Inventory Management Services
Inventory is a skeleton of an enterprise in any manufacturing industry. Oftentimes severely neglected, absence of automation and monitoring can cause severe damage to the equipment as well as the company’s budget. In order to act fast in case of a unit break-down, one should regularly keep track of each equipment detail and avoid or mitigate possible failures by predicting them. This is what the Inventory Management team at Keel Solution does.
Being a part of the Material Management process, effective Inventory Management is impossible without timely and correct classification of equipment. We organize your Store Keeping Units (SKUs) according to your business conditions and make sure the required products are available at the necessary time. When needed, Keel professionals will assign, check and verify HS Codes whenever international delivery takes place.
Inventory Management benefits:
- Reduction of storage cost by removing obsolete parts;
- Spare Parts and Interchangeability Record (SPIR) formation;
- Up-to-date warehouse condition;
- Inventory forecasting;
- Robust material delivery.
Performing physical checking is absolutely essential for keeping track of warehouse condition. Even with the advancement of technologies and automation of inventory tracking, most of the businesses need regular stock update to take place few times a year. What Keel Solution professionals do is create a plan that would eliminate undercounting and overcounting that entail serious consequences. We make sure all discrepancies are eradicated and your business meets targets.
It is well-known that the Pareto principle works with warehouse management. It means that 80% of the company revenue from the inventory is received from only 20% of the stock. This means that prioritizing the items within the warehouse is essential for appropriate value hierarchy, which ABC analysis does. According to this approach, we classify all SKUs into three categories:
A category includes most frequently used items that earn the biggest chunk of the yearly income.
B category is the items with the medium consumption value.
C category includes the least used items that bring the smallest income.
During this analysis, our specialists separate the most profitable items from the least profitable. This significantly saves time during future cycle countings and helps to make sure the most profitable items are ready. In short, ABC analysis brings such benefits:
- The most profitable items are under sufficient control;
- Staff expenses are minimized;
- Facilitated regular control;
- Possibility to track A items with C items never being overlooked.
Having plenty of experience and knowledge in adjustment ERP to various business needs to amplify its efficiency gives us an opportunity to help you in finding the best approach to improving and organizing your ERP system.
Maintaining an organized and up-to date ERP system significantly facilitates resource planning and makes it a budget-friendly solution.
Normally, you can customize ERP data fields according to your needs to create a sustainable database. With perfectly organized information, your ERP will timely inform you when certain items should be purchased, allowing you to plan your expenses accordingly.
Unlike stocktaking, cycle counting is a more time saving and budget-friendly way of keeping a warehouse in o order. Rather than going through all the stock at once, cycle counting implies gradual check of all SKUs by splitting them into small groups. However intimidating and complicated it might seem at first, the benefits won’t take long. Here are some of them:
- No interruption to the business process
- Money saving due to reduction of idle time and hands-on work
- Elimination of mistakes due to smaller workloads
- Better control and planning of work and finances
Cycle counting is very closely intertwined with ABC Analysis and one usually entails another. Therefore, after creation of the inventory hierarchy, the next step is making sure the process goes smoothly and everyone knows what to do. Here, after creation of the whole process chain and making sure nothing is omitted, we control and teach your personnel to follow the same procedure precisely.
Economic Order Quantity (EOQ)
EOQ is a specified number of orders that should be made to minimize transportation and storage cost and satisfy production needs. The bigger the inventory – the higher the storage cost; the more frequent the ordering – the cheaper the delivery and the prime cost. We calculate the EOQ, taking into consideration the annual demand, order cost per order, holding cost and other factors important for the business.
Any of the inventory management processes can be drastically facilitated by automatization. Delegating some processes to machines leaves little chance for human error, processing the data quickly and efficiently. Even though human interference is still randomly necessary, integration with ERP allows deploying modern machine learning technologies, approaching the Industry 4.0. We have successfully organized automatization processes with ID scanning (QR, Bar Code, RF ID).
Keel has been providing inventory management related services since 2009, helping our customers optimize the inventory management process by providing all of the aforementioned inventory management operations, ranging from the “simplest” stocktaking to the complex Audits across several facilities, with the deep analysis of the root causes and recommendations for optimization.
Procurement Support service specification
Read more about our experience optimizing the procurement cycle and all spectrum of logistics management:
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