Understanding Inventory Management: System Inventory vs. Bin Inventory
In any warehouse or inventory management system, it's crucial to distinguish between system inventory and bin inventory. While both concepts pertain to the tracking and management of goods, they operate differently and serve distinct purposes within the logistics process.
System Inventory:
System inventory refers to the overall quantity of items recorded within the inventory management system. It represents the total count of specific items available for use, sale, or distribution across the warehouse or organization.
For instance, if the system inventory indicates that there are "4x Ashley B200-46" in the Ford Warehouse, it means that according to the inventory database, there are four units of the B200-46 item available for allocation from the Ford Warehouse location.
Bin Inventory:
Bin inventory, on the other hand, provides a granular level of detail regarding the physical location of items within the warehouse. It specifies the exact aisle, row, and bin where specific items are stored.
For example, if the bin inventory states that there are "2x B200-46 on aisle 001, row AA, bin 001, and 2x B200-46 on aisle 002, row AA, bin 002," it means that these items are physically located in these designated bins within the warehouse.
Integration Process:
Integrating bin inventory into the system inventory involves a systematic process to ensure accurate tracking and management of goods. There are typically two approaches to incorporating bin inventory into the system:
-
Transfer Items within Bin Inventory and then Copy Bin Inventory to your Live Inventory (Easiest and Recommended Approach):
- Initially, the items are recorded in the bin inventory to reflect their precise locations within the warehouse.
- Subsequently, a manual process is initiated to transfer the bin inventory counts into the system inventory.
- This involves updating the system database to reflect the actual quantity and location of items available in the warehouse.
-
Take 1st Time Inventory and then Transfer Items within Bin Inventory:
- Alternatively, the items can be first recorded in the system inventory without specifying their bin locations.
- Then, the bin inventory is updated to reflect the exact locations of the items within the warehouse.
- To do this you will Enter 1st Time Inventory, and then you will open up Bin Inventory and transfer all of the items to the correct bins.
Conclusion:
In summary, while system inventory provides an overview of available items, bin inventory offers detailed information about their physical whereabouts within the warehouse. Understanding the distinction between system inventory and bin inventory is essential for effective inventory management, accurate tracking of goods, and streamlined warehouse operations. By integrating both aspects seamlessly, organizations can maintain optimal inventory levels, minimize discrepancies, and enhance overall efficiency in their supply chain processes.