Annual Physical Inventory (24+ Year Project)
Management Consulting • Training & Research • Supply Chain • Agile • WMS/ERP
Transforming Operations. Delivering Results. Empowering People.
Alexandria, Virginia | DC Metro Region | National
Annual Physical Inventory Process Improvement
Background:
Previously, annual physical inventory required a three-to-four-day facility shutdown across North American sites, incurring over five million dollars in costs and lost revenue. Corporate personnel traveled extensively to support the process, further increasing expenses.
Assessment of Existing Practices:
Having participated in prior counts, I observed inefficiencies, including the use of triple-layered tickets and manual verification steps. The pilot site still relied on outdated data collection units, and count assignments were staggered.
Proposed Solution:
I recommended leveraging the newly installed WMS infrastructure and barcode scanners. Programmers were engaged to develop an inventory model based on the WMS system.
Implementation and Results:
Inventory times improved significantly, with completion in one day—a 200–400% improvement. Dynamic barcode ticket generation and pre-counting procedures streamlined the process. Travel time and related expenses decreased, and scannable labels enhanced accuracy. Plants resumed production immediately after a post-count, eliminating previous downtime costs.
Project Endorsement:
The Vice President of Operations approved organization-wide deployment. The initiative became part of my project portfolio.