It’s that time of year when you can potentially bag a bargain, especially online, says Eric Carter, a Solutions Architect at Indigo Software. Many designer brands are offering 70% off and some even have extra discounts on top. That feeling when you realise the item you have been coveting is now within your grasp is priceless, you click to buy and get the email confirmation. Life is sweet. It’s an opportunity for the seller too, being able to shift all those old stock items that are clogging up the warehouse. Provided things go to plan.
But what happens when, 30 minutes later, the customer gets another email, this time telling them their order has been cancelled. Disappointment sets in. Maybe someone else got there before you did? Or maybe the stock level figures are incorrect. Most frequently it’s the latter scenario, because the seller doesn’t have end to end visibility of stocks in the warehouse being shared with its e-commerce storefront. Warehouse stock data is never fully up to date, either because the warehouse is managed using excel spreadsheets and paper sales order schedules, or because online order information is batch processed at set periods during the day. It is a frustrating but all too common scenario that can seriously impact customer goodwill levels.
Back office operations are also affected, because a system that is poorly automated requires more human intervention. Operatives are required to process partial refunds and split orders, which can be time consuming and adds to the cost of completing the order. Using warehouse management system (WMS) software, it is possible to automate many routine and repetitive processes in the warehouse, which in turn helps minimise the impact of exception handling and mitigates higher labour costs. The potential savings can be very significant.
Investing in a WMS that communicates in real-time between the warehouse and store fronts can be one of the best commercial decisions your business makes. Stock accuracy mistakes that could leave bargain hunters feeling deflated won’t happen and there are many other benefits too. Using a WMS, it is possible to track stock items right down to the last item in the warehouse. If only a single product is left, when that last item is picked off the shelf, zero availability is immediately recorded and the item vanishes online. If more stocks can be ordered, the WMS can trigger an automatic replenishment request to suppliers. Then, if and when the item returns to stock – either because of a customer return or fresh delivery – the product can be re-displayed for sale.
The WMS also takes care of ongoing stock management and cycle counting automatically. This feature is also invaluable during the final weeks of a sale period. Each time an operative visits a particular location to pick stock for an order, they can be asked to confirm the numbers of items remaining, adding in a further check to warehouse processes. This is the Perpetual Inventory (PI) feature within Indigo WMS. Then, when the sale period is over and the business returns to normal operations, the warehouse can run more efficiently all year around, with orders processed quickly and efficiently, removing any negative impact of peak periods on staffing levels.
In addition, a WMS also helps companies store more goods more efficiently, but using less space. Every single unit of space can be fully utilised without impacting on efficiency. At a time when increasing inflation is impacting warehouse rental rates, this is a significant benefit. A best of breed WMS can enable up to 30% more stock to be stored because it will suggest new locations that are being underutilised and then guides the operative to find the items when an order is received.
Make 2023 the year that you decide to embrace the technology available and improve your order to despatch process by bringing calm to chaos.
If you would like to discuss how a WMS can help bring up to the second stock accuracy to your e-commerce operations, contact us for a business review meeting. www.indigo.co.uk
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