Managing Thousands of SKUs with an Efficient Inventory Management System

Managing such a large number of SKUs poses a significant challenge. Companies must ensure the right product is available at the right time, avoid overstocking, and maintain operational efficiency. With such a diverse range of products, businesses need advanced inventory management systems to remain competitive.

How do these companies manage their inventories efficiently?

Manual inventory management becomes inefficient and prone to errors as the volume of SKUs increases. Based on surveys from commsult clients, businesses handling between 500 to 1,000 SKUs often experience disruptions when using manual processes.

This is due to the numerous tasks involved, such as data entry, tracking, and overall stock management. At this stage, manual inventory management is no longer able to meet operational needs or provide real-time data.

When SKU counts surpass 1,000, it becomes crucial to adopt an automated inventory management system. An inventory management system is a digital solution designed to help companies manage stock efficiently, track the movement of goods in real-time, and minimize errors in stock recording and management.

There are several critical modules within inventory management systems, such as Warehouse Management (WM) and Material Management (MM). These modules play a vital role in ensuring smooth and efficient warehouse operations.

Material Management (MM) oversees the entire flow of materials within a company, from receiving raw materials to shipping finished goods. It ensures that the right materials are available at the right time and in the correct quantity to support production processes and meet customer demands.

Key features of MM include:

1. Goods Receipt : Receiving goods into the warehouse.

2. Internal Goods Issue : Adjusting stock for internal needs.

3. External Goods Issue : Dispatching goods to customers.

4. Production Supply : Supplying materials for production.

5. Production Backflush : Reporting finished goods from production and recording the materials used.

Warehouse Management (WM) controls all warehouse operations, including the placement, retrieval, and movement of goods. This system organizes large warehouse spaces by managing sections by rack, with real-time location data available. The WM module helps companies execute logistics processes more effectively and efficiently.

Key features of WM include:

1. Picking: Selecting items for shipment.

2. Put Away: Storing materials for production.

3. Stock Transfer: Recording finished goods from production and tracking material usage.

As the volume of SKUs grows, integrating Material Management and Warehouse Management is the best solution. This system not only ensures every item is accurately recorded and tracked but also provides companies with real-time visibility into their stock. This is crucial for improving operational efficiency and ensuring that customers always receive the products they need on time.

For companies like Ace Hardware, Indomaret, and Carrefour, which manage thousands of SKUs daily, an advanced inventory management system is essential. This system enables efficient stock management, streamlining operations while supporting future growth and business expansion.

commsult Indonesia offers fully customizable and integrated inventory management systems tailored to your unique business needs and operational processes. With global experience and proven technology, we help companies improve operational efficiency through the right digital solutions.

Maximize your inventory management with solutions from commsult Indonesia.