October 19, 2020

5 Ways to Drastically Reduce Inventory Write-Offs

Author: Stockpile Reports

Write-offs are a painful result of many factors, but some of them are within your control. Stockpile Reports helps companies just like yours eliminate write-offs by making changes and following some best practices:

1. Double-check your data

You have data about your inventory coming in. Before you use the data to make operation, sales, or other business decisions, we recommend double-checking the data to ensure on-ground stockpile levels match what’s on record. If there are any discrepancies, you can avoid a major write-off. Double-checking your data doesn’t have to be hard – you can use Stockpile Reports’ drones, fixed-cameras, and the iPhone app to generate accurate stockpiles reports on-demand.

2. Monitor frequently – and automate

Inventory levels will go up and down, depending on the supply, demand, weather, market conditions, and countless other factors. The only way to avoid problems during crunch-time is to know exactly what you have on hand at any given point in time. Relying on out-of-date data from 3 months ago could cause numerous hiccups in the supply chain, all of which will affect your investment. Constantly monitoring your material levels is the only way to stay on top of changing conditions. You can automate the whole process by teaming up with Stockpile Reports.

3. Implement better stocking practices

Are you ordering only when you’re about to run out? Do you order too much or too little? By implementing a more structured, disciplined stocking practice, you can avoid problems like stock-outs and obsolete inventory. One way to do so is to come up with a reordering threshold, keep track of your inventory levels, and order immediately when the threshold is reached. Another is to create a Vendor Managed Inventory (VMI) system with your supplier, which will automate the stocking. You can work with SR to create such a system.

4. Upgrade to an automatic measurement system

Traditional measurement methods involving equipment like belt scales, lasers, man lifts, and surveying teams are doubtless effective, but they are slow and expensive. Further, they depend on human input, which may cause errors. Thanks to recent strides in technology, you have the option to upgrade to an automatic measurement system. This involves using a combination of fixed cameras, drones, and an iPhone app to measure your stockpiles and to get accurate measurement data within hours. You’ll be able to get reliable information every time at a reduced cost, regardless of your location.

5. Verify on-the-ground stockpiles and deliveries

How do you deal with theft and supplier fraud? If you can’t train cameras on your piles or install security systems, monitoring your stockpile levels frequently should clue you in on whether your inventory is vanishing. If it’s not the weather or spillage, then it could be theft. Further, you can verify incoming deliveries to make sure you’re not being shortchanged. By using SR’s iPhone app, any employee on your site with an iPhone can generate an accurate volume report in a short time simply by walking around the pile with the camera focused on it.

Conclusion

You won’t be able to eliminate all write-offs– especially unavoidable ones like floor loss and spillage. But through some savvy management practices and the use of modern technology – like Stockpile Report’s instant measurement system – you can reduce the majority drastically. It will lead to significant savings yearly, with only a reasonable amount of effort on your part.

Reach out to learn how SR can assist your unique business in reducing write-offs with our industry-leading technology.