Maintaining proper inventory is essential for reducing costs and maximizing profits. To improve the efficiency of inventory management, it is effective to introduce an IT system that manages machines instead of human hands. In this article, we will introduce what an IT system for warehouse management is, taking into account its functionality, merits and precautions to be introduced.
Purpose and problems of inventory management
What is the purpose of warehouse management? Also, I am worried that there may be troubles or problems in inventory management. For those who manage inventory from now on, I will introduce the purpose and problems of inventory management.
What is the purpose of inventory management?
The purpose of inventory management is to maintain proper inventory. Inventory management makes it possible to properly manage the inventory of raw materials, work-in-process, products, etc. that exist in a company from arrival to shipment in light of activities such as production and sales. Maintaining proper inventory will reduce unnecessary costs and maximize the profits of the company.
Problems in conventional warehouse management
In the conventional warehouse management, there were many cases where it was done manually by using Excel or the like. However, with manual inventory management, problems such as human error are likely to occur, management quality varies, and data and inventory status do not match. By introducing IT and systematizing it, human error can be prevented and it will lead to more accurate inventory management.
Basic functions of IT system for inventory management
We will explain the basic functions of the IT system for inventory management.
Entry / exit management function
The warehousing/delivery management function is a function to support the products scheduled to be received/shipped and the inspection work for them. For example, when a product is stored, a barcode containing product information is issued to manage warehousing and delivery. In addition, it is equipped with functions such as automatically managing both in-stock and shipped products on the system.
Inventory list function
The inventory list function is a function that allows you to manage the number of inventories from any perspective, such as for each product or storage location. With the inventory list function, it is possible to create a picking list and extract only shipped product data.
Inspection function
The inspection function streamlines the inspection work of products received and shipped. For example, you can check the actual number of products, the number on slips, items, etc. by using a handy terminal or tablet, and reflect the read data in the system. Since the inspection work can be semi-automated, it contributes to reducing the burden on the person in charge of the work.
Return management function
Inventory information can be confusing if the response to returned products varies from person to person. The return management function unifies return management and prevents the information from becoming complicated.
Inventory function
The inventory function is to check if there is a difference between the actual inventory and the inventory data on the system. By linking the system with a handy terminal, etc., the efficiency of inventory work can be improved.
Inventory analysis function
The inventory analysis function analyzes the arrival, shipment, and inventory data from the past to the present. The inventory analysis function can be useful for forecasting demand in the market and calculating inventory lead times.
Data extraction function
The data extraction function extracts inventory data, etc. from any cut. Data analysis can be further promoted by using functions such as BI tools that cooperate with the outside for data extraction.
Master management function
Master management is a function that centrally manages information (master data) such as customers, employees, and products. Data management efficiency is further improved because data can be registered for inventory classification, storage space, business partners, system personnel, and so on.
Benefits of introducing an inventory management system
Introducing an IT system is effective in solving problems such as human error and variation in quality control. Let’s take a look at the benefits of introducing an inventory management system.
Cost reduction is possible
If the work becomes more efficient by introducing the system, it will be possible to work with a smaller number of people in a shorter time than before, and it will be possible to reduce labor costs and other costs.
Visualization of inventory status
If you can see the receipt / delivery data immediately, you will be able to instantly grasp the inventory status in real time, and you will be able to quickly place orders for inventories that are likely to be out of stock.
Improvement of work efficiency
Human error can be prevented by introducing an inventory management system, such as information can be obtained simply by scanning the barcode with a handy terminal. In addition, it will be possible to simplify the work, which will make the work more efficient. Furthermore, by utilizing handy terminals and IT, it is possible to perform a certain level of work without relying on experts or beginners, and it is possible to standardize work without depending on individual experience.
Precautions when introducing an inventory management system
Although an inventory management system is convenient, it does not always give good results once it is introduced. Then, what kind of points should be carefully introduced? This item introduces the points to note when introducing the system.
Clarify the purpose of introduction
Even if the system is introduced without understanding the current situation, the expected effect may not be obtained, and there may be cases where the site is confused and troubles occur, which has a negative effect.
Before deploying the system, first understand the current problems so that the deployment will proceed smoothly.
The balance between necessary expenses and issues is important
The most important point when adopting an inventory management system is whether you can get results that are worth the cost. Please note that the larger the system, the more costs will be incurred. Also, analog management can save you money, but it can also be expensive. In order to introduce the system, it is necessary to consider the balance of cost-effectiveness.
Consider introduction in consultation with the site
If the system introduction is left to the vendor, it may be far from the actual operation. Therefore, it is important to consult with the site and discuss the problems and issues before introducing a system that suits the application.
About the free version of the inventory management system
There is a free version of the inventory management system, which you can use for trial purposes. However, in the case of the free version, not only is the functionality of the product inferior to the paid version, but there are also cases where security is inadequate, so it is necessary to take measures in-house. Also, even if it is free, there are cases where you have to prepare the tool for inputting yourself, which may take extra effort and cost, so you need to look at the total balance when using it.
Key points when choosing an inventory management system
What points should I be aware of when choosing an inventory management system? Here are some points to consider when choosing an inventory management system.
Recommended is cloud management type
There are two types of inventory management systems: cloud management type and non-cloud management type.
Since the cloud type inventory management type does not require system development or infrastructure procurement, it can be introduced quickly at a lower cost than the non-cloud management type that requires in-house server management and development.
Check compatible devices
The inventory management system has some useful features, but it doesn’t make sense if the model doesn’t support your device. For example, if the terminal can use a browser, the inventory management system can be used in various crises, but some terminals cannot be used depending on the supported OS, so it is necessary to check before introducing.
Presence or absence of consultation desk
Since the inventory management system entrusts the company’s data to the outside, it is safe to have a contact point where you can consult with us immediately if you do not understand the operation when something happens. It is also important to check that the server is maintained daily. Cyber attacks change hands every day and approach important data. It is a good idea to check in advance whether the server operating company that uses the inventory management system frequently publishes maintenance information.
UMWELT is recommended for the introduction of an inventory management system!
The inventory management system is a cloud-based system that does not cost money, and it is safe to have a free consultation desk. Therefore, I recommend her UMWELT of TRYETING, which is a no-code AI cloud.
There are many scenes to play an active part
UMWELT enables the construction and maintenance of the optimum system for the company by standardizing the data format that differs for each company. Since it is possible to build a system that suits the company, it is possible to introduce a system that suits the company, such as the scale of the business, the number of products handled, the purpose and usage. Therefore, it can be used in a wide range of fields such as demand forecasting, shift management, inventory management, material development, and DX. In addition, you can receive support from dedicated staff during the introduction and operation phases.
Can be introduced at low cost
UMWELT is a subscription service, so you can keep costs down at low cost. The usage fee of UMWELT is the lowest in the industry, and it is a fixed monthly fee, so you can use it with confidence in terms of cost. In addition, UMWELT has flexible plans according to the purpose, so you can use it without waste.
Equipped with educated AI, no hassle
UMWELT provides a wide range of functions required for AI introduction and construction. UMWELT has a number of algorithms. By freely combining these algorithms like Lego blocks, anyone can easily build and manage the AI system they are looking for. For example, it is possible to build an inventory management system linked to demand forecasting using AI.
UMWELT is also equipped with a function that simplifies the pre-processing of data, which accounts for 80% of the time when AI is introduced, and since it does not interfere with the existing system, PoC and this introduction will not fail. Since the AI engine that has already been proven can be used, more accurate effects can be expected.
Summary
By systematizing inventory management, it can be useful for improving the efficiency of inventory management operations and maintaining proper inventory. We especially recommend a cloud-based system that can be started at low cost. If you want to systematize inventory management, why not consider UMWELT, which is provided by TRYING.