A warehouse management system (WMS) is one of the key technologies required to create a successful adaptive supply chain networks. In an adaptive supply chain networks, the extended warehouse can respond to a variety of business requirements.
And on the other way,a successfully deployed WMS can turn inventory into a strategic, competitive advantage.You can create a perpetual or continuous inventory in order to keep book inventory continuously in agreement with stock on hand within specified time periods. And you can accomplish reconciliation between book inventory and stock on hand as often as after each transaction.
Cycle counting based on SKU velocity is one method of creating a perpetual inventory. Because you are conducting a daily, or even more frequent, counting, the annual physical inventory becomes a historical reference. Before implementing a perpetual inventory process, have corporate auditors approve the processes involved.
And on the other way,a successfully deployed WMS can turn inventory into a strategic, competitive advantage.You can create a perpetual or continuous inventory in order to keep book inventory continuously in agreement with stock on hand within specified time periods. And you can accomplish reconciliation between book inventory and stock on hand as often as after each transaction.
Cycle counting based on SKU velocity is one method of creating a perpetual inventory. Because you are conducting a daily, or even more frequent, counting, the annual physical inventory becomes a historical reference. Before implementing a perpetual inventory process, have corporate auditors approve the processes involved.
Although it is not mandatory, the best opportunity for converting to a perpetual inventory usually occurs when you are converting or upgrading to a new WMS. During the conversion process, you take a physical inventory not only to compare the actual stock on hand with the system of record and book the variance but also to create a baseline. You compare the baseline with the daily counts. Once the auditors are satisfied that the daily counts are accurate, there is no longer a need for annual physicals because the perpetual counts are correct.
This approach to inventory control provides the following benefits: Increased inventory accuracy ;Reduced labor costs by not conducting annual physical counts, which can add up to hundreds of full-time equivalents per facility and often encroach into overtime costs ;Decreased capital investments in products, with fewer dayson- hand inventory
This approach to inventory control provides the following benefits: Increased inventory accuracy ;Reduced labor costs by not conducting annual physical counts, which can add up to hundreds of full-time equivalents per facility and often encroach into overtime costs ;Decreased capital investments in products, with fewer dayson- hand inventory
Yao Zhou
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