Control Material by Reconciling Your Warehouse Inventory
When you go to the shelf to get an item for issue, have you ever been surprised by what is; or is not there? Does your computer database say you have a quantity different than what is actually on hand? If that’s the case, you will need to perform a Material Reconciliation Assessment to get your inventory system back in line.
So, “What is a Material Reconciliation Process?” How do we conduct one? What do we need to do with the information once we get it? The process is fairly simple to set up and implement. The benefits you get back will far outweigh any upfront time and resources expended. With that said, let’s get started.
You will first need to conduct and document the results of a physical material inventory. Yes, count and list the actual number of widgets in the bin, warehouse and yard area. Then you will need to print out a list of material from your computer database of each widget, quantity and physical location.
With this information in hand, you will need to make a comparison between the two, and adjust the counts accordingly. This will ensure you have an accurate count of material on hand, as well as the actual cost of all material within your material inventory system.
Finally, determine the appropriate inventory levels; which will help minimize restocking delays and costs, reduce the number and value of your inventory; thus helping to increase your bottom line. If you do not have a material assessment process, consider utilizing an audit consultant to assist your team, or perform this for you, so that you can focus on what’s most important to you - your customers.
At Storti Quality Consulting, we take pride in helping our customers use quality management practices to enhance results and increase profits. If you’d like to talk about Quality, please call us at 215.657.0837, send an email to ralph.storti@storticonsulting.net, or visit our website, www.storticonsulting.net.
