Have you heard of inventory addressing? This process is considered the basis for operational efficiency, since makes it easier to locate products within the stock. As managers began to understand the importance of logistics to the business, they began to detail these activities to measure their efficiency.
However, it is necessary to take a step back and discover what these addressing systems are and how they are applied in everyday life.
What is inventory addressing?
Logistics addressing, as it is also called, is a system that facilitates some steps in supply chain management. Among them, storage, maintenance, counting and picking. In general terms, it is a location system that indicates the position of each product within the stock.
However, simply implementing it isn't enough. For inventory addressing to be truly effective, it needs to follow a simple, logical methodology—everyone needs to understand its methods. Otherwise, it can cause more harm than good.
Inventory addressing: what are the most commonly used methods?
There are three most commonly used methods in addressing systems:
Fixed addressing system
Also known as a fixed location, this inventory addressing has a set pattern. Even if a particular product is unavailable, the space remains empty, awaiting future acquisition.
The positive side is that this system provides a visual analysis of product turnover. On the other hand, it requires a large storage capacity, as it requires space for all the items.
Rotary addressing system
Among addressing systems, this is known as chaotic or random location. As the name suggests, no product has a fixed place to be stored. The advantage is space optimization, a plus for smaller spaces. However, managers must be concerned about the constant need to update inventory addresses.
Mixed addressing system
It comprises the two systems previously mentioned. In this case, it is necessary consider product characteristics and turnover rates. When opting for this system, the company requires great precision and constant updating of the address in the company's system.
Now that you know the different addressing systems, you can study which one makes the most sense for your business. You can check it out all Bertolini solutions and see which one best fits your company.
