Six Reasons Why Warehouse Inventory Management is the New Logistical Fad
Are you struggling to keep up with the evolving customer demands?
Are you finding it hard to get out of the vicious cycle involving distribution centers and supply chain management?
If these questions are continuing to bother you as an entrepreneur, it’s high time to look closely at the concerned warehouse— the connecting link between supply chain and customer demands. Needless to say, logistics optimization is an inseparable part of any entrepreneurial crusade. Therefore, warehouse management is one strategy that can help organizations improve upon the existing logistical framework sans major enhancements. Once the warehouse inventory management is out of the way, it gets easier for the businesses to maintain better product flow and higher levels of customer satisfaction.
Warehouse Management: Associated Metrics
I have always been quite skeptical regarding my warehousing objectives. Based on experience, I would suggest companies to involve inventory management strategies as an integral part of the optimization technique. The major objectives behind Warehouse Management must involve improved order fulfillment, enhanced productivity, minimized error rates, amplified operational efficiency and extremely low inventory holding rates.
Categorizing the Inventory: Basic Models
Inventory management forms the crux of a warehousing model regardless of its size and structure. When it comes to restructuring an inventory, enterprises need to inculcate aspects regarding categorization, definition and even forecasting. Last but not the least inventory management involves efficient usage of analytics, helping companies with layout reconfiguration and a host of other functional additions.
Moreover, when an inventory keeps the order picking loopholes at bay, it becomes extremely easy for the enterprises to enhance the turnover ratio, plan locations for quicker remittance and even improve upon wave picking and cross-docking techniques.
Warehouse Management Ideas: How it actually Works?
At the end, it all comes down to how a warehouse is managed, in order to strike the perfect balance between demand and supply. However, the underlining concepts still include assessments and implementation— albeit on a larger scale.
- Organizing the Warehouse
The storage locations have to be marked depending upon the type of product. In simpler words, fast-moving entities should be kept at accessible locations. When it comes to strategizing the organization of a warehouse, enterprises should prioritize pick & pack, order fulfillment and even ease of distribution.
- Performing Cycle Counts
There are companies which rely on year-end head counts for their products. For efficient warehouse management, the approach should commence in cycles with counts performed on a regular basis. Periodic intervals might also be selected depending upon the entrepreneurial preferences.
- Implementing Barcoding Tech
Tracking inventory details using pen and paper is obsolete and demanding at the same time. Instead, proper warehouse management must make use of barcoding technology that not only improves overall efficiency but also minimizes the paper-centric costs. Moreover, any manual approach is prone to imperfections and therefore it is advisable to add a hint of technology into the scheme of things.
- Tracking Inventory Cycles
Basically, every marketing move— including sales and logistics— involves data monitoring and inventory tracking. There has to be a software module that takes care of the minute warehouse details— starting from storage to inventory. This approach also assists enterprises when it comes to tracking the inventory levels and minimizing human errors.
- Creating Cordial Relationships with Suppliers
There has to be a cordial and harmonious relationship between suppliers and the concerned enterprise. There have been instances when mutual respect and amicability led to reduced inventory costs and credit-based supplies. Moreover, companies with e-fulfillment centers should always look to be in the good books of suppliers— precisely for getting hold of quick orders, decent distribution schemas and anything that simplifies warehouse management.
- Training Workers
Last but not the least, companies with logistical headaches must skillfully train their employees— especially in warehouse management practices. Apart from that, enterprises must impart knowledge regarding the inventory management policies and practices which are bound to change, intermittently. With expertise on-board, the warehouse management system is expected to flourish further.
Warehouse management is all about the accuracy and keeping a track of the concerned inventory. If done right, an efficient management system can readily improve the organizational cash flow followed by reduced costs, improved customer satisfaction and even enhanced efficiency— all at the same time.