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<< Click to Display Table of Contents >> Navigation: MLS 2026 Operations & Reference Guide > Inventory > Inventory Data Overview > Location Assignment and Methodology |
Accurate inventory location control is extremely important within MLS 2026.
A properly organized location system helps:
•reduce lost inventory
•improve technician efficiency
•speed parts retrieval
•reduce duplicate purchases
•improve inventory accuracy
•prevent unnecessary special orders
Poor inventory organization often leads to:
👉 inventory that physically exists
but:
👉 cannot be quickly located.
This creates:
•wasted time
•unnecessary purchases
•tied-up capital
•shelf congestion
•inaccurate stocking assumptions
throughout the business.
Many inventory losses are not caused by:
•theft
or
•accounting errors
but rather by:
👉 misplaced inventory.
Slow-moving parts are especially vulnerable because they may:
•get pushed behind newer stock
•move to temporary locations
•become buried on shelves
•remain forgotten for long periods of time
Without clear location control:
👉 employees may assume the item is unavailable
and order another one unnecessarily.
Over time:
•duplicate inventory accumulates
•cash becomes tied up
•storage space is wasted
•obsolete stock increases
all because existing inventory could not be located quickly.
A properly designed location system allows:
👉 parts personnel and technicians
to quickly locate inventory without:
•lengthy searching
•unnecessary interruptions
•duplicate purchasing
This improves:
•workflow speed
•repair turnaround
•inventory confidence
•operational organization
throughout the shop.
Location codes should reflect:
👉 the actual physical layout
of the business.
The coding system should be:
•simple
•logical
•easy to remember
•easy to expand
as inventory grows.
One common approach is:
The first portion of the code identifies:
👉 the major inventory area
Examples:
•wall sections
•shelving groups
•storage rooms
•warehouse sections
•storage sheds
•office inventory
•mezzanine storage
These areas should ideally be mapped:
👉 clockwise around the facility
to create:
•predictable organization
•easier employee training
•simpler inventory expansion
The second portion identifies:
👉 the position within that section.
Examples:
•L — Left
•M — Middle
•R — Right
Additional codes may be created if needed.
The final portion usually identifies:
👉 the actual shelf, row, or bin position.
For example:
FM3
might indicate:
•F = Main Shelf Area F
•M = Middle Section
•3 = Third Shelf From The Top
This provides a quick and precise physical reference.
The location structure should always reflect:
👉 your actual shop layout.
There is no single “correct” method.
The goal is to create a system that:
•employees understand easily
•scales effectively
•reduces search time
•improves consistency
within daily operations.
Location systems work best when:
👉 physical areas are clearly labeled.
Consider labeling:
•shelving units
•aisles
•wall sections
•storage bins
•warehouse areas
with visible identifiers matching:
👉 the inventory location codes.
This dramatically improves:
•inventory retrieval speed
•employee training
•inventory accuracy
especially in larger facilities.
One of the biggest benefits of location tracking is:
👉 preventing unnecessary reorders.
When employees can quickly verify:
•where inventory is stored
•whether stock actually exists
the business avoids:
•duplicate inventory
•tied-up cash
•excess slow-moving stock
which are common inventory control problems.
Location codes also improve:
•inventory searches
•inventory audits
•shelf organization
•stock reviews
•cycle counting
within MLS 2026.
Managers can more easily:
•identify misplaced inventory
•reorganize stock
•review slow-moving items
•improve shelf utilization
when inventory locations are consistently maintained.
Inventory control is not simply:
👉 knowing what parts you own.
It also requires:
👉 knowing exactly where they are.
Well-maintained location systems help create:
•faster workflow
•stronger inventory control
•improved profitability
•reduced purchasing waste
throughout the service operation.
•Develop a simple, logical location structure
•Match location codes to the physical shop layout
•Label shelves and storage areas clearly
•Keep frequently used parts easily accessible
•Review misplaced inventory regularly
•Update location codes whenever inventory moves
•Avoid duplicate location naming methods
•Train employees on the location system
•Use consistent coding standards
•Audit inventory locations periodically
This section works closely with:
•Inventory Editor
•Stocking Parts
•Non-Stocking Parts
•Inventory Reports
•Purchase Orders
•Parts Utilized Reports
•Workorders
•Vendor Management
•Inventory Searches
Together, these sections provide a complete inventory organization and inventory control workflow system within MLS 2026.