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Inventory

7 things to know before implementing an inventory management system

By Rattusapps·7 min read·September 2021

An inventory management system sits at the centre of the order-fulfilment ecosystem — from sourcing and stock control to shipping and returns. Before you invest, a few considerations decide whether that money returns value or evaporates. They go well beyond a financial audit.

Why inventory accuracy matters

Multi-site retailers and e-commerce operations rely on accurate, shared stock data to balance supply and demand across locations. Without it, teams lose time chasing products they can't locate and shelves swing between overstock and stock-out. Here's what to settle first.

1. Pick the right technique

ABC, FEFO, FIFO, LIFO — each suits different goods. Match the method to your product dynamics so space is optimised and waste is minimised.

2. Plan for integration

A centralised system only delivers if it connects to your other tools. Integration gives the end-to-end visibility that makes inventory data trustworthy across the supply chain.

3. Set up clear SOPs

Document every step of how the system is implemented and operated. A solid standard operating procedure becomes the reference that keeps performance consistent as teams change.

4. Know your stock levels

Understand your stock in and out — features, demand, sales velocity — and set reorder thresholds so the system flags replenishment before you run short.

5. Train your staff

Your people are the asset that makes the software pay off. Train them on the new methods and SOPs before go-live; monitored, well-trained teams waste far less time and money.

6. Re-think the warehouse layout

Layout is often neglected and expensive to get wrong. Make sure aisles fit your equipment, fast movers are reachable, and vertical space is used — then review the layout at regular intervals.

7. Define actionable KPIs

Set the metrics you'll judge the system against — accuracy, turns, dock-to-stock, order accuracy. Without KPIs, the investment sails without a compass.

Choose deliberately

Implementing a new system is demanding, but weigh these factors evenly and the right inventory management system — like RattusWMS — returns a healthy ROI over the long haul.


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