#2. MINIMISE INVENTORY MOVEMENT
Inventory Putaway, Picking and Transfers should be carefully thought through. Any inventory movement should be in-line not only with your sales forecasts but also with your inventory movement costs. As a general rule, high ticket items should have zero warehouse movement. Consider re-organisation of floor plan or warehouse locations if it will minimise your inventory movement. Reduction in inventory movement has a significant impact on asset loss and theft too.
#3. INVENTORY ROTATION
The key here is balance and alignment between your sales forecast and inventory forecast. Your asset management software should be able to define the success level for optimal inventory rotation. This is especially the case if you are renting your inventory and your business is cyclic.
#4. TRACK YOUR ASSETS OR INVENTORY EFFECTIVELY
Asset tracking for fixed assets can be done by two ways – Barcode and RFID. Following is a comparison table between the two technologies:
|Asset Tracking Distance||15 ft – The barcode should be in line of sight||Up to 250 ft, the RFID tags need not be in line of sight|
|Asset Tracking Speed||Tracking rate is one barcode at a time||Tracking rate can be as high as 35 RFID labels simultaneously|
|Material Restrictions||None – Barcode works on almost all materials||RFID technology can be restrictive in metals and sometimes in liquids too|
|Accessibility||You can only read a barcode||You can read, write, edit and update RFID tags|
|Asset Tracking Accuracy||High||High|
|Human Intervention||You have to print labels frequently and they are labour-intensive.||Once set-up generally do not require any intervention|
|Level of Information||They just have basic product and manufacturer name||Can carry large amount of data – service history, order history etc|
|Security||Less secure than RFID as barcodes can easily be reproduced||Highly secure with comprehensive password and encryption features|
|Durability||Barcodes need to be readable by scanner so are on the outside of the asset, hence can be easily damaged.||RFID Tags are difficult to damage and can be within an asset so can be read in adverse environments|
|Costs||Fundamentally involves barcode labels, printer and scanner, cheaper than RFID||RFID is an expensive technology due to chip and wave technology.|
Asset Inventory Cost is almost one of the top five costs for every business, so it pays-off to configure the inventory management feature within your asset management software.