting app features.
2. The Philosophy
It is essential that you also respect your business’ long-term philosophy. You can do this by ensuring that every decision you make also reflects on your business’ long-term vision. Never forsake your business’ long-term vision even if it means having to take some short-term losses and hits along the way. Medical Inventory Management Software, for example, work perfectly to ensure that this becomes a reality if properly implemented.
Never abandon your business’ perspective for a few short-term losses. Doing this will only prevent you from achieving all your principles successfully.
Identify activities that bring value to your business
Excess and useless inventory is one of the factors that you need to identify and deal with early. So, ensure you assess all your business activities and only engage in the value-added activities. Then you can do away with the non-value added activities. Recognizing that there’s a problem with your inventory or how it’s managed is the first step towards changing how you approach it.
3. Problem Solving
Here, you need to work to see the problems by yourself and how they are damaging your business. The moment you realize that your business’ inventory has a serious problem, it’s upon you to take matters into your own hands and investigate the source of the problem. Once you find it, you can then work out the best course of action to take to solve it. As the business owner, you also want to always strive for constant improvement of your business at all times.
Lean inventory management works to provide you the best, most current inventory management software that makes inventory management a breeze. Always work towards building your business’ processes. Slowly but surely, you will notice some improvements in how your business functions.
4. People and partners
Last but not least, you also want to strive to build good relationships with your suppliers as well. This is an insanely crucial step to take whether you intend to adopt a lean inventory management process or not. It, however, depends more on the pull system as well. Simply because the orders your suppliers provide depends more on the customers’ orders. So, you will always need the shipments to arrive quickly, and in a reliable, consistent manner.
Achieving lean inventory management in your business isn’t as difficult as some business owners think it to be. You don’t even need to have a brilliant mind to have it done. As long as you have a great team working in the background to make sure everything runs smoothly, you’ll be good to go. Always ensure you stay ahead of all inventory management information to keep a handle on things should anything go haywire.