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One of the dilemmas of today's businesses is how to effectively manage inventory. Poor warehouse control will easily lead to confusion and loss of goods, causing economic losses.So what is inventory management? What are the most effective ways to manage inventory today? Let's find the answer with Estuary through the article below!1. What is warehouse management?Warehouse is a place to gather, store and preserve goods of businesses and stores. Warehouse management includes jobs related to how to organize, arrange goods, report the quantity of goods continuously to ensure the operation of the business.Effective warehouse management helps the process of manufacturing, supplying and distributing equipment and products at the right time, contributing to reducing circulation costs and optimizing the use of warehouse facilities.2. Why do you need inventory management?Equipping with thorough knowledge in warehouse management will avoid the loss of goods, errors in inventory, etc. Goods are the assets of the business. If you are not careful in managing your warehouse, your business can suffer heavy losses, even pile up debt.Therefore, effective warehouse management will help businesses:2.1 Preventing loss of goodsThe situation of goods loss comes from many different reasons, from subjective to objective. For example:<ul><li>Goods are broken, moldy, lost due to improper storage</li><li>Theft by the buyer</li><li>Salesperson, warehouse stealing, embezzlement of public funds or goods</li></ul>Therefore, regularly checking and comparing the quantity of goods sold and the amount of inventory will help businesses avoid significant losses and have an appropriate import plan.2.2 Cost savingsEffective goods management also helps businesses understand product information, know which items are selling well, selling slowly or potentially backlog so that they can make appropriate business plans and solutions. inventory decision.In addition, early detection of large inventory products that consume a lot of storage costs will help businesses take measures to release and transfer inventory in time, reducing unnecessary storage costs. At the same time, it helps businesses save a significant amount of money from buying and preserving goods.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/cdd86975-228d-4797-b43c-07b786d9ae9a"><figcaption>Efficient warehouse management helps to save time to pick up goods &amp; settle inventory</figcaption></figure>2.3 Easy to store goodsWith fragile goods or agricultural products, if not well preserved, they will be easily damaged and lead to great losses for businesses. Therefore, a professional warehouse management process will help your business classify, arrange and track goods information to have a suitable preservation plan and minimize damage.2.4 Turning capital is easierWhen importing any product for sale, a certain amount of capital must be used. If the warehouse management is not good, the inventory is too much, which means that your capital is also stagnant, not only making it difficult for the business to grow, but also causing losses. Therefore, the effective management of goods will help businesses easily balance and keep the inventory turnover rate high, thereby avoiding the situation of damaged or expired goods.3. Basic warehouse management processIn fact, there are many businesses that are still facing many difficulties and obstacles when implementing warehouse management. To manage inventory effectively, businesses need to master the following steps:<ul><li>Import goods: Importing goods is the first step in the warehouse management process and also the most important step to help manage goods correctly. These are jobs related to import procedures. This requires the manager when making vouchers to comply with fire prevention and warehouse safety rules. Ensure goods are carefully arranged, in accordance with the rules, to avoid causing mold and breakage.</li><li>Dispatch: Including work related to procedures, signing of release papers, ensuring goods are delivered on the specified date and time.</li><li>Inventory: It is a step to monitor the status of goods in the warehouse such as shortage quantity, inventory, preservation quality.</li><li>Reporting: This is an important step in inventory management. Thanks to the reported data, businesses can give timely instructions such as missing goods, selling at a discount to settle inventory or change processes...</li></ul>Depending on the size and quantity of goods, the warehouse management process and goods management of each business also change. You need to base on the actual situation of your business to be able to adjust accordingly.4. How to effectively manage warehouses to prevent loss of goodsTo manage inventory effectively, you can refer to some methods below:4.1 Organize the goods in the warehouse scientificallyIn warehouse management, the scientific arrangement and arrangement of goods is one of the factors that help save warehouse space, increase labor productivity along with convenient export, management and control. easier. When goods are logically arranged, warehouse staff can save time in searching for goods, transporting goods, entering and leaving warehouses... faster.4.2 Adhere to the first-in-first-out ruleThe rule of first-in-first-out can be easily understood, which means that the items that are entered first need to be output first. This rule is commonly applied when dealing with items with a short shelf life; perishable; easily outdated…4.3 Save barcodes for productsSaving product barcodes helps businesses find and manage inventory quickly and efficiently. When goods have barcodes, the storekeeper only needs to use a barcode scanner to scan the code on the product to be able to add changes in inventory - stock quickly to the warehouse management software, avoiding errors due to incorrect input. data of goods when made by hand. You can enter barcodes manually on Excel or use professional warehouse management software.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/5cff2437-34ef-4172-adae-f0eb54a1166f"><figcaption>Paste barcodes for easy product route tracing</figcaption></figure>4.4 Sort row type alphabeticallyThis arrangement will help warehouse staff easily control how the stock is in the condition. You can categorize goods by groups such as:<ul><li>A: High-value products but slow sales</li><li>B: Moderately priced products with average sales</li><li>C: Low value product but high selling frequency</li></ul>4.5 Apply software to manage inventoryCurrently, there are quite a few businesses that still use books or Excel files to manage goods in the warehouse. However, this method is becoming obsolete and makes the management time-consuming, labor-intensive and prone to errors.Therefore, warehouse management by software and systems is becoming the first choice of many businesses because of its high efficiency and accuracy.<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/">Estuary</a> is a digital transformation company specializing in providing smart warehouse management solutions trusted by many businesses.<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/services/smart-warehouse-management-system">Smart Warehouse Management System</a> will support businesses:<ul><li>Support to manage multiple warehouses in many different locations</li><li>Controlling, updating information on importing goods, returning NCC goods, moving between warehouses quickly</li><li>Check inventory quickly with just a few simple steps, support using barcode scanners</li><li>Automatically calculate inventory value by month</li><li>Import and export management</li><li>Update reports, detailed warehouse statistics about goods</li></ul><figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/355362ae-8bac-439c-bf18-290b0cd197e2"><figcaption>Track warehouse information anywhere with smart warehouse management system SWMS</figcaption></figure><a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/">Estuary</a> helps your business track all business processes from import and export to inventory statistics. You only need a smartphone or a computer to know the work progress anywhere, at any time to make quick and appropriate business plans and strategies.Warehouse management is a very important job because it determines the success of the business now and in the future. The above article has helped you answer the question of what is warehouse management and the most effective way to manage inventory to avoid loss of goods. Hope this information will be useful to you.Wish you successful business!<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/contact">Sign up for a free consultation on smart warehouse management system here</a><figure class="image"><a href="https://estuary.solutions/vi/contact?msg=Y%C3%AAu+c%E1%BA%A7u+Demo+H%E1%BB%87+th%E1%BB%91ng+Qu%E1%BA%A3n+l%C3%BD+kho+th%C3%B4ng+minh&amp;service_id=6" target="_blank" rel="noopener noreferrer"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/58897dcc-81bd-47d7-8e1f-d3afe7a18c71"></a></figure>

What is warehouse management? How to effectively manage inventory to avoid losses

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Effective warehouse management helps the process of manufacturing, supplying and distributing equipment and products at the right time, contributing to reducing circulation costs and optimizing the use of warehouse facilities.

What is warehouse management? How to effectively manage inventory to avoid losses

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