Did you know that over 70% of companies are planning to use a mobile device for inventory management to streamline their operations? This is especially true of the 3PL, Warehousing and Transportation related enterprises, primarily because there are numerous benefits that contribute significantly to the “bottom line” when implementing an effective customized Inventory Management Solution. Here we’ll take a quick look at 5 key top benefits. Let’s begin by looking at the lifecycle of a typical pallet in an average warehouse.
We understand that your warehouse is neither typical nor average, but it helps to review the basics before developing a plan specific to your operations.
The Journey of a Pallet: From ASN to Delivery
Our story begins with a pallet as part of an Advanced Shipment Notice (ASN) being loaded onto a truck, ready for delivery to a 3PL Warehouse. This ASN contains crucial information such as the origin of the product, the quantity being shipped, lot code information, and the destination. This information is invaluable to 3PLs because it allows them to be proactive. The office can schedule an appointment based on the expected delivery date, the warehouse can plan for labor based on the quantity and scheduled delivery date, and management can forecast volumes and expected revenue.
Benefit 1: Knowing What Inventory to Expect
With the ASN in hand, the warehouse knows exactly what inventory to expect. This foresight enables efficient planning and resource allocation. The office schedules the delivery, the warehouse prepares for the incoming stock, and management aligns their forecasts with the expected inventory. This proactive approach minimizes surprises and ensures smooth operations.
Benefit 2: Easily Locate Product Throughout Your Process
Once the ASN arrives and the product is received, the warehouse can systematically identify the product as it comes off the truck. Utilizing an inventory management solution, the product is moved to a storage location, and the location record is updated. Now, anyone in the warehouse can look up the inventory to know exactly how much there is and where it is located. This ease of locating products throughout the process saves time and reduces errors.
Benefit 3: Visibility to the Entire Life Cycle of the Product
Throughout its stay in the warehouse, every action taken on the pallet is recorded. Whether it’s moved to a new location, cycle counted, put on hold for quality inspection, or transferred to a new type of pallet, a modern inventory management solution tracks all these activities. This comprehensive visibility ensures that you know the entire life cycle of the product while it’s in your warehouse, enhancing traceability and accountability.
Benefit 4: Accurate Ordering and Order Fulfillment
When it’s time for the pallet to be picked and shipped on an outbound order, the inventory management solution identifies all available products in the warehouse and determines which pallets should go on the order. This process considers requirements such as First-In-First-Out (FIFO) or First-Expired-First-Out (FEFO). The product is then committed to orders, picked, and shipped accurately. This precision in ordering and fulfillment reduces errors and improves customer satisfaction.
Benefit 5: Synergy Across Functional Departments
The integration of an inventory management solution fosters synergy across various departments within the supply chain. Customer Service gains visibility into incoming inventory and current stock levels, Operations can manage their workload and labor activities efficiently, and Management has real-time access to all activities throughout the day, week, or month. HR departments can schedule workers on an “as needed” basis and billing departments can more accurately invoice for specific service based on variable pricing and the specific cost of labor factored in. This interconnectedness ensures that all departments are aligned and working towards common goals.
Conclusion
Inventory Management Solutions such as those attainable with highly customizable Warehouse Management Systems offer game-changing benefits to 3PLs and warehouses that choose to implement them. These solutions empower you to know what inventory to expect, easily locating products, have visibility into the entire life cycle of the product, ensure accurate ordering and fulfillment, and foster synergy across departments. These outcomes are indispensable for modern warehouses and can ultimately make the difference, putting your organization on a growth trajectory and allowing you to create or continue an intergenerational legacy.