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Fixing A Broken Inventory System:
A Step-by-Step Guide

Fixing a broken inventory system can be a complex task depending on the specific issues you’re facing.

However, RIGSERV can provide you with some general steps that can help you address common problems and improve your inventory management.

Here’s a step-by-step guide:

Identify the problems

Begin by assessing and documenting the issues in your inventory system. This might include inaccurate stock levels, disorganized storage, inefficient processes, lack of real-time tracking, or other specific challenges.

Set clear objectives:

Determine what you want to achieve with your inventory system. Establish specific goals such as reducing stockouts, improving accuracy, streamlining processes, or enhancing visibility. These objectives will guide your efforts in fixing the system.

Conduct a thorough inventory audit:

Perform a physical inventory count to reconcile your stock levels with the data in your system. This will help identify any discrepancies and enable you to establish a baseline for improvements.

Upgrade your software:

If your inventory system relies on software, evaluate whether it meets your current needs. Consider upgrading to a more robust and specialized inventory management software solution that offers features such as real-time tracking, barcode scanning, reporting, and integration capabilities.

Standardize processes:

Establish standardized procedures for managing inventory, including receiving, storage, picking, and shipping. Clearly define roles and responsibilities and ensure that everyone involved follows the established protocols.

Organize your storage space:

Optimize your warehouse or storage area by implementing a logical layout. Categorize products, assign storage locations, and label them clearly. This will help improve efficiency and reduce the time spent searching for items.

Implement barcode or RFID systems:

Introduce barcodes or radio frequency identification (RFID) technology to track your inventory accurately. These systems enable you to scan items quickly, automate data entry, and minimize errors associated with manual processes.

Establish inventory control mechanisms:

Set up regular stock counts and cycle counting procedures to monitor and maintain accurate inventory levels. Develop protocols for handling discrepancies and implement checks and balances to prevent errors.

Train and educate your staff:

Provide comprehensive training to your employees on the new inventory system, including software usage, proper data entry, and best practices for inventory management. Ongoing training will ensure everyone understands their roles and responsibilities.

Analyze and optimize:

Continuously monitor your inventory system’s performance and measure key performance indicators (KPIs) such as stock turnover rate, fill rate, and accuracy. Use this data to identify bottlenecks and areas for improvement and adjust accordingly.

Integrate with other systems:

If applicable, integrate your inventory system with other business systems like accounting, sales, or purchasing. This integration enhances data accuracy, reduces manual data entry, and provides better insights for decision-making.

Regularly review and refine:

Inventory management is an ongoing process, so periodically evaluate your system’s performance and adjust as needed. Stay informed about industry best practices and emerging technologies to ensure you remain competitive.

Each organization’s inventory system is unique, and we can tailor these steps to suit your specific requirements. 

Partner with RIGSERV and we will help you fix your inventory management system.  We have experienced people, documented and proven processes, and modern in-house design technology to help you lift and move your inventory to the next level.

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