Setting up inventory management is not just "writing down what comes in and goes out". It's a structured process in several steps, from goods receiving to performance indicator analysis. Here are the 7 key steps.
Product catalog referencing
Before storing, you need to know what you store. Each item must have a unique reference, a clear designation, a measurement unit, and ideally a barcode (EAN or internal). Without a clean catalog, everything that follows will be approximate.
Receiving and checking goods
When a delivery arrives: check conformity against the purchase order (quantity, references, condition), record the stock entry (scan or manual entry), and immediately report any discrepancy to the supplier. This is where inventory data quality is built — or degraded.
Storage and location management
A well-stored product is a product you can find. Assigning locations (aisles, shelves, zones) lets you quickly locate an item, optimize picking rounds, and detect location errors during inventory counts.
Recording outgoing movements
Every consumption, sale or transfer must be recorded. This is the most critical step because that's where most errors occur. Barcode scanning drastically reduces forgetfulness and reference mistakes.
Level monitoring and shortage alerts
Set a minimum stock (alert threshold) and a safety stock for each item. When stock falls below this threshold, the system must alert automatically — by email, by notification, or by displaying the item in red on the dashboard.
Physical inventory count and adjustment
Periodically compare theoretical stock (in the system) to real physical stock. Correct discrepancies, analyze their causes. An annual audit is legally required, but monthly cycle counts are much more effective in maintaining data reliability.
Performance indicator analysis
The last step — often neglected — consists in analyzing inventory KPIs: turnover rate, stockout rate, holding cost, dormant inventory value. These indicators help optimize order levels and free up unnecessarily tied-up cash.
Implement these steps with a dedicated software
These 7 steps can be managed with an Excel spreadsheet for a small catalog. Beyond a hundred references or several simultaneous users, a dedicated software like GSE-Web automates each step (ROI simulator) :
- Catalog import from your existing Excel file
- Smartphone barcode scanning for in/out movements
- Automatic email alerts on each threshold shortage
- Guided inventory count with variance calculation
- Dashboard with turnover, stock value, alerts
Start with step 1: build a clean catalog with unique references. It is the basis for everything. Then carry out a starting physical inventory to record initial stock levels. With these two elements, you can start logging movements.
All these steps in a single software
GSE-Web guides your teams through every step: receiving, storage, outgoing, inventory, alerts and reporting — on PC, tablet or smartphone.