Why use a warehouse inventory management software? Well, as it turns out, Warehouse inventory management is one of the most challenging aspects of any business that deals with a large scale of inventory. For online sellers, an inefficient warehouse management would lead to an overall sloppiness in the fulfillment process and supply chain, increasing labor and inventory costs.
In fact, inaccuracies in warehouse inventory management due to human errors are very common and costs a significant sum of money every year.
This is why warehouse inventory management is always open for automation to increase efficiency and save costs. A Warehouse inventory management software takes care of that by automating a large chunk of the workflow that reduces inaccuracies and saves costs.
So what are the major challenges in warehouse inventory management and how does automation solve those?
Picking is one of the most important tasks in each and every warehouse. A large share of activity in any warehouse is contributed by workers moving from one location to another to pick items and dispatch for shipping.
The picking process is composed of a number steps. It is necessary for the warehouse inventory management software to be able to work around that process and automate it as much as possible.
A warehouse inventory management software can help you increase picking productivity by facilitating batch and wave picking. Batch and Wave picking are based on SKUs of the product and a WMS can easily create a record of that. A WMS such as orderhive is also equipped to read data from a handheld barcode reader that helps immensely to set up quick picking.
Inventory Location is directly connected to the efficiency and operating cost of the warehouse. Setting up the inventory location requires you to define areas and spaces meant for specific purposes.
You need to define warehouse numbers, the storage types, storage bin, etc. Your warehouse inventory management system will allow the configuration and the workflow to go as you have intended to.
If you have multiple warehouses spread across different geographical locations you may start with an inventory group, set up inventory locations and then allocating inventory area.
One of the leading problems for all businesses who deal with inventory is keeping up with accuracy. Inventory inaccuracy may arise from a number of factors but a lack of automation is the major contributing factor for it.
Inaccurate inventory may lead to an inaccurate calculation of reorder point and safety stock levels. This is why a lot of businesses store excess inventory. This leads to an elevated inventory carrying-cost, incurred to store the inventory until the time it is sold.
This is why businesses can employ a warehouse inventory management that provides RFID based cycle counting in order to remain updated on inventory status. Orderhive’s barcode inventory system does that with ease.
Space Utilization within a warehouse is directly connected to the travel time of pickers. Poor space utilization during picking and dispatch leads to an inefficient system leading to higher costs.
Rack Space utilization, pallet optimization etc. are important to maximise and make good use of warehouse space.
However, in order to do that, inventory velocity with respect to products should be known. A WMS such as Orderhive can give you quick insights into your fast selling items. You can keep the fast selling items at a place where it is easier to pick, pack and ship them leading to lower travel time and costs.
Once, you sort your inventory with respect to the SKUs, you may put the slow-selling items farther into the warehouse, or up in the higher rack space.
Ability to update workflow time to time:
A WMS will give you all the insights about product velocity for each and every SKU. You may also get detailed analytics with respect to product demand based on regions. This will allow you to quickly change your workflow and get rid of redundant processes that no longer serve your efficiency goals.
Investing in a WMS is always a wise thing to do. Efficient warehouse management calls for routine-based and iterative tasks. This is where automation can play a significant role and save costs manifolds by increasing the efficiency.