Monthly Archives: November 2017

Honeycombing is a warehousing situation where there is storage space available but not being fully utilized due to product put away, product shape (such as two stacks of two boxes each with a fifth box having slipped between them on top, thus preventing any further proper vertical storage), and/or location system rules (only one package per cubic foot, when two will do if stacked properly) and/or poor housekeeping (caused by procrastination in removing stale items or packing materials that are hard-to-reach and/or tedious to eliminate).

The goal of a careful layout is to minimize how often and to what extent these shortcomings occur. It is reflection of the awkward spilling of containers into space that could be more efficiently used and lets you know how much wasted (empty) space you actually have available.

You can calculate the impact of honeycombing on your present facility by the following simple steps:

1. Tally the number of locations you currently have set up to store items—both horizontally and vertically (include all your locations whether they are full, partially full, or empty).

2. Tally the number of empty storage positions.

3. Divide the number of empty locations by the total number of storage positions that you have. The result will be your honeycombing ratio.

The Honeycombing Ratio represents the percentage of empty space within the storage portion of your storage areas. Finding this ratio provides you with a baseline. If you decide to change your storage philosophy, you should also change your change your storage methodology (two instances: moving from racks to shelving or moving from racks to floor stacking). You can then determine the new ratio and measure improvement in space utilization.

For a system that provides you with a versatile storage design, give FreshVu2Go a free trial today here:

Monthly Archives: November 2017

When all your stock items move through an inventory system, it doesn’t matter what the characteristics of a SKU are because the shelf count of the item (actual balance on-hand stock levels) and record count (how many your records say are supposed to be there) will match.

The traditional method of determining if actual balance on-hand stock levels match book/record levels is to take an annual physical inventory. As a method of correcting inventory accuracy problems, this costly and time consuming effort is riddled with deficiencies. Consider these factors as to why:

  • Accuracy is often defined in dollars rather than in actual physical units. This is an unreliable method to use since value changes are not affected when you have a resulting surplus of one this and a deficit of something else.
  • Discrepancies that are “adjusted to zero sum” Often, the greatest problem with using the annual inventory as a method for establishing accuracy is that it provides no method for backtracking through physical and paper transactions to determine why an item’s record count and its shelf count do not agree. This is because a twelve month time period is simply too long of an audit trail. If the reason for a discrepancy cannot be immediately found during the inventory, an adjustment is made with the underlying cause of the error never being corrected.
  • Faulty identification of units of measure. Incorrect quantities are often written down during annual inventories because stock counters simply do not understand an SKU’s descriptions, abbreviations or pack size.
  • Imprecise ID of item. Misidentification occurs because inexperienced counters assisting with the effort do not recognize items, or misunderstand package descriptions, etc.

At the end of an annual inventory and all of the adjustments have been made, you have an inventory shelf and record count that agree. However, the next day the same system that permitted the previous discrepancies now begins to permit a new group of errors.

Reviewing the nature of inventory problems is a key step in solving them. A good systematic process provides you with a good starting point in resolving your own inventory-related issues. FreshVu2Go is a cloud-based SaaS application, which provides a robust and thorough system for both your company’s inventory and accounting needs.

For a free trial of FreshVu2Go, visit here:

Monthly Archives: November 2017

Most large companies offer health and wellness programs and services as part of their benefits package. There are a lot of small to medium-sized businesses that care about their employees, but just aren’t there yet when it comes to providing a comprehensive health and wellness program. Here’s where you come in. Develop a suite of services geared to the workplace you’re targeting and offer a group rate for all employees.

For more established businesses, you could propose an annual fee to deliver a fixed number of services to their employees. Alternately, you might offer smaller businesses a group rate for their employees and the chance to give talks internally to market your services.

Partnering with a complementary health and wellness service provider (or two) could help you build a more comprehensive package for bigger businesses.

Give FreshVu2Go a free trial for your inventory and accounting needs here:

Monthly Archives: November 2017

In practice, there is a standard approach to measuring accuracy once a stock check has been done:

  1. The items are classified by their turnover value into three or more classes. This takes into account the cost and usage rates of the items.


  1. Next, the size of the discrepancy is measured as a percentage of quantity

% Discrepancy = Quantity on record – Quantity in stock (100) / Quantity on record

  1. To back this up there is a limit on value discrepancy for each line, where:

Value discrepancy = Unit stock value X Quantity on record – Quantity in stock

If the value discrepancy is greater than a figure agreed by the accountants, then it is treated as a problem.

Some stock will be greater than the record quantity and some lower; as the errors compensate, the financial view of stock accuracy is more positive than the operational view.

The process for measuring stock accuracy is therefore to create records of significant discrepancies regularly, using either picking or inventory checking as a basis (or both), and to measure the quantity and size of inaccuracies observed. These should be totaled by category so that an overall figure of accuracy can be measured.

 Tony Wild

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Monthly Archives: November 2017

Integration of on-premise applications has traditionally required a team of IT specialists that have a deep understanding of underlying application processes and frameworks. SAAS apps are made to be run by business users—non-domain experts that need to easily and quickly connect other enterprise systems with data. Cloud integration must complement the model by implementation, by maintenance resources and by minimizing development. This permits users to spend their valuable time on their business.

Today, popular cloud computing services, like FreshVu2Go, provide levels of function and availability to out-perform internal infrastructure, achieving in most cases higher than 95% uptime. Cloud strategy designs identify integration requirements for each system (real-time, near real-time, batch), and determine the number of simultaneous requests to be handled, and specify all special architecture requirements. The ultimate success of these systems depend on guaranteeing that information will not be lost if the cloud or on-premise source goes down.

Combining such an SAAS with a reliable backup system and you reduce potential downtime to lower than 5%.

If you are looking to give the cloud-based interface a try, give FreshVu2Go a free trial here:

Monthly Archives: November 2017

We at FreshVu2Go encourage everyone to take that somber moment to reflect on the service of so many who made the ultimate sacrifice in service to their nation. But we also remember all of those who perished — combatants and civilians alike. During the Second World War, 55 million human beings died. Let us remember them, and commit our strength and dedication to never allow such inhumanity to occur ever again. Bless their memory, and bless all of us.

Monthly Archives: November 2017

Monthly Archives: November 2017

At the juncture when you have organized your most useful stock and have a control system in place, the time comes to get rid of your unwanted inventory. These items are, in reality, worth only what someone is willing to pay you for it. Anything you can get above the liquidation cost is considered to be “found money.” Most successful distributors have a documented plan for liquidating materials.

The following are among the strategies that have produced the most success:

Donate the material to a non-profit organization. Can a school, church, or charity use some of your dead or slow-moving inventory? This alternative is especially attractive for sub-chapter “C” corporations in the United States. These companies can take of the inventory. Talk to your accountant or tax advisor for details and restrictions concerning material donations.

Feature the product in place of a less expensive item. Let’s say that you sell air conditioners. Your vendor replaced his model 920X (area coverage 1000 sq. ft.) with the model 940X (area coverage 500 sq. ft.) but is more energy efficient. You have three pieces of the discontinued 920X in stock. Naturally, contractors want the new model. But when a customer orders the new model why not offer him one of the 920X at the price of the 940X unit, thus doubling his space coverage? Remember, stock isn’t worth what you paid for it. It is worth what someone is willing to pay you for it.

Is space short? Throw away items that can’t be liquidated. Even if you do not receive any payment, the free space you gain in your warehouse may make the effort worthwhile. Otherwise you’ll continue tripping over and shunting unwanted material around while you try to fill orders for popular products that are selling like hotcakes.

Lower the item price to “shake loose” the excess inventory. Retail stores do this all the time, and this strategy works when customers have some discretion as to which of several items they will purchase. For instance: a customer might purchase a discontinued sink if the price is substantially lower than a similar item from normal stock.

Offer your sales staff a monetary (or some other) incentive to sell the product. Like reducing the price, this method is effective when a customer can choose between several products that will meet his or her needs. Often it is amazing miraculous how quickly items can move when sales staff is provided with the right kind of incentive.

Promote the availability of the items to other suppliers. Search for Internet sites that specialize in liquidating material using the words “surplus,” “inventory,” and the name of the product line that contains the material you want to dispose of. The Internet is particularly effective for liquidating material when there are a large number of potential customers. A product may no longer be popular in your market but still be needed elsewhere.

Relocate excess stock to a second location where it is needed. A product may be “frozen” in one of your locations, but still active in second one. Avoid buying more of the item when you already have it taking up space in a second location. This option is particularly attractive if the cost of transporting the product between branches is a small fraction of the value of the item.

Returning items to their vendors. This option varies with each vendor – some are very good about accepting returns while others tack on unlimited conditions and charges making returns unfeasible. TIP: The best time to negotiate terms for returns of items is before you issue a large purchase order. Have your buyers continually remind their vendors of the material they would like to return.

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Monthly Archives: November 2017

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