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Inventory management poses significant challenges for small business owners. Maintaining the delicate balance between having enough stock to meet customer demands and minimizing excess inventory can be daunting. Enter the perpetual inventory system (PIS)—a game-changer that offers real-time inventory tracking and enhanced accuracy.

This blog post will look into what a perpetual inventory system is, how it works, and why it might be the perfect solution for your business needs.

What Is a Perpetual Inventory System?

A perpetual inventory system is an inventory management technique that continuously updates inventory records to reflect real-time changes in stock levels. Unlike periodic inventory systems that only update records at specific intervals (e.g., monthly or annually), a perpetual system provides up-to-the-minute data on stock quantities, helping businesses make informed decisions.

In addition, with a perpetual inventory system, businesses can automatically calculate the cost of goods sold (COGS), offering better financial insights, improving inventory control, and aiding in accurate financial reporting.

How Does a Perpetual Inventory System Work?

Implementing a perpetual inventory system involves integrating various technologies to ensure seamless, real-time tracking and updating of inventory levels.

• Real-Time Tracking of Inventory: The perpetual inventory system continuously monitors inventory levels by recording every transaction as it happens. This real-time tracking ensures that the inventory data you see is always up to date, reducing the risk of stock discrepancies.
• Integration with Technology: Modern perpetual inventory systems are integrated with advanced technologies like barcode scanners, RFID tags, and inventory management software. These tools make it easy to record transactions instantly and accurately.
• Automated Updates: Every sale or purchase triggers an automated update in the system, adjusting inventory levels in real-time. This automation helps to maintain accurate inventory records without manual intervention, thereby minimizing human error.

Benefits of Implementing a Perpetual Inventory System

Below are some of the benefits of implementing a perpetual inventory system.

• Improved Inventory Accuracy: The perpetual system significantly reduces inventory discrepancies and shrinkage by offering precise tracking of stock levels and movements. This accuracy is crucial for making informed business decisions.
• Reduced Stockouts: With real-time inventory updates, a perpetual system helps to ensure optimal stock levels, reducing the risk of stockouts and backorders. This reliability enhances your ability to meet customer demands consistently.
• Better Demand Forecasting: The data-driven insights provided by a perpetual inventory system enable better demand forecasting. Accurate historical data helps predict future needs, allowing for more informed purchasing decisions.
• Enhanced Warehouse Efficiency: By streamlining processes such as picking, packing, and cycle counting, a perpetual inventory system can significantly improve warehouse efficiency. Automated updates and real-time tracking reduce the workload on your staff and enhance overall productivity.
• Improved Customer Satisfaction: Timely order fulfillment and better stock control directly contribute to higher customer satisfaction. Knowing that you can meet their demands promptly builds customer trust and loyalty.

Challenges and Considerations

While the benefits are substantial, there are challenges to consider when implementing a perpetual inventory system.

• Initial Setup and Implementation Costs: Implementing a perpetual inventory system can require a significant initial investment in hardware, software, and training. However, the long-term benefits often outweigh these initial costs.
• Dependence on Accurate Data Entry and Technology Reliability: The system’s accuracy relies heavily on precise data entry and the reliability of the integrated technology. Any errors in data entry or system failures can affect the accuracy of your inventory records.
• Training Requirements for Staff: Proper training is essential to ensure that your team can effectively use the new system. Investing in thorough training programs can mitigate potential issues and maximize the benefits of the system.
• Need for Regular Maintenance and Updates: Like any technology, a perpetual inventory system requires regular maintenance and updates to function optimally. Staying on top of these updates is crucial for maintaining system reliability and efficient supply chain management.

Talk to the Team at APS Fulfillment, Inc. about Improving Your Inventory Management

Perpetual inventory systems offer a revolutionary way for small business owners to manage their inventory with precision and efficiency. By providing real-time tracking, reducing discrepancies, and enhancing overall operational efficiency, a perpetual system can be a vital tool for business growth.

If you’re ready to explore how a perpetual inventory system can benefit your business, consider reaching out to APS Fulfillment, Inc. for more information. We make warehouse management and goods tracking easy and simple and we’ll also support your business and automate the warehousing, prepping, shipping, picking, and packing of your orders!

Get in touch with us today to start optimizing your inventory control and experience the transformative impact of perpetual inventory systems firsthand. To book a consultation, call (954) 582-7450 or email [email protected].

Background

An Amazon FBA/FBM clothing company was dealing with mounting warehouse rental costs and system inefficiencies. Their self-managed warehouse was proving more of a liability than an asset, and the organization was falling short of professional standards. In an attempt to find a robust solution to their warehouse woes, they turned to APS Fulfillment, Inc.

The Challenge

The clothing company was caught in a web of complex issues:

• High Warehouse Rent: The company owned their warehouse, but the escalating rental costs were impacting their profitability.
• Lack of Professional Systems: As a business that was not a full-fledged 3PL, their operations were marked by system inefficiencies, which led to recurring errors.
• Inefficient Inventory Management: The company’s inventory was simply placed on pallets on the floor, lacking proper organization or efficient storage solutions.
• Manual Processing: Their outdated system involved printing labels individually and manually entering all information regarding weight and shipping preferences, leading to delays and potential errors.

The APS Fulfillment Solution

Recognizing the company’s specific challenges, APS Fulfillment offered a comprehensive suite of solutions:

• Affordable Storage Rates: APS provided the clothing company with highly competitive storage rates, significantly reducing their overhead costs.
• Professional Services and Systems: APS’s seasoned team of professionals took over the company’s order and shipment management, leveraging APS’s advanced Warehouse Management System (WMS).
• Improved Inventory Management: All products were placed into racking and bins, facilitating efficient picking and organization. Each product was labeled in their slots, improving accessibility and accuracy.
• Automated Label Processing and Shipping: APS’s WMS automatically calculates shipment weights and scouts for the most economical rates, significantly reducing manual processing. This allowed for batches of shipments to be processed within minutes, ready for daily courier pickup at 4:30 p.m.

Related: APS Fulfillment, Inc. Announces the Rebranding of Its Warehouse Management Software to Extensiv

Results

The intervention by APS led to substantial improvements:

• Lower Costs: By offering a competitive storage rate, APS effectively reduced the company’s overhead expenses, improving their bottom line.
• Improved Operations: APS’s professional services and advanced systems significantly upgraded the company’s operations, minimizing errors, and enhancing efficiency.
• Efficient Inventory Management: The reorganized inventory led to faster and more accurate order fulfillment.
• Automation: The automated label processing and shipping facilitated a smooth, error-free process, with real-time tracking updates provided to customers.

Conclusion

APS Fulfillment’s tailored solutions and expertise in warehouse management have revolutionized the Amazon clothing company’s operations. By taking over their warehouse management with professional services and advanced systems, APS demonstrated the power of efficient third-party logistics, improving operational efficiency, customer satisfaction, and profitability.

Background

A prominent medical company found themselves grappling with high storage costs and inefficient warehouse management. The company was keen to restructure their operations and control their escalating storage prices. After a thorough search for the right partner, they turned to APS Fulfillment, Inc. for a comprehensive solution.

The Challenge

The medical company faced substantial hurdles:

• Inefficient Warehouse System: Their existing system was heavily reliant on pallet storage. This approach led to significant inefficiencies and made product retrievals a cumbersome task.
• High Storage Costs: The system’s inefficiencies were causing a considerable financial drain. Moreover, they were anticipating the necessity to increase their storage prices, potentially harming their market competitiveness.

The APS Fulfillment Solution

APS Fulfillment stepped up with strategic solutions to address these issues:

• New Storage Space: APS provided the company with a new facility, enabling them to maintain their current storage rates. This relocation effectively reduced overhead costs and ensured seamless business operations.
• Binning System: APS implemented a binning system in the warehouse, significantly reducing the dependency on pallets. This new system improved pickability and better utilized the warehouse’s vertical space, allowing for access to storage pallets located up high and consolidating their excess storage.

Results

The collaboration with APS led to remarkable improvements:

• Improved Warehouse Management: The binning system significantly increased the efficiency of the warehouse operations by optimizing storage and retrieval processes.
• Controlled Storage Costs: By relocating to APS’s facility, the medical company managed to keep their storage costs stable, avoiding a potential price hike.

Conclusion

Through APS Fulfillment’s tailored warehouse and fulfillment services, the medical company experienced a significant transformation in their operations. APS’s solution demonstrated the value of bespoke warehouse solutions, proving its ability to cater to diverse business needs, regardless of the size or industry.

Warehouse managers have the difficult task of keeping track of all the materials in a warehouse, including where products are currently located and where they should be. You would think the advancement of software has made this job somewhat easier—and it has to some degree—but software advancement has also led to added responsibility.

What Is a Warehouse Management System?

Software that is able to process the day-to-day operations of a warehouse is considered a warehouse management system. Previously, these systems weren’t able to do much more than locate products within a warehouse—but warehouse management systems can now track a package for the duration of its movement from purchase to end user. Management systems should be able to process the associated transactions, including shipping, receiving, and pickups.

8 Tips to Improve Warehouse Management Process

Keep in mind that behind management technology are real people who are still responsible for the actual management. While the software has become a valuable tool in accommodating warehouse management, the human aspect still plays a vital role.

Below are some steps must be taken on a regular basis to ensure the warehouse operates at a premium level with minimal mistakes.

Keep the Warehouse Organized

An organized warehouse is a productive warehouse. If your facility is cluttered and cramped, it will be difficult to move product in and out efficiently. Work with your team to establish organization protocols and stick to them. This may involve color-coding certain areas, using specific types of shelving for certain products, and designating certain aisles for specific tasks.

Conduct Regular Audits

One of the most effective ways to ensure that operations stay at their peak performance is to conduct regular audits of existing systems and practices. Auditing helps make sure that materials are stored securely, proper labeling systems are in place, protocols regarding waste removal and safety measures are enacted, and all resources are properly allocated.

Reduce Inventory That Doesn’t Sell

Having too much inventory on-site ties up capital on items that are not moving, so take a look at what has been sitting in the warehouse for an extended period and consider writing it off or reducing its quantity. Additionally, you may want to take steps to prevent overstock in the future by having better visibility into sales trends and being flexible with orders or lead times.

Avoid Delays when Receiving Shipments

Setting a timeline for incoming orders to be processed and ensuring staff are trained in proper receiving procedures are key steps in avoiding delays that could potentially prohibit future orders from being fulfilled correctly and on time. Establishing an efficient supply chain process with coordination between vendors and warehouse managers is also vital to a successful delivery system.

Invest in Employee Training

Effective employee training can help to ensure that operations run smoothly and efficiently, with fewer mistakes being made along the way. It can also improve morale as employees feel empowered by the knowledge and resources they have had access to when training. Warehouse management processes should also involve creating a clear chain of command with outlined roles and responsibilities, so everyone is kept up to date.

Take Advantage of Technology

Technology can be used in a number of ways to increase the efficiency of your warehouse management process. Utilizing a warehouse management system can automate a number of tasks and keep track of inventory levels, allowing you to manage your warehouse more effectively. You can also use barcoding and RFID tags to keep track of products and locations within the warehouse, which can save time when searching for items.

Get Automated

Automation can help you save time and money, increase accuracy, process orders faster, and reduce errors along the way. Furthermore, automated reporting tools can provide powerful insights into any changes that need adjustments as well as enable forecasting of potential problems before they arise.

Consider a Fulfillment Center

Warehouse and fulfillment centers form an integral part of the logistic industry and integrate with the warehousing process. Fulfillment centers are designed with streamlined structures to make receiving orders, managing inventory, and dispatching shipments quick and efficient. Furthermore, managers have better control over activities while reducing time and labor costs.

Get in Touch with APS Fulfillment, Inc. for Your Warehouse Management Needs

You may look at this list and wonder how you can implement any of these changes—or you may feel like you already have a fair grip on the way your warehouse is currently managed. But the goal is not to be “fair” or feel afraid of change. APS Fulfillment, Inc. can find and execute warehouse solutions to take your fulfillment services to the next level.

We are based in Florida but offer shipping fulfillment for clients worldwide. If you require fulfillment services, contact us today.

Also read: How Packaging Helps in Successful Warehouse Management?

The holiday season is a time when businesses see a surge in orders. It’s also a time when many businesses offer free shipping to their customers. Shipping fulfillment is critical during this time, and the packaging you use can make or break your success. In this post, we will discuss the importance of packaging in warehouse management and how it can help you achieve your shipping goals during the holidays!

The Role of Packaging in Warehouses

There are many reasons why packaging is important for warehouse management. Packaging plays a vital role in protecting stored items from damage, keeping operations running smoothly, and managing space efficiently. Below we look at a few of the key roles packaging plays in warehousing.

Damage Protection

One of the most obvious benefits of packaging is that it helps to protect stored items from damage. When products are properly packaged, they are less likely to be damaged by bumps, scratches, or other forms of wear and tear. This is particularly important for delicate items or items that are prone to breakage. Packaging not only helps to keep stored items in good condition, but it also reduces the need for repairs and replacements, which can save the company money over time.

Operations

Packaging can help to streamline operations in the warehouse. By using the right packaging, it can be easier to load and unload items and to keep track of inventory. In fact, packaging can be used to clearly label products and organize them in a way that makes them easy to find and retrieve. This can help to reduce errors and increase efficiency in the warehouse. Furthermore, packaging can help to automate some aspects of warehouse operations, such as inventory management and order picking.

Helps to Manage Space in Warehouse

Packaging can play an important role in managing space efficiently in a warehouse. By using smaller or more compact packaging, it can be possible to fit more items into the same space. In addition, by using packaging materials such as pallets and racks, businesses can make better use of the available space in their warehouses. This is especially important in warehouses that are short on storage space, and it can help to reduce storage costs and improve overall operational efficiency.

Efficient Transportation

Finally, packaging can help to make transportation more efficient and reduce shipping costs. If goods are not properly packaged, they can become damaged during transit, which can lead to delays and costly repairs. Proper packaging can also help to reduce the amount of waste generated in a warehouse, as well as the costs associated with waste disposal.

How to Optimize Packaging in Warehouse Management?

In any business, but especially in warehouse management, it is essential to optimize your packaging process. Below are some tips to consider:

Designate Proper Packing Stations

One way to optimize your process is to use proper packing stations. These stations should be designed for the specific products you are packing. They should also be ergonomic and allow for easy movement of product.

Source the Right Raw Materials

Another way to optimize your packaging process is to source the right raw materials. This means using materials that are strong enough to protect your product, but that are also lightweight and easy to handle. You should also consider using recycled, reduced & reusable packaging where possible.

Integrate Automation

Finally, you can optimize your packaging process by integrating automation. Automated packaging machines can quickly and accurately package products, freeing up your team to focus on other tasks. In addition, automated packaging can help to reduce waste, as you can program the machines to use only the materials necessary. This can help to improve accuracy and efficiency while reducing labor costs.

Get Solutions for Packaging and Warehouse Management with APS Fulfillment, Inc

At APS Fulfillment, Inc., we take great pride in the fact that our quality control procedures are state-of-the-art, and we guarantee 24-hour turnaround times for our service orders. Get in touch with us and one of our consultants will tailor a fulfillment plan designed to grow your business. Book a consultation by calling (954) 582-7450 or email [email protected].

Also Read: What are E-Commerce Order Reshipments?

The terms “inventory management” and “warehouse management” are sometimes mistakenly used interchangeably as they both deal with operations and products within companies in the manufacturing and distribution industry. Despite their few similarities, there are many notable differences between warehouse and inventory management systems.

Warehouse managers and business owners should be aware and understand the differences between the two terms because the type of management system used to track the inventory depends on certain factors that can boost or hold back your company’s profitability and efficiency. Keep on reading to learn what each term means and what features make them different from each other.

In recent years, the media has seen a greater focus on dishonest business practices in the form of reality shows and documentaries. This interest is understandable; people both want to know they aren’t getting fooled themselves and enjoy seeing criminals get caught.

But many times, those criminals aren’t malicious, but simply ignorant, in trouble only because they weren’t familiar with the laws in relation to their business. This is no different for those in product fulfillment, who need to keep their business on the straight and narrow at all times. By doing so, you will save time and money and protect your business’ legitimacy.

Big Leagues

Ah, to go big. You slug it out playing college basketball, and then a scout from the Miami Heat starts chatting you up. Perhaps you’re a lowly repertory theatre actor, and then comes the deal to appear in a big budget movie. Or maybe you’re a small-time inventor and a major company wants to buy your patent.

Even if the above situations sound like silly daydreaming to you, they’re not so hard to imagine in real life.