Andy Price, Director Supply Chain & Sustainability at UK-based sheet metal fabrication manufacturer Mec Com, highlights the advantages of adopting new technologies into stocktaking processes and shares the benefits accurate stocktaking has had on the business.
Analogue vs Digital
Before digital tools helped to revolutionise and improve efficiency globally, manual stocktaking was time-consuming and often inefficient.
For Mec Com, the scale and complexity of counting millions of components – particularly small parts – made it challenging to maintain consistently accurate records, sometimes leading to discrepancies that impacted various areas of the business. From order fulfilment to financial reporting, the absence of a comprehensive stock auditing process introduced inefficiencies and delays, with potential financial losses.
As a manufacturer of small parts, relying on a manual stocktaking process for high-volume counts proved increasingly impractical. And, having not completed a full stocktake for several years, the decision was made to adopt a more digitally focused solution to help bring Mec Com into the 21st century and significantly reduce discrepancies across the stocktaking management process.
Benefiting from new technologies
Automated systems like RFID scanners, barcode tracking and cloud-based inventory software provide real-time data, ensuring precise stock control and minimising downtime. By streamlining the process, a business can optimise resource allocation, prevent shortages and improve overall productivity.
Additionally, enhanced traceability helps maintain quality standards and regulatory compliance. As the industry moves towards smarter, technology-driven operations, embracing these innovations is crucial for businesses looking to improve inventory efficiency.
Bringing in more advanced stocktaking capabilities can also optimise workflows and increase productivity, freeing up staff for higher-value tasks and ultimately reducing employee downtime.
A helping hand
Beyond just the technology, Mec Com found that third-party providers can help reshape inventory management – something that is particularly useful when handling millions of components.
Recognising the need for a comprehensive and efficient stocktake, Mec Com enlisted the help of inventory management specialists, RGIS. With over seven million parts to count, RGIS provided the people and the technology to conduct a warehouse stocktake – across two sites – in just three days, ensuring precise inventory records and improving operational efficiency.
Using RGIS Vision – an optical character recognition (OCR) software – the experts were able to deliver a much faster and more accurate audit than traditional manual methods. This technology can scan part numbers, product codes and barcodes, enabling auditors to achieve faster and more accurate results than a manual in-house stock take.
The partnership enabled a full reconciliation of the company’s stock records, identifying discrepancies and rectifying errors that had built up over the years. The use of technology not only reduced the time required for stocktaking but also minimised the risk of human error, providing a clearer picture of actual stock levels in real-time.
In fact, the audit of 7,600,000 pieces of inventory resulted in a £10,000 stock gain, demonstrating a true financial benefit of accurate inventory management. With more than 70 experts deployed by RGIS, Mec Com’s own team were able to continue with their day-to-day tasks, helping to reduce disruption across the business.
Beyond the count
While stocktaking may often be perceived as a burdensome task, the benefits of investing in modern technology and expert inventory management solutions far outweigh the costs.
For businesses looking to improve their stock control, adopting stocktaking solutions such as those provided by RGIS can be a game-changer. By leveraging technology, Mec Com achieved greater accuracy, efficiency and financial stability – all of which are crucial in today’s competitive market.
Mec Com’s journey from outdated stock records to streamlined, high-accuracy inventory management serves as a valuable lesson for manufacturers and businesses of all sizes that investing in professional stocktaking solutions can lead to long-term operational success.
