Knowing your product locations pays big dividends for most companies shipping perishable goods. With perishable goods, product rotation is key to managing quality and minimizing waste or donations due to product aging. Additionally, tracking product locations offers several benefits that impact the entire organization.
Sales – Your sales team needs to know what is in stock and available to sell. In food product retail and food service companies, orders are often restocked in stores or restaurants. When you short ship, they can’t fulfill their orders, which means stores or restaurants may run out of products. This creates unhappy customers who have alternate options. At a minimum, short shipments damage the goodwill of your customers; repeated occurrences will often cost you their business.
Finance – When your staff can’t find the ordered products, they may need to substitute another product. If the customer has not pre-authorized the substitution, you could be facing product rejections or chargebacks. In addition to issuing credits, your people are spending time and money resolving the issues.
Operations – How your product locations are tracked will vary by the size of the facility and the nature of your business. For instance, if everything is packed and shipped the day it is received, the bulk product is probably all in one or two rooms, and the packed product is shipped or staged for shipment the next day, so product locations are easy to see. As the size of your facility and the number of products stored grows, so does the level of the systems needed to keep track of the inventory and locations. All systems are as good as their last update; having a fast electronic way to record inventory updates is best.
That is not to say a manual system can’t work; it just means the level of effort to maintain accurate inventory is high. I once visited a table grape facility a few years ago that had inventory workers stationed in the hallway. When one or more pallets of grapes were brought into or removed from the room, the worker grabbed the clipboard hanging outside the door and wrote down the pallet number and quantity stored or removed. At the end of the day, someone would key this into their inventory system. The customer did have accurate inventory at least once per day, but the amount of time spent managing the system was higher than the value derived.
The Benefits of Electronic Inventory Systems
By moving to an electronic inventory system that updates inventory in real-time, you position your company for higher accuracy, less donation or waste, and ultimately higher customer satisfaction. What does such a system look like? It starts by having inventory software that can be updated in real-time, providing access to that system to those whose jobs are affected:
The ability to accurately track product locations is crucial for companies dealing with perishable goods. It ensures efficient product rotation, minimizes waste, and enhances overall customer satisfaction. While manual systems can work, they require significant effort and are prone to errors.
Transitioning to an electronic inventory system not only improves accuracy and efficiency but also provides real-time updates that are vital for sales, operations, and quality control. Investing in such a system positions your company for success by reducing waste, enhancing customer satisfaction, and ultimately increasing profitability.
Ready to improve tracking for your product locations? Read more about implementing a modern electronic inventory system (link to blog post next page) and learn more about MyProduce software here.
For 27 years, RedLine Solutions has been the trusted partner in inventory and traceability for fresh produce stakeholders across North America. Serving a myriad of commodities, we tailor solutions to your workflow. Our offerings, from hardware to software, coupled with deep expertise, ensure your produce operations management is in the best hands.
