As an employee appreciation night activity I had the employees pick a topic and then best describe it in a couple sentences. For me, it always helps having these concise descriptions when it comes to providing content to our end-users. Eric chose “inventory management techniques.”
I had never before seen (or felt) the passion for inventory control that Eric displayed in the next 5 minutes.
“That’s not minus 310. I can feel that”
It’s not uncommon for an end-user to be in denial about their current inventory management techniques – especially when it comes to implementing an ERP. This usually stems from anxiety concerning costs, organizational disruption, employee adoption, and the acceptance that your current strategy isn’t going to cut it.
Upon evaluating an end-user's current inventory management techniques one day, Eric was cross-referencing physical inventory counts with the inventory counts that were logged in the system. The end-user was convinced that the system was correct, that item X was out by 310 units. In order to demonstrate this to the end-user, Eric found item X on the shelf, picked up the container and said, “That’s not minus 310. I can feel that.”
“What does FIFO mean, again?”
FIFO, a common inventory management technique, is an acronym for “First in, First Out.” To put it simply, the first item to be stocked on a shelf will be the first item off the shelf. This is a phrase that every fast food frequenter hopes is a part of a food distributor’s vocabulary. I can see why Eric would be passionate about this phrase.
When evaluating the inventory management techniques of a food distributor, things like perishability and spoiling prevention should be a priority . If you are a food distributor, seeking help with your suffering inventory management techniques, and you ask, “What does FIFO mean, again?,” then it is safe to say you qualify for a makeover.
Quit Lying about the value of your Inventory Management Techniques
As you can see, more often than not, end-users will fib about their current inventory methods. This is why an ERP is more than just software; it is a complete re-evaluation of your organization’s processes.
People like Eric, who have walked through hundreds of facilities, knows poor inventory techniques when they see it. Inventory management cannot be bought in a box at Fry’s--it’s a process that involves “Changing a Culture;” a readjustment of processes that align with current demand and changing technology.
