Businesses everywhere end up paying huge amounts of money due to spoiled inventory, and over time those costs can make the difference between the failure or success of a business. Especially in the current economic climate it’s essential for businesses to reduce or eliminate the cost of spoiled inventory. Every year the total value of spoilage worldwide is more than $35 billion.
Spoilage doesn’t have to become a major expense for any business. While businesses that deal in perishable items like food will always have to account for some spoilage that cost can be lowered with an automated warehouse management system and some changes to your operation.
How to Reduce the Costs of Inventory Spoilage
Better Visual Inspection
When perishable items are delivered to be put in the inventory they should be checked immediately for any signs of rot, decay, or damage that might make them likely to spoil faster. Getting rid of any potential problem items before they are placed in the inventory can slow down the rate at which the items spoil. However, the employees performing the inspections need to work swiftly in order to get the best quality items into the proper storage right away to keep them fresh as long as possible.
Faster Order Fulfillment
When perishable items are purchased and need to be sent to customers those orders should be fulfilled as quickly as possible. The longer that perishable items sit in storage the faster they will decay. The items will be spending a day or several days in transit so to be sure that that still look good and are not rotted when they arrive at their destination the orders need to be packaged fast. An automated warehouse management system can help speed up the order and fulfillment processes so that there is very little down time between when a customer orders an item and when it is shipped out. That will reduce spoilage and give customers a good experience with the company.
Better Storage Of Perishable Items
Storing perishable items properly is crucial. Refrigerated storage bins and other temperature controls can make a big difference in how long perishable items survive. An automated inventory management system can monitor the state of those temperature controlled storage areas to make sure that the temperature is right for storing perishable items and that the temperature stays consistent. When you have the right size inventory you will enough storage for your perishable products without having to waste produce or pay huge fees to cover spoilage losses.
One of the biggest advantages of using an automated warehouse and inventory management system for perishable items is that it can help prevent over-ordering. With detailed, real-time inventory tracking you will be able to maintain a steady inventory that will meet the demand without filling your warehouse with perishable product that will go bad and end up driving up spoilage costs. Consistency is the key to successfully gauging how much inventory you need to have on hand. The metrics from an automated management system can help you interpret data more effectively and ensure that you don’t order more product than you need.
Automated Warehouse Management System for Macola and SAP Business One
Ready to get started with an automated warehouse management system? WiSys Agility solutions have been designed to achieve efficient Warehouse Management, Supply Chain Management and Inventory Management. Contact us to learn more.