For warehouse businesses operating in an increasingly omni-channel world, creating efficiencies is crucial to remaining competitive and profitable. To achieve this, having an accurate view of inventory across the supply chain is essential.
Many operators are leveraging the power of Warehouse Management Systems (WMS) as a robust foundation for their inventory strategy. From gaining an enhanced view over stock coming in and out, to using Artificial Intelligence (AI) to predict demand, and automate stock replenishments, using this kind of technology is no longer a luxury when it comes to effective warehouse management.
Navigating demand fluctuations and unplanned supply issues
The pandemic has rapidly accelerated digital transformation in retail, and changes in consumer buying behaviour have been significant. With a growing expectation around product availability and speed of delivery, warehouse operators have had to up their game, while navigating unprecedented supply chain challenges. It’s never been more important to plan ahead and gain full stock allocation visibility.
Many of the latest cloud-based WMS solutions help operators ensure they have enough stock allocation, in the right locations, to meet demand – and have real-time visibility of this. This is where AI is invaluable in learning from historical and other data to predict demand and automate inventory replenishment. Preferred stock levels, lead times and re-order points can be customised or suggested based on predictions, and help organisations balance the supply against demand across single or multi-location sites, including warehouses, stores, Third Party Locations (3PLs) or drop-ship locations.
Keeping track of inventory in real-time provides warehouse operatives with true accuracy on cycle count, while maintaining control of overhead costs and keeping the all-important cash flowing by negating overstocking – and the costs associated with storage of excess stock. With some systems offering the capability to create sub-locations, which can be subsequently broken down into bin locations, once defined, stock can be stored in any location while being visible in the wider inventory count. This means a holistic view of inventory levels across all locations can be achieved. Full traceability is usually possible through lot or serial tracking.
Collaboration with supply chain partners is greatly aided by technology
Communications with supply partners is much more efficient and streamlined when there is the capability to use shared portals for easy viewing of product info and orders. It is this kind of integrated approach that helps operators achieve the visibility required to aid smooth ordering, payment and general communications processes. Many of the cloud-based WMS solutions providers, such as Oracle NetSuite offer out-of-the-box pre-configured portals that can be easily and quickly activated with no complicated set-up. These aid effective communication between distributors, partners, suppliers and contract manufacturers, regardless of location or time-zone – essential in a global economy. Whether it’s purchase or work order management, updates on stock in transit or vendor performance tracking, this important information can be viewed instantly from a range of devices, desktop and mobile.
Effectively managing the inventory cycle through all the necessary steps, from open purchase orders through to pick, pack and shipping – including the tracking of inventory across multiple locations – is a process that needs to be streamlined. Executing such tasks via disparate systems or processes is no longer a viable option for those wanting to achieve the efficiency required to survive and thrive in this fast-paced industry. brightbridgesolutions.com
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