How you manage your inventory in manufacturing impacts all aspects of your business. Working with inaccurate data puts you at risk of running out of stock, which can drive your customers elsewhere when they need something in a hurry. It can also lead to excess carrying costs.
Inaccurate inventory data doesn’t just impact you. It can also signal an inaccurate demand forecast for your suppliers. This puts them at risk of overproduction or underproduction and makes it harder for both of you to meet customers’ expectations.
SKU tracking is an accurate and reliable way to manage your inventory. With it, you’re at less of a risk for phantom inventory that your system thinks is on hand when it’s not. SKU tracking also reduces miscounts and costly stock-outs.
What Is SKU Tracking?
SKU stands for stock keeping unit. It’s a unique identification code that’s applied to every product and allows you to track your inventory. You assign each SKU a tracking number.
Once you’ve assigned each product category an SKU, you add a barcode. You scan this code when you receive an item, when you manufacture a product, and when you ship an item. Each scan updates your inventory system in real time.
Because this system offers automatic updates in real time, it’s more accurate than manual hand counts, which reflect your inventory at only one point in time. Periodic hand counts are also more prone to human error. SKU tracking gives you fewer discrepancies. It also helps you calculate and improve your OTIF score.
Why Inventory Errors Happen More Often Than You Think
If you’re still doing manual hand counts to manage your inventory, you’re probably dealing with frequent errors. Common causes include:
- Misplacements: Without standardized storage procedures, some employees misplace inventory. Asset tracing and risk mitigation can help lower your misplacement rates.
- Data entry: Humans are fallible, and manual data entry is prone to error. Your employees will sometimes make typos when manually entering SKUs, counting and recording on forms, or manually transferring data from written forms into your management system.
- Mislabeling: If someone puts the wrong SKU on a product, your inventory won’t be accurate.
- Siloed systems: If your production, sales, and warehouse management teams are using separate computer systems that don’t communicate with one another, you’re more likely to have inaccurate inventory data.
Errors stemming from inefficient inventory management come with hidden costs. Instead of focusing on current customer orders, your team has to research inventory issues or track down lost or misplaced items. You might also lose out on potential sales if you don’t have an item in stock when a customer needs it.
Switching to a digital SKU tracking system lets you automate your inventory management through an interoperable system. Everyone in your company will always have access to the latest, most accurate data.
How to Track Your Inventory in Real Time With Modern Tools
You have multiple SKU tracking tools at your disposal, such as:
- RFID: Radiofrequency identification tags track items and transmit the data to your inventory management system using radio waves. Since these tags use chips and antennas to communicate, they transmit data immediately. You don’t need to manually scan a code.
- Bluetooth: Similar to an RFID inventory system, Bluetooth tags communicate wirelessly with a sensor or a phone. While RFID tags offer no-line-of-site scanning, a Bluetooth tag should be close to the reader.
- UWB: Ultra-wideband tags are another wireless option for automatic inventory management. Since these tags work through a short transmission, UWB technology offers precise location information.
- Sensors: Sensors transmit data to the tracking device. You can use them in multiple ways to manage your inventory, such as by tagging merchandise or adding weight sensors that signal low inventory based on shelf weight.
Scannable barcodes and sensors automatically capture data in real time, making your inventory management process more efficient. RFID tags and other no-line-of-site solutions are great for high-volume SKU tracking because you don’t need someone in the warehouse to manually scan each product.
The Power of Real-Time SKU Tracking for Error-Free Operations
Modern SKU platforms give you inventory tracking data and analytics by product. Monitoring and assessing your inventory data over time can help you identify trends and patterns for further inventory optimization. You can keep the right levels of a product on hand based on accurate customer demand forecasts instead of carrying too much and paying to store it.
Accurate location data speeds up fulfillment because your warehouse team isn’t wasting time looking for inventory.
When your SKU tracking system integrates with your customer service platform, your customers can track their orders online. This reduces your “where is my order?” calls and improves the overall customer experience.
Practical Use Cases: When Real-Time SKU Tracking Solves Problems
Real-time SKU tracking’s benefits aren’t limited to inventory management. It can also improve other aspects of your business. Consider these examples.
MRO Inventory Management
You need supplies, parts, and equipment to manufacture products for your customers. SKU delivery tracking paired with AI solutions for supply chain management can help you keep tabs on these items to prevent downtime.
For example, you can order and track replacement parts for vital manufacturing equipment based on AI predictions. When it’s time to make the repair, your maintenance team can find the parts using an SKU instead of searching through numerous shelves.
Reusable Container Tracking
Reusable shipping containers are more cost-effective and less wasteful than single-use containers. But you need to get them back to see these benefits. RFID tags and other sensors let you track your containers for faster retrieval.
Just-in-Time Restocking
An SKU tracker that works with your inventory management system can automate your restocking process. You can set a reorder point that triggers the system to generate a new order when your inventory dips below a set level. Instead of carrying excess inventory, you order what you need when you need it to fill orders.
Surgere’s Real-Time Tracking Tools for Inventory Accuracy
Surgere offers RFID, Bluetooth, UWB, and other types of solutions for your warehouse. Our hardware and software integrate with your current operations for accurate tracking and improved visibility. We collaborate with our clients to offer technology that tracks with 99.9% accuracy.
Make your operations more efficient with SKU tracking technology. Contact us today.
