• Product identification  
• Product matching to orders  
• Data analysis  
• Product labeling and management 
• Documentation 
• Reporting 

The use of combined supply chain systems ensures these processes continue disruption-free, even when those systems go outside the warehouse. While a warehouse management system may perform similar functions, it may be also be limited in its use. Ultimately, the WMS may serve an inventory management purpose, but when other systems and functions are involved, inventory management processes are more reliable and accessible in modern supply chain management. Supply chain leaders need to understand how the combination of technologies and capabilities promotes successful omnichannel fulfillment.   

Challenges of Limited Inventory Management Capabilities 

The challenges of inventory management without using a dedicated, standardized system are significant. Without a system to adequately track inventory, supply chain leaders may realize an unexplainable higher rate of returns. Safety stock may turn in to excess stock, contributing to higher carrying costs. Orders between channels may lead to the worsening of this practice, and perishable products may expire well before a sale. Shopify notes that the average retailer only has a 63% inventory accuracy. 

An Inventory Management System Connects Physical Assets With Digital Data 

Regaining control over inventory is essential to omnichannel success. Retailers have spent years perfecting their channel-specific strategies, but in today’s world, a successful brick-and-mortar location depends on successful online order fulfillment and vice versa. Proper demand forecasting, allocation and replenishment, optimization of supply chain processes, assortment and space planning, and proper order routing will go a long way in reducing excess inventory and promoting lower cycle times. Unfortunately, gaps occur often, and when a gap exists, it results in delayed delivery. That does not mean safety stock goes out the window. The key to success lies in leveraging a proper system in a series of tools to effectively “grease the wheels” of your warehouses and all fulfillment centers, including brick-and-mortar locations. According to Camcode:  

“Because inventory often consists of movable assets, inventory management systems are critical for keeping tabs on current stock levels and understanding what items move quickly and which items are more slow-moving, which in turn enables organizations to determine when it’s time to reorder with greater accuracy.” 

How to Use an Inventory Management System to Boost Omnichannel Fulfillment 

Supply chain leaders have spent exhaustive hours working to boost omnichannel fulfillment, and to that end, the biggest players have achieved success. However, finding the best way to leverage an inventory management system and drive more efficient omnichannel fulfillment is slightly more complex. It depends on recognizing the unique challenges in your operation and putting the right technologies and software in place to overcome such obstacles. A bonus technique for increasing your authority is to utilize a link-building strategy like the one used by Link Gathering. To encourage better omnichannel fulfillment through the right inventory management practices, follow these steps: 

1. Bring all supply chain inventory management platforms or resources under a central software umbrella.  
2. Collect and analyze data to better understand appropriate safety stock levels for each fulfillment channel.  
3. Use all fulfillment channels as potential distribution centers to move more freight between channels and deliver on time every time.  
4. Work with suppliers to automate reordering, based on data, as well as fulfill orders directly from the manufacturer or when unloading a truck (dropshipping and cross-docking). 
5. Include returns management processes within inventory management to maintain better records and understand customer buying habits. 
6. Reconcile inventory automatically, recognizing when the inventory on-hand does not align with the expected number of orders shipped and vice versa. 
7. Use data from the supply chain system to increase transparency for customers, including inventory availability and realistic fulfillment options, as well as reassuring customers of potential risks in the supply chain, such as the coronavirus, for example, and how your company keeps them at bay.  

Invest in and Integrate Your Processes With a Robust Inventory Management Strategy to Unlock Greater Growth 

Your inventory management system is essential to success in modern omnichannel fulfillment. Instead of hoping your inventory will meet demand, guarantee inventory availability by following the steps above and putting the right inventory management strategy to work. Also, get ready to deploy your inventory management system by contacting Veridian and requesting a supply chain system consultation today. 

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1. Integration Is a Necessity for Order Management Improvement 

Channel integration offers benefits that go well beyond just easier management of inventory and systems. As reported by Software Advice, “96 percent [of retailers] say online store integrations reduce processing time.” Additional benefits of integration between your online and physical stores are shown in this graphic.  

2. Pay Attention to Insights Driven from Analytics 

Analytics applies to much more in the supply chain beyond inventory management. Analytics help you understand fulfillment rates, supplier delays and opportunities, compliance with inbound freight management, carrier management, and many other processes. Analytics unlock the secrets to near 100% accuracy on demand forecasting and spell out what steps to take to achieve your desired goals. Deploy analytics that stretch throughout the supply chain to understand how what happened becomes what should happen with time. 

3. Know the Role of Each Channel Within Omnichannel & Their Relation to Order Management 

The creation of an online store is not a small task, and it should be thoroughly considered for its impact on your order management system. Your online store should provide a seamless trail of data from the POS through your dock schedule, and it should also enable effortless navigation for users, fast checkout, rapid shipping, and superior customer service. These mentioned capabilities are not functions associated with order management improvement, per se, but the capabilities of your online store must keep in mind the role it plays in offering a strong, omnichannel presence and shopping experience. However, when supply chains are strong in their omnichannel approach, including an online store that works in harmony with all other ordering channels, naturally, your order management processes are improved. A strong omnichannel supply chain, driven by analytics and integrated systems, provides more information about your order management activity, yielding the ability to see the entire order lifecycle.  

4. Leverage Supply Chain System Consultants to Get Exactly What You Want & Need 

It is also critical to understand potential resource limitations within your company to establish various channels in the quest to omnichannel prowess. Many supply chain professionals think they can create an in-house program or implement modern-day supply chain systems, like WMS, on their own as a way to reduce initial investment costs. But, without the right talent to tailor the system and solution to meet every tiny detail and want, you could end up spending more man-hours and hard dollars that are over and above the use of an outside consultant to make the system work as you intended. That’s not feasible, and executives will see that approach only leads to the increased total cost of ownership. Instead of trying to do it all alone, turn to supply chain systems consultants, like Veridian, who can not only help you choose the right systems but also implement the system according to your needs. This is critical to reducing delays and keeping your costs under control to offer fast, free shipping for customers, says Big Commerce. Free shipping might not seem like a necessity, but it is essential in today’s “Amazon” expectations world. 

5. Leverage Automation to Collaborate and Avoid Miscommunications 

A final step in order management improvement lies in automation and improved collaboration throughout the supply chain. Automation is a broad capability that can apply to any repetitive task, making it an ideal solution for the supply chain. Automation can recommend new products to customers, eliminate labor costs from the packing, labeling, and shipping side of the operation, and transform inventory management into a turnkey process. Imagine the labor hours saved simply by allowing the connected systems to automatically reorder products based on the POS systems, online cart checkout, and shipping data. It carries additional implications for better collaboration and communication too, says TradeGecko: 

“With multiple salespeople working a range of different sales channels, it’s important that internal information is shared in real-time. The last thing you want is for one batch of stock to be promised to two different customers! Because dealing with wholesale customers involves much larger volumes, having real-time access to current stock levels is essential, particularly if the client makes his or her ordering decision days or even weeks after their last conversation with a salesperson. Using a B2B eCommerce platform to automate internal communications improves the speed and accuracy of doing business.” 

Automation may go further, leveraging analytics to recommend changes to the warehouse layout or slotting design to reduce picking time and speed fulfillment. It creates a self-replenishing, self-optimizing supply chain. That same capability will lead to improved order management, reducing the risk of inaccurate orders, damage to products, and upset customers.  

Apply These Practices to Boost Your E-Commerce and Retail Success 

The best practices for order management improvement might not be as voluminous as the steps to boost the implementation timeline and select a new warehouse management system. However, order management is essential to inventory management and vice versa. Ensure your supply chain has the resources to succeed and continuously works to improve order management and achieve all its associated benefits by choosing an objective partner in improvement—Veridian. Also, remember that order management begins and ends with visibility, so always stay focused on how each change will add to your level of visibility. Connect with Veridian by requesting a consultation and receive the expert guidance you need to improve your order management today. 

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1. Use ABC Analysis to Categorize Your Inventory

The use of ABC analysis to categorize inventory is not a new concept. ABC analysis helps supply chain leaders understand stock activities and how space utilization contributes to overall cycle times and productivity.

As explained by DearSystems.com:

“Organizing your stock within your warehouse according to how they sell and how much value they bring your business will help you optimize storage space and streamline order fulfillment.”

Of course, using such analyses requires the natural ability to collect, analyze, track, and manage data relating to space utilization and inventory.

2. Recognize the Relationship Between Sales and Inventory

The next step is simple. Supply chain leaders need to recognize the relationship between sales and inventory. As sales increase, inventory will flow faster. However, SKU proliferation and globalization of e-commerce make tracking sales feel overwhelming. Again, the role of technology begins to focus on data and its application.

3. Leverage Technology to Understand Inventory Flows

Supply chain leaders need to leverage technology to understand inventory flows. The types of technology available range from RFID-connected sensors through GPS-enabled systems. As supply chain leaders gain the ability to track more granular detail and data, such information can be processed with advanced analytics capabilities to understand how inventory moves within and outside of your warehouse.

4. Deploy Automation to Reduce the Burden of Inventory Management

With so much information available and the rise of globalized supply chains, inventory management must rise to a new level. Supply chain leaders need automated systems to complete replenishment processes, recognize when trends are on the uptick, and look for ways to avoid problems in fulfillment. For example, the use of drop shipping could alleviate the concerns of carrying inventory and getting it to consumers, putting that process in the hands of manufacturers.

5. Build a Tech Stack That Enhances Inventory Management

The tech stack within your organization should also enhance inventory management. In other words, legacy ERP systems that do not offer inventory management capabilities or the ability to see inventory across channels should be upgraded. Furthermore, the tech stack should include inventory management functions within most systems, including labor and logistics management. After all, inventory management best practices must include the putaway and shipping processes needed to ensure inventory levels remain stable.

6. Tackle Surplus Stock

Another issue in the modern supply chain is surplus stock. Surplus safety stock is an archaic idea that was designed when supply chains ran from one end of town to the other. In the global, e-commerce driven economy, the surplus stock is both costly and risky. Moreover, the surplus stock also includes items that have been sent back to the company or do not have the same value as similar products, such as damaged or defective items.

As explained by Fabien Tiburce, CEO of Compliant IA, reports Vend Blog, warehouse leaders should address the damaged or defective surplus stock in these ways:

“Damaged and defective products should be accounted for separately from other inventory. An excess of damaged or defective products may reflect a systemic problem in the supply chain, quality control issues, or problems with the distribution, shipping, and/or storage of products. 

If you have no other option, you may need to throw away the product. In that case, you should destroy it. You probably don’t want to leave the sellable product in dumpsters and create a cottage industry of ‘dumpster diving’ around your stores. This will attract unwanted attention and could have a negative snowball effect on the security of your stores and staff.”

7. Manage Inventory Across Physical Locations, Including Brick-and-Mortar Stores

In the omnichannel supply chain world, supply chain leaders need the ability to manage inventory across all physical locations, including brick-and-mortar stores. For organizations taking advantage of buy online, pick up in-store (BOPIS) fulfillment, the ability to manage inventory across physical locations is essential.

8. Remember to Count Inventory in Transit

Tracking inventory while in transit is also critical to the success of the supply chain. Inventory in transit forms a considerable asset for organizations in the global supply chain. Failure to track such inventory will naturally lead to problems with replenishment strategies.

9. Use Data to Better Manage Lead Times and Plan for Demand

Technology and data also play a role in managing lead-times of transportation needs and allowing for better demand planning to meet changes in the industry. For example, supply chain peak season planning requires advanced data analytics capabilities, and supply chains will start planning for peak season months, if not seasons in advance.

10. Conduct Continuous Reviews of Inventory

The continuous review of inventory forms another best practice in successful supply chain management. Continuous inventory management relies on connected systems to recognize current, real-time inventory levels, and complete replenishment requests without the need for human intervention.

11. Take Advantage of New Order Fulfillment Strategies, I.E., Drop Shipping, to Reduce On-Hand Inventory

Take advantage of new order fulfillment strategies, such as drop shipping, to reduce on-hand inventory and boost your brand’s online presence by opting to buy Instagram followers. The use of innovative order fulfillment strategies, like cross-docking, drop shipping, and even BOPIS fulfillment, can reduce on-hand inventory levels and lower operating costs. However, these fulfillment models require seamless communication and data sharing between consumers, supply chain leaders, manufacturers, and even carriers. By enhancing your online visibility, you can further strengthen these connections and facilitate the adoption of new fulfillment strategies.

Implement These Inventory Management Best Practices and Choose Veridian as Your Expert Consultant

Inventory management is a major undertaking in the global, increasingly omnichannel economy. Instead of relying on outdated practices, supply chain leaders should follow the above-listed best practices and seriously consider upgrading their systems to take advantage of new technologies. Request a consultation with Veridian online today to understand the role of technology to improve inventory management.

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Common Weaknesses in Peak Season Supply Chain Processes

The challenges and weaknesses associated with peak season supply chain processes are vast. Vulnerabilities may reside within outdated systems, a lack of access to data, reduced use of available data, basing assumptions on false beliefs, lack of communication, and more. Consider these additional problems that will exploit weaknesses within the peak season supply chain:

• Higher demand accompanies the peak season. Higher than usual demand can lead to bottlenecks and other problems, revealing the significant issues associated with current performance.
• Customers have a higher expectation for faster, lower-cost shipping. While customers always have hope for low-cost shipping, their concerns and demands are amplified throughout the peak season. As a result, shippers and supply chain leaders must work diligently to ensure their needs are met.
• Lack of available capacity, carriers, resources, and inventory. The right inventory management strategy will make or break successful inventory management for the coming quarter. Instead of blindly ordering products based on assumptions from data in July, a period for which most organizations begin planning supply chain peak season operations, supply chain leaders need to think about the whole picture. They need to understand the present state of the market and not rely on last’s quarter’s estimates. In addition, leaders need to be forward-thinking in predicting what may occur, and how those factors will influence purchasing decisions.
• Uncertainty regarding policies that affect international trade. In fact, as reported by Logistics Management, Chris Rogers (Panjiva Research Director) shared his thoughts on policy uncertainty and peak season, “On one hand, Peak Season will be earlier than normal,” he said, ” and on the other hand, it remains to be seen if companies will play chicken with President Trump and maybe consumers pay the price.” Rogers goes on to say, “It is important for logistics services providers, freight forwarders, and ocean cargo carriers…to be ready for an early Peak Season, but it may be one that does not come. This really cannot come at a worse time for the container lines that are struggling with profitability and are talking about cutting routes and making potential alliances. This uncertainty is not going to help.” The point Rogers is making is that there is always uncertainty that exists beyond a supply chain leader’s control. Uncertainties can lie in government policies, market forces, or even natural disasters. Leaders must bake in the unknown, also known as the supply chain “Black Swan” into any peak season supply chain planning.

An Advanced WMS Is Critical to Effective, Efficient Supply Chain Processes

An advanced WMS is the foundation of effective, efficient peak season processes. Through an advanced WMS, supply chain leaders can unlock new insights, understand their existing operations, find solutions to problems, and secure more resources. Moreover, many advanced warehouse management systems reside in the cloud, providing advantages for deployment across multiple locations and real-time visibility to vital supply chain processes.

How to Use a New WMS to Improve Peak Season Operations

Supply chain leaders should follow these fundamental tips to improve warehouse and supply chain performance through peak season. 

1. Validate all carrier-shipper relationships.
2. Revisit training with permanent and temporary staff members.
3. Allocate responsibilities to staff appropriately.
4. Think about the expanded capacity options during peak season.
5. Take advantage of third-party services.
6. Eliminate batched orders, opting for waveless picking strategies.
7. Track maintenance; give all equipment a tune-up.
8. Use the WMS to manage cross-docking and deconsolidation programs.
9. Automate exception management.
10. Get supply chain partners on the same page via integrated systems.

Achieve Your Supply Chain’s Goals With the Right Supply Chain Partner

Achieving success through supply chain processes throughout the peak season is possible. Still, it comes at the cost of taking a serious inventory of current solutions, platforms, and opportunities for improvement. As a result, shippers and supply chain leaders should start thinking about evaluating their warehousing and distribution strategies, focusing on the WMS as the system of choice and the most exceptional opportunity for improvement. Get your organization on the path to peak season success by reaching out to a Veridian supply chain system expert by requesting a consultation today.

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The Problem With Poor Peak Season Fulfillment Strategies

There is a common factor plaguing peak season fulfillment strategies. Poor strategies focus on maintaining the status quo and relying on outdated systems. Outdated systems are not just those that were implemented back in the 1980s. Even systems implemented in this decade are obsolete if they cannot share data between other supply chain platforms. Moreover, failure to apply data and consider the real impact of the upcoming peak season will lead to significant problems.

For instance, reduced application of data may lead to over-ordering or under-ordering inventory, failure to hire enough seasonal workers, an inability to secure available shipping capacity, and more.

The Right Strategies Create the Triumvirate of Warehouse Management

There are three peak season fulfillment strategies that should be used in a closed circuit to create balance in warehouse management. The triumvirate of warehouse management includes conducting robust replenishment, keeping employees productive, and guaranteeing customer service. These three factors must work in a closed-loop, and any failure within the loop will naturally lead back to failures in the remainder. As a result, all strategies for peak season fulfillment must consider the whole operation and how changes may affect other processes. In a sense, it all goes back to end-to-end visibility and recognizing the dependent and independent processes throughout the warehouse.

Best Practices in Building Peak Season Fulfillment Strategies

There are ample ways to build better peak season fulfillment strategies. Instead of getting bogged down in the details, let’s focus on nine leading concepts to boost peak season warehousing management, including:

1. Lean inventory is not optimal for peak season fulfillment. While lean inventory is excellent throughout the year, it can lead to severe consequences during peak season. With a record of increased demand for each peak season, lean inventory strategies may fall short through peak season.
2. Warehouses need to run around-the-clock through peak season. Fulfillment becomes more time-sensitive as the season progresses. Warehouses should run fulfillment around the clock. However, they must ensure that all evening and night workers receive ample time to rest between shifts, as well as amenities to encourage productivity, including on-site cafeterias and food delivery too. Yes, night and evening workers need a bit more care through the season.
3. Track delivery and delivery schedules. Once a shipment leaves, warehouses should still track its progress. Failure to monitor timely delivery after shipping will result in angry customers.
4. Benchmark systems to learn their maximum throughput. Benchmarking helps warehouse leaders understand what systems can and cannot do to meet peak volume.
5. Reslot the peak season item areas. Reslotting peak season areas can improve performance and reduce delays as customer needs evolve through the season.
6. Take advantage of omnichannel inventory. Omnichannel inventory includes order fulfillment strategies that leverage brick-and-mortar stores to complete more shipments.
7. Integrate systems. Integration improves collaboration and reduces the risk of errors.
8. Diversify your supply chain. Working with more supply chain partners lowers overall risk.
9. Tap the value of on-demand warehousing. Patrick Cadic of Total Retail notes that on-demand warehousing enables scalability without long-term contracts for peak season demand.

Put the Right Systems in Place to Boost Peak Season Operations

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Implement Waveless Picking Strategies

One of the first ways to improve inventory management transforms traditional picking processes from a wave-based system, complete with peaks and lulls, into a waveless strategy, says Supply Chain 24/7. Of course, implementing a waveless strategy will require a reevaluation of your current systems and planning processes.

Reduce On-Site Stock by Leveraging Drop Shipping

The best way to gain improved accuracy and insight into your inventory is to eliminate it from your purview. In other words, let the manufacturers and distribution centers handle the shipping for online orders. Instead of bringing stock from one location to your location, drop shipping offers the option of having manufacturers send orders directly from the factory to consumers, eliminating any concern with handling inventory in your facility.

Collect and Analyze Data

An efficient warehouse must collect and analyze data. Real-time visibility is of significant value, but if an organization cannot plan for changes in the market, or seasonal fluctuations in the latest trends online, inventory will fall below standards. As a result, more customers will abandon your company for Amazon and Walmart.

Reevaluate Your Floorplan and Slotting Strategy

It cannot be said enough. All warehouses must reevaluate the floorplan and slotting strategy. A poorly organized layout and static slotting will lead to delays for workers, resulting in delays in order fulfillment. Unfortunately, additional problems arise as workers become more involved with products, increasing the number of touchpoints along the way. Consider further that increased touch points result in other risks.

Monitor Your Workforce, Using Technology to Track Personnel Movements and Efficiency

Your labor management system must reflect advancements within the industry as well, leveraging technology (including GPS sensors and wearables) to track employee movements. This provides a way to measure their performance, as well as ensure the safety of workers. Even in air-conditioned warehouses, workers could suffer from heat exhaustion due to the exertion needed to fulfill basic tasks. More technology within the labor-management system will benefit your company.

Use a Modern Inventory Management Software, Including a WMS

If your warehouse management system (WMS) has not been updated within the last five years, you are far behind. Upgrade your existing systems to take advantage of new, real-time inventory visibility capabilities. Furthermore, a modern system enables automation, and it is equally important to use automation wherever possible. Amazon had it right when reviewing the use of robotics within the supply chain for order fulfillment and repetitive processes.

Integrate Systems

A final step in the ways to improve inventory management is dependent upon how your systems communicate. Disparate systems will result in inefficiencies and overlook data. Avoid these problems by integrating your systems and streamlining communication between them.

Get Ways to Improve Inventory Management in Your Business With the Right Strategy and Partner

Reap the benefits of business success and gain experienced ways to improve inventory management by leveraging the full suite of available technologies and services. Find out what your organization needs to do to get started by contacting Veridian online.

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Support All Channels

The leading benefits of OMS implementation are derived from its ability to support all channels. This includes brick-and-mortar locations, online ordering, ordering from a store, and more. Since the system relies on data from across the entire supply chain, it empowers omnichannel success.

Manage All Customers

The same benefits of OMS for boosting omnichannel success also have a natural implication for managing customer experiences. Your company can connect and understand consumers across all channels through the use of such a system.

Launch and Manage Comprehensive, Companywide Promotions, and Product Offers

When it is time to run a promotion or other offers, the OMS can take on additional benefits in the form of marketing perspectives. Since the system provides data on activities within each channel, the comprehensive review of data will enable better planning of promotions.

Ensure Consistency and Accuracy in All Channels

A dedicated OMS also improves consistency and accuracy across inventory management in all channels and warehouses.

Manage Payment Processing and Tracking

Another factor to consider when upgrading supply chain systems is how payments are handled. Now, payment processing is a significant aspect of rapid supply chain management, but an OMS allows for streamlined payment management in both incoming and outgoing payments. In other words, the OMS may be useful in directing refunds to consumers and making payments to suppliers and vendors, says NetSuiteBlogs.

Supports the WMS, TMS, and Returns Management Process

The OMS is comparable to the brain of the supply chain, connecting your WMS, TMS, and returns management process. Even though each system may function independently, the data generated should be applied in conjunction with an analysis of all data collected.

Optimizes the Labor Force

Improved data mining and analysis through the OMS will also allow for optimized labor management. Supply chain leaders can refine the schedule to ensure that enough workers will be in each facility and meet consumer expectations.

Lowers Shipping Costs

Using an OMS also offers an opportunity to reduce shipping costs. Essentially, carriers may offer discounted rates for bulk shipments and consolidated shipments, as well as retailers that gain “Shipper of Choice” status. The OMS provides the first steppingstone toward achieving these capabilities and discounts. As a result, the company will see increased profitability through lowered overhead expenses.

Reap the Rewards of OMS With Integrated, Connected Systems

The rewards of using an OMS are too great to ignore, and retailers that take the time to understand the benefits of OMS implementation can propel their omnichannel supply chains forward. Of course, an OMS is only one system in a lineup of software that can benefit your organization. Visit Veridian online today to find out more about how the right blend of technologies will benefit your business.

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Diminished Ability of Forecast and Track Actual Trends

Inability to forecast and track actual trends is the biggest problem associated with poor inventory accuracy in order fulfillment. When a warehouse lacks efficiency in order fulfillment processes and relies on outdated inventory counts, it is also difficult to predict what will be necessary to succeed in the future. Customer behaviors change, and your reports from last quarter are outdated. Failure to have any degree of real-time visibility into inventory counts will add to your problem.

Failure to Maintain Competition With Big Box Retailers and Amazon

Poor inventory accuracy and order fulfillment will have a disastrous effect on customer service. Customers do not see all the background processes that go into ordering a product. They only know that they received an inaccurate order, paid too much, or could have purchased it from another retailer. That is the key. Failure to maintain accurate inventory will alienate customers. Such failure will drive them to other e-commerce retailers, including Amazon and big-box stores. These retailers will have the products at the prices the customer wants and can get the product to them immediately.

Increased Overstocking to Avoid Stockouts

Increased overstocking, also known as safety stock, also tends to occur when poor inventory accuracy and order fulfillment problems arise. Since the organization does not know when it will happen, the best-laid plan becomes a plan for the worst. In other words, carrying costs go up, and for perishable products, losses can be even higher.

Inability to Offer the Best Customer Experience

Any delay or problem in the supply chain will result in damage to customer experiences. Customers’ expectations reflect the capabilities of Amazon, and if your business cannot cut it, they will choose your competitor.

Loss of Cost-Effectiveness

Poor inventory planning in order fulfillment will also translate into negative atmospheres in the workplace. As a result, employee morale suffers, turnover rates increase, and the cost-effectiveness of your team and processes will decline, explains Bar Code Direct.

Put the Power of Newer, Advanced Systems to Work and Eliminate Poor Inventory Accuracy and Order Fulfillment

Eliminate the costs and problems associated with poor inventory accuracy and order fulfillment with an adequate supply chain systems partnership. Unlock the secrets to success in your operation by contacting Veridian online.

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What’s Wrong With Current Inventory Optimization Processes?

Apart from organizations that have recently invested and implemented newer warehouse management systems (WMS) and automated processes, current inventory optimization relies on outdated systems. More importantly, failure to optimize space utilization will naturally lead to reduced inventory optimization, says Multichannel Merchant. It is not enough to perform a cycle count every day or week. Cycle counts must be continuous, providing real-time inventory visibility. Furthermore, failure to optimize inventory will naturally lead to higher carrying costs, not to mention higher labor costs associated with fulfilling orders.

Omnichannel Supply Chain Success is Derived From Visibility

Omnichannel supply chain success hinges on the ability to gain real-time visibility and accuracy into the complete inventory picture from any location and throughout the entire supply chain network. With more stores being used as distribution centers and e-commerce fulfillment locations, failure to connect all systems will naturally contribute to lower visibility. Take a moment to think about omnichannel supply chains. An order may move from the manufacturer to consumer, from a storefront to a consumer, delivered to the customer’s doorstep, or be picked up within a physical store. In some urban locations and other high activity areas, significant players in the omnichannel space (such as Walmart and Amazon) have taken steps to create online order pickup lockers. In order to successfully implement in-store pickup, these locations must have access to order details. It all goes back to data validity, which means that omnichannel supply chain success depends on accurate data. Since data is the natural precursor to the application of analytics, reporting, and automation, data will naturally lead to inventory optimization in all facilities your organization uses. This includes your organization’s warehouses, storefronts, and pick up locations.

How to Leverage Inventory Optimization to Drive Profitability and Efficiency

The Internet is littered with thousands of ways to increase inventory optimization and improve profitability. However, the best list of resources will always focus on one key factor: integration between systems. That is the key to success. Inventory optimization must be continuous, rely on real-time data, leverage analytics to automate the process, and trigger a workflow that allows laborers to improve and continuously meet the demands of omnichannel customers.

Implement the Right Processes and Systems to Bolster Business Performance Now

Unlock greater omnichannel supply chain success by leveraging the latest technologies, ranging from big data to artificial intelligence. Also, remember to ensure your systems work together and function seamlessly within your operation. Find out how to get started by visiting Veridian online today.

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What Exactly Is Safety Stock?

Safety stock refers to excess inventory capped within a warehouse or other facility to avoid the problems associated with a product being out of stock, explains Supply Chain 24/7. In today’s world, if your business does not carry or have a given product in stock, the customer can find it on Amazon. It is that simple. Now, it is essential to also understand that all establishments do need to maintain a safety stock, but it should be kept to absolute minimum levels and should be based on customer expectations and data-driven results.

Challenges Associated With Excess Safety Stock

Safety stock might not seem like a big problem, but it does lead to difficulties within supply chain visibility and efficiency. Some challenges include:

• Safety stock lowers the efficiency of your inventory management strategy.
• It relies on outdated processes and data.
• It increases carrying costs for your organization.
• While it eliminates concern over stockouts, it fails to leverage advanced order fulfillment and shipping models.

How to Reduce Safety Stock With Data

It is possible to reduce safety stock through the application of data. For example, the use of data and connected inventory (including the use of voice-enabled systems) increases the accuracy within inventory reporting. Furthermore, advanced analytics can help warehouse managers see a bird’s eye view of their full needs, as well as predict what stock will be needed between now and a time in the future. Of course, the path to implementing new systems and reducing safety stock is not always clear. As explained by Supply Chain Management Review, leaders should utilize data and follow these tips to reduce safety stock:

1. Gain better visibility into your inventory.
2. Consider upgrading your WMS.
3. Track all inventory by SKUs and bin location.
4. Optimize slotting practices.
5. Connect all systems.
6. Base safety stock on actual economics.
7. Take advantage of newer shipping options, including drop shipping.

Reduce Your Safety Stock With the Right WMS

Safety stock is a necessary evil in supply chain management. No one knows when manufacturers or market fluctuations will suddenly render your inventory obsolete or place new demand for items rarely restocked. With an influx of orders from online and brick-and-mortar locations, warehouse managers and distribution centers must maintain a proper safety stock. Unfortunately, failure to maintain control over safety stock will result in higher carrying costs and even increase the risk for poor customer service. Instead of trying to maintain safety stock based on what you think will happen, let your systems and resources do the work for you and ensure your safety stock does not become a burden. Kickstart your new WMS implementation and integration by contacting Veridian online now.

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