A warehouse is where products or packages are stored, on its way to be delivered to the final-end after being shipped from the point of its origin. To achieve their business goals many companies start with one warehouse to keep their entire inventory. Inventory Management along with cross-docking, transportation, and delivery comprises the warehouse distribution services. However, once the company begins to stretch out and aims for the emerging audience, having just a single warehouse in one location might get chaotic. Shipping of products from one warehouse would cause delays in delivering products to the customers. This is the reason why multiple warehouses are being maintained close to the prime concentration of customers.
What Purposes Multiple Warehouses Serves?
A company or a brand that maintains multiple warehouses get straightforward access to supplies and commodities, including raw materials. They also enable to lessen the expenses of transportation and allow faster and efficient delivery of products to consumers. Having multiple warehouses provides the company with facilities to store products as additional stocks. This can be quite helpful if any natural calamity occurs. If the company has to face any untoward situation of flood, earthquake or fire in any one of its warehouse, the other warehouse will serve the purpose.
Although running many warehouses would get costly, even then the efficiency it brings is laudable. Operating from just one warehouse might impede the flow of packaging and shipping. But, while operating from more than one warehouse balance can be maintained for the number of products to be packed and shipped. This can create an efficient process.
How Inventory is Managed for Multiple Warehouses?
Managing inventory for multiple warehouses can be a very tedious job. Numerous things need to be attended to regularly. It requires the applying of a resourceful Warehouse Management System i.e., WMS which has advanced methodical ability to perform various analysis. Nowadays, the use of warehouse inventory software is an impeccable means to manage inventory in one-to-many warehouses.
Moreover, these few guidelines could be handy in managing inventory for multiple warehouses –
- Keeping Track of the Best Selling Products – The products which generate a maximum number of sales should be stocked in optimum amount. To ensure this the stocks must be assessed daily and arranged to restock them accordingly. As per the assessment, which warehouse needs restocking of products can also be decided.
- Updating Inventory in Synchronized Manner – The data related to stocks, orders, and deliveries from each different warehouse must be recorded instantaneously. A company having multiple warehouses will have to manage such data through an able system. A 3PL service provider can help in multi-warehouse management. They can also help in managing the inventory to be transferred among the warehouses and their amount.
- Surpassing the Dilemmas of Communication – With different warehouses at different locations, one of the key factors of managing inventory is communication among the employees. Establishing fine communication among far-flung employees builds a healthy collaboration. This can be beneficial in tracking all the products with the sharing of data in real-time. When the communication becomes well-organized the inventory of every warehouse remains under scrutiny.
- Maintaining Stocks for Each Warehouse – Maintaining multiple warehouses in a business-oriented way can be very challenging. The stock of products stays at balance is a mandatory factor. The synchronization between sales and stocks might not stay at par. If the inventory count becomes low, it can cause incompetence to the supply chain which can eventually lead to loss of revenue. So, it is very crucial to keep the count of stocks of every warehouse independently. Assuming to keep track of product quantity in total number, of all warehouses combined, might be a faulty move. Every warehouse in every location must be analyzed to make certain that the stock levels of products are balanced.
- Implementing Latest Technology – A warehouse at every strategic location needs to perform without any factual errors for the business to excel. Implementing a computerized Warehouse Management System or taking the help of some warehouse inventory software can do wonders. These latest technologies are best to minimize human interventions, develop precision of processes and above all maintain stocks healthier manner. The most up-to-date inventory solutions allow managing inventory for multiple warehouses. Such modern solutions are cloud connected. They not only give insights into product stocks and product procurement but even assist in creating strategies for selling.
Inventory Management is an important aspect of logistics. To guarantee delivery of orders to customers on time all the aspects of logistics are to be streamlined in perfect coordination. When inventory management is to be done for multiple warehouses, it becomes a complex task. To overcome such complexities, it is essential to have a better understanding of managing inventory at multiple warehouses. This will help in developing strategies on how to successfully manage different warehouses and their inventory. Single or Multiple — Warehouses are a very imperative part of the supply chain.