How to Minimize Inventory Errors 

 

Human error is inevitable, especially when managing inventory. However, this doesn’t mean you shouldn’t try and make processes as efficient as possible to avoid errors. Inventory errors can cost a business a great amount of money if it isn’t in check. Here’s how to minimize inventory errors with organization, consistency, and more.

Label Items

The first mistake many businesses make with their inventory is that they don’t label anything. When you don’t label items, this is how inventory becomes lost and unaccounted for. Be sure that your storage has a clear label detailing what items are on the inside.

Be Consistent

Now, you might label items and boxes, but the location of the labels might be on the top or the side depending on how the muse inspired the labeler—you want to avoid this, too. Try to create a process that works for your business and keep it consistent. Label every box or item in the same spot so employees know exactly where to look. The same goes for shelves as well.

Organize the Warehouse with Color

A third way any business can reduce inventory errors is by organizing your warehouse or storage space. Again, this is all about creating a system. An effective method used for organization is color-coding. Divide up the inventory and assign them each a color. Then, place the inventory in a specific location and use color-coding stickers. Not only will this make items easier to find, but it will help you avoid any simple mistakes, such as misplaced items.

Communicate the Process

Now, our final suggestion for businesses who are trying to figure out how to minimize inventory errors. For a process to work, employers need to explain it to everyone. This is why training is crucial and ensures that everyone is on the same page when it comes to the processes. Creating a simple guide or visual for employees to follow is one way you can effectively communicate a new process.