There are a few signs of a poorly run parts inventory. The most obvious is one where you walk through and there is no organization and parts are not put away. But there are other cues – on paper.

One cue: Negative On-Hand Quantities. If there are more than “a few” negative on-hand bin quantities, that are not cleaned up before end of day, this is your cue there is a problem with physical parts counts and/or paperwork.

Next cute: No-Bin location. On-hand parts inventory that have a “No-Bin” location, or a default bin location, is a sign of a parts inventory management issue too. If there are more then a few pieces that have No-Bin location, that’s a sign of trouble. No-Bin location reports are ran after a shipment is received. After the report is run, there is no reason for parts not to be located in the DMS system.

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