Do you work for a government organization? How efficient is your government inventory system? Many companies and organizations have a difficult time keep organized and efficient government inventory management systems. When this happens, inventory tracking can fall behind causing inventory to pile up. This can cost companies and organizations quite a bit of money and time. There?s no reason not to have the most efficient systems in place to keep inventory moving along.
Interested in learning more about some issues that exist with inventory tracking at companies? Keep reading for more information about reasons to automate inventory.
The State of Inventory Across the Country
Believe it or not, there is more than $1 trillion in cash that is tied up in inventory throughout the country. Statistics show that is similar to 7% of the United States GDP. There?s really no reason for this to be the case. However, the more warehouses that pop up, the more opportunity there is for inefficient systems to be set in place causing more inventory to pile up. In the last five years, warehouses in the United States have risen by more than 6%.
In some areas of the warehouse industry, processes have become more efficient. For example, shipping and manufacturing are more established systems. They can move faster, cost companies less money, and make the best use of everyone?s time. Inventory doesn?t fit in the same category. Companies continue to hold onto more items as the years pass. In the last five years, it has risen by more than 8%.
Even though many companies claim they hope to find better ways to manage inventory, this has yet to be seen and properly executed. More than 60% of warehouses hope to use mobile devices to be manage government inventory in the long run. By switching to some type of mobile platform or warehouse management systems, perhaps some of these issues could be resolved eventually.
Benefits of Using a Government Inventory System
With most warehouse management systems, errors can be decreased by as much as 70% when they?re used properly. When you have so much inventory piling up and so many different orders to fill, there?s no guaranteed way to be entirely error-free. However, by attempting to set up systems and processes that focus on organization and efficiency, you can at least reduce the risk for errors and become a more stable warehouse.
When your warehouse operates more efficiently, it can also save you money on operating expenses. If you aren?t organized and your company is making a lot of errors or overstocking inventory, this can end up costing your company more than originally planned. By simply using a system to manage it all better, you can get back to your normal costs and then look for ways to further cut costs in the future.
Has your company or warehouse considered using a inventory tracking system or warehouse management system to improve operations? What types of inventory tracking software do you plan to use? Let us know in the comments about your experience becoming a more efficient company.