January 2013 ISI Insider
Inventory management is vital to an effective fast lube operation. The purpose of inventory management is to know what products you have on hand, where they are in use, and how much is being sold. It is the accuracy of this data that drives the success of your inventory process. Even with the most comprehensive inventory management system, if the data isn’t accurate your inventory control is compromised.
Let’s look at two specific ways you can boost accuracy in your inventory management process.
1. INDEPENDENT COUNTS
Have a trusted employee make the first count and then have a second count taken. Compare the two counts and verify any discrepancies with a third count of the item. By tightening up the independent count system, you will be better equipped to accurately identify and track inventory.
2. CYCLICAL COUNTS
Inventory is traditionally counted at the end of the month. By integrating daily counts into the inventory process by choosing a selected category to count each day (ex. count all fuel filters on the first Tuesday of the month), you can increase accuracy and provide a higher level of inventory awareness. By scheduling a regular daily inventory count, you can cut down on mistakes and increase employee involvement.
For more information on how to move from a month-end to a cyclical inventory system, please visit: https://www.ints.com/category/isi-expert/inventory-control.