Managing inventory operations can make all the difference to productivity within your supply chain. By organizing your warehouse operations effectively, you can get benefit such as
• Maximize the use of storage space
• Save time
• Keep the record of stocks
• Fewer Overheads and increased cost-benefit

You can get all these benefits by implementing some very simple steps within your workflow. Let’s take a look at some of the best ways of achieving a more managed warehouse inventory.

• Arrange the warehouse properly

There are certain stocks which used more frequently than other stock, plan your warehouse space with these stock in mind. Always put the most commonly used items in an easy to access location. By making all these necessary arrangements, you can save the time it takes to load and unload such items.

• Demand forecasting

Some times of year will be busier than other times, especially the peak season, so plan ahead and accordingly for your business seasonal demands. Forecast the demand based on past sale records and ensure that you have enough stock for that time period to avoid any delay.

• Be Flexible to the change

Business demand change over time, what may have worked for your business earlier may not work in later years. Examine how your warehouse operations carry out every year, check your stock records and new changes in your business throughout the past few years. Evaluate every area very carefully to make the necessary changes to run it more effectively.

• Implement Cross Docking

Cross-docking is a form of supply chain management process in which the products from a supplier or manufacturing unit are shipped directly to a customer or retail chain without any requirement for the storage of goods in the warehouse in between. That means a quick turnaround for your business, saving time and money. It is not ideal for all needs, but it saves cost and time for a certain stock.

• Give the right training to your staff

A staff that understands warehouse inventory operations will keep it better and manage the business more efficiently. By having knowledgeable staff, you can ensure that your workforce maintains a properly organized warehouse inventory.

• Label your items

Put SKU(stock keeping unit) numbers on every item in your stock in the warehouse. It clear labels ensures that it’s easy to identify products, before moving or transporting them. A barcode system can also be used, depending on the needs and size of your business. Whatever you use, ensure it’s up to date and that no numbers are re-used inappropriately.

Order fulfillment Process

Order fulfillment is an important phase in a successful e-commerce business, first you fulfill then it is the time you meet your customers and finish the transaction, and if you are new to the business then you might have not enough idea about how an order placed online reaches your doorstep. In the phase of order fulfillment, you create a lifelong relationship with the customer.

Order fulfillment services are third-party vendors such as online sellers which fulfill an order for other companies. Third-party vendor’s involvement reduces infrastructure and cost as well improve the efficiency, Your order fulfillment strategy determines how quickly and easily you can scale your business. As technology is evolving customer is expecting better and faster deliveries, the idea of waiting for a package for days is gone to the oblivion now.

Before knowing the popular order fulfillment strategies let’s look at the stages involved in order fulfillment.

1. Receiving- To fulfill the orders you must need an inventory and if you are filling orders-in hose, you’ll be manufacturing the products yourself.

2. Inventory Storage – Proper inventory storage is the key, employees must be able to find the products, pick and pack them, and get products ready for shipping as quickly as possible.

3. Processing- Order processing involves order being submitted and then process of picking and packing as quickly and efficiently as possible.

4. Picking and Packing- Once the order is submitted the order is packed and ready to be shipped.

5. Shipping- Order is packed and ready to send, it shipped to the customer.

6. Returns- If the customer pulls up a return request all the steps will be done in reverse order, from picking and packing to storing it into inventory.

Popular order fulfillment strategies.

Thanks to the ever-evolving technology, there are multiple options to choose from, all you have to do is just choose the right strategy, which depends upon your order volume, products and if you can do all that or want someone else to do it for you.

Direct Fulfillment

Direct/Self or In-house order fulfillment also known as self-fulfillment, this strategy is the starting point in small businesses, thought large corporations also use it.
This type of fulfillment occurs when the trader has complete control over the order fulfillment process, trader completes each step of the fulfillment process by going door to door himself, this demands effort and lots of attention.

Advantages for Direct Fulfilment

1. Offers total control over order fulfillment processes.
2. While starting small when you don’t have a budget for third party vendors you can rely on this because you are only paying for shipping.
3. You don’t need much knowledge to complete this order fulfillment process.
Np negotiations as large corporations shipping through third-party vendors can become a competitive advantage.

Disadvantages of Direct Fulfillment

1. It takes lots of time and energy and requires constant attention.
2. Limited options for shipping to customers.
3. Packaging of all the products will take the time that you can direct toward other things.

Dropshipping

When a customer places an order you pay for fulfillment as the order comes, merchant purchases a specific item their customers order from manufactures who send it to the customer, after shipping you are charged for the product.
You don’t need to have a warehouse for this type of strategy, this works if you are planning to sell products from numerous brands.

Advantages of Dropshipping

1. Easy to scale.
2. No need for a warehouse.
3. Easily affordable.
4. More products and faster.

Disadvantages of Dropshipping

1. No option for customization.
2. No control over warehouse-like direct fulfillment.
3. You can only buy from companies with drop-ship capability.

Third part Outsourced fulfillment/3PL

Third-party Logistics involves the third-party providers, involving handling the detail over to third parties. Third parties provide solutions regarding warehouses, packing, and distribution.
When the customer places an order it goes to third-party provides which then handles the order form their location to shipping to customer. The third-party involves steps mentioned above such as receiving, picking, packing, return and quality control.

Advantages of 3PL

1. No investment required for warehouse space.
2. It provides data to track the shipment.
3. Includes manpower as more men are committed.

Disadvantages of 3PL

1. Reduced control over products is packed and shipped.
2. Additional costs for fulfilments, storage, etc.
3. You are not the only client, so your order can be shared with others at the warehouse.

Tenaxx Logistics provides you all warehousing and transportation management services. Contact us today for more information and updates.

Tag: direct fulfillment

Essential Guidelines for Warehouse Inventory Management