1st Quarter Physical Inventory

[Dave Smith]

Not the most sexy project but absolutely critical to our business is quarterly parts inventory. The crew is working on this big project until the end of this week so if the phones are a bit slow, please bear with us… We’ll be at full strength on Monday. Shipping is open today (Wednesday) but will be closed tomorrow and Friday.

http://www.factoryfive.com/wp-content/uploads/2012/03/51.jpg
Meredith is taking charge of the inventory project

http://www.factoryfive.com/wp-content/uploads/2012/03/21.jpg
"Classic " Brian is doing the tough work of parts counting and scales set-up

http://www.factoryfive.com/wp-content/uploads/2012/03/61.jpg
Eddie and Chris just learned how much they have to do in only three days!

http://www.factoryfive.com/wp-content/uploads/2012/03/11.jpg
Paul is a packaging expert and he LOVES physical inventory. (joke there).

http://www.factoryfive.com/wp-content/uploads/2012/03/42.jpg
Outgoing product is on hold for three days as we count em all up.

http://www.factoryfive.com/wp-content/uploads/2012/03/71.jpg
This past year has seen tremendous improvements in inventory organization, storage, and accuracy.

[Dave Smith]

http://www.factoryfive.com/wp-content/uploads/2012/03/31.jpg
Part indentification and storage is impressive and has made a real difference in accurate and on-time shipments.

http://www.factoryfive.com/wp-content/uploads/2012/03/8.jpg
Every part, nut, bolt, has to be counted

[crash]

I have a neighbor and another friend that are both managers of large parts houses. They absolutely HATE inventory, and it has disrupted many a weekend outing, but at the same time, it's a great problem to have! :)

On a side note, my FFR GTM based business is growing large enough that I am starting to pre package and inventory on shelves! Thanks Dave, and all at FFR, for a great product!

[vnmsss]

I worked as a service and parts manager at a Honda, Kawasaki, Yamaha shop following my Air Force career....The shop had been in existence for almost forty years, and I've been happy to forget about those annual parts inventories....Anyone need clutch parts (in rotting plastic) for a 1962 Yamaha TD-1A? We all dreaded inventory time. The funny thing is that those parts are like houndsteeth, and probably worth a small fortune by now.

Kudos to everyone at FFR on all the parts inventory and shipping improvements over the last year......Hang in there guys!!! Three days will go by fast!



Karen

[Movieman]

Inventory can be a PITA or easy depending on how you view it.
There are scanners that as inventory is removed from the bins ort shelves it is scanned "out" then come inventory time all thats required is to hit a button..
The key is good starting numbers and getting everyone to understand the importance of scanning the parts out when taken.
Instead of counting all those nuts and bolts weigh one, then weigh the total,subtract the weight of the bin itself and divide and your golden.
MUCH faster!;)

[crash]

While you are right, the companies I know about REQUIRE a PHYSICAL inventory be done quarterly. In other words, it's not enough for the computer to say that 30 widgets are on hand, a person has to go and manually verify that 30 of those actually exist on the shelf. All depends upon who is auditing I guess.

Usually this is precisely where the guys I know end up getting a phone call...the physical inventory doesn't match the computer and the manager must go in, no matter what he is currently doing, and resolve the discrepancy. I've been in Vegas at a trade show and one of my buddies had to drive back to San Diego on a saturday because the others couldn't figure out what the issue was. Yet another reason why management gets paid "the big bucks". ;)

[Movieman]

While you are right, the companies I know about REQUIRE a PHYSICAL inventory be done quarterly. In other words, it's not enough for the computer to say that 30 widgets are on hand, a person has to go and manually verify that 30 of those actually exist on the shelf. All depends upon who is auditing I guess.

Usually this is precisely where the guys I know end up getting a phone call...the physical inventory doesn't match the computer and the manager must go in, no matter what he is currently doing, and resolve the discrepancy. I've been in Vegas at a trade show and one of my buddies had to drive back to San Diego on a saturday because the others couldn't figure out what the issue was. Yet another reason why management gets paid "the big bucks". ;)

Sorry, was just saying what I've seen and that it was permissable to do electronic inventory but at least once a year a complete hand counted inventory was mandatory for year end for IRS .
I should have said it plainer..mea culpa..

[Mark Dougherty]

Movieman
that is how FFr does the inventory of small part bins.
weight of 1 divided into the weight of all = number of parts.
definatly shortens the time.
but still FFR has gone leaps and bounds to stock the shelves and has done a great job.
Kudos to you Dave and keep up the good work.
Later
Mark D

[Sailor]

Sounds like you're going about it all wrong Dave. Instead of stopping shipment, ship 'em all out. Then you don't have to count the ones you've shipped! :D
Keep pumping them out the more the merrier.

[Wayne Presley]

Parts are better in stock for sure, the coupe I received 3 weeks ago had only the seats on the back order list. Pretty amazing.

[Jeff Kleiner]

...the coupe I received 3 weeks ago had only the seats on the back order list.

Knowing the pace you work at Wayne, if the seats don't arrive soon its going to hold up the first drive!

Jeff

[crash]

Sorry, was just saying what I've seen and that it was permissable to do electronic inventory but at least once a year a complete hand counted inventory was mandatory for year end for IRS .
I should have said it plainer..mea culpa..

Nothing to be sorry about, I was just pointing out that many companies require the physical inventory be taken regularly. It would be great if they could do it all by computer, and the computer certainly is an irreplacable tool for things like inventory, but sometimes the computer isn't always right! :)