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Material Handling Information - Excessive Inventory Shrinkage
   
Inventory
Excessive Inventory Shrinkage

Damaged product can lead to added costs, a reduction in customer satisfaction, and can be a danger in the warehouse.

Mini Load and other AS/RS systems are closed off to employees to maximize safety and minimize loss.
Problem
  • Paper based tracking of inventory, delayed data entry causes product to be lost.
  • Damage related to items stored in the wrong medium such as product that is crushed because it is stacked on the floor.
  • Lack of warehouse security (unrestricted access to all employees).
  • Lack of training on warehouse procedures.
  • Manually counting large quantities of small parts.
  • "Unit of measure" information is inaccurate.
  • Lack of item verification at pick.
Solution
  • Use a Warehouse Management Software (WMS) with RF technology to:
    • Track inventory in real time.
    • Control access of workers to specific areas.
    • Use container code technology for verification of items and quantity.
  • Provide certification of workers on warehouse procedures.
  • Use scales to count large quantities of small parts.
  • Use AS/RS technology to restrict open access to product.
  • Install physical barriers such as fences, gates, and locks to storage areas containing high value materials.
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