What is the definition of inventory management?
Inventory management is an important aspect of your total supply chain because it helps you to track your products’ purchases, storage, and sale at any time. You’ll be able to check your stock levels at any given point at a precise, granular level once you know where each product is located.
When you can automatically track how much stock you have and where it is, inventory management goes from a difficult, manual task to a key component of your business’s growth strategy. A competent warehouse management system may undoubtedly help you save money, and time, and ensure customer happiness.
Choosing the correct warehouse management system, on the other hand, might be difficult, especially if you want to grow your firm. To maintain constant profitability and decrease risks, optimizing the movement of commodities across numerous warehouses becomes critical.
In this blog, we’ll go through the three fundamentals to consider when selecting a warehouse management system for your complicated business.
Connect to your ERP and supply chain management software
Many manufacturing companies must operate several warehouses and delivery routes in multiple locations. As a result, choosing a WMS that interacts easily with your ERP and supply chain aspects is suggested.
Ascertain that your WMS is capable of full integration with sales, purchasing, transportation, and third-party logistics (third-party logistics). This enables firms to provide warehouse integration, which in turn provides better tools to aid the organization in accomplishing jobs more quickly across various functions. Imagine the potential of bringing your clients’ enjoyment to new heights with this integration, since you will be able to tailor how their orders are processed and delivered.
Consolidate the transportation management system
To ensure that the correct items are delivered to the right people on time, manufacturing companies need more visibility and control. Your warehouse management system should be able to support reliable and predictable inventory movement.
Adding transportation to your WMS gives you complete visibility into your inventory and reduces the risk of errors. It aids in the more precise, strategic, and cost-effective management of distribution schedules. Integrating transport management system with your warehouse management system also saves money by maximizing warehouse space.
Ensure that labor management is efficient and effective
Labor expenditures account for a significant portion of warehouse management costs. In a complicated enterprise model, having complete visibility into resource allocation and efficiency is critical. A robust warehouse management system can track man-hours and overtime expenses.
Warehouse managers can also use labor forecasting and KPIs to not only assure optimal resource utilisation, but also to analyze what’s working well and what needs to be improved.
Top Benefits of Warehouse Management System
Inventory management that is automated
Automation is one of the most significant advantages of an inventory management system. Automation eliminates the possibility of human error, saves you countless hours, and assures that you do not make errors. Once a set of rules has been established, this system is capable of performing repetitive tasks with little manual assistance.
Forecasting inventory for holiday and peak season readiness
Because of accurate demand forecasting, when order volumes grow significantly due to holidays or events throughout the year. They are a major marketing push from an influencer, the amount of inventory you have will keep up with demand.
Overselling and stock outs should be avoided
Overselling is a key issue for ecommerce enterprises in the early stages. When you don’t keep track of your inventory accurately, it’s simple to run out of things without realizing it.
Costs of running an ecommerce firm should be reduced
Advanced inventory management reports show you exactly what you have in stock. So your warehouse personnel doesn’t waste time looking for stuff that isn’t there.