Efficient inventory management systems are crucial to the performance of your supply chain. If an inventory management system is flawed or mismanaged, it can lead to lower sales orders and higher capital and operating costs.
Many businesses don’t invest in their inventory or stock management – at least, not as much when compared to their other supply chain activities.
This kind of practice is counterintuitive because inventory management is the cost centre of any business. It is a critical element in your operations that can influence business profitability and success. An inefficient supply chain management system can lead to lost business, an inability to efficiently meet sales order demand, and consequently an erosion of credibility and diminished brand trust.
With Warehousing and Logistics Australia as your trusted inventory management partner, you’re assured of up-to-date inventory data and optimal stocks levels. This way, not only will you benefit from a reduction in management costs and capital investment, but you will also be making accurate business decisions based on reliable data.
WHAT IS INVENTORY MANAGEMENT?
The term ‘inventory’ refers to the goods or materials a business sells to customers for profit.
Inventory management involves everything from tracking and managing inventory levels that are received from manufacturers, ordering stock and delivering to warehouses, right up to the point where these products reach the point of sale. Efficient inventory management processes and systems aim to ensure a business has stock on hand of a product a customer wants, in the right place, at the right time.
Inventory management entails inventory visibility. You need to know when to reorder stock, how much stock to order (quantity) and where to store your stock or inventory. There are key steps or processes involved in inventory and stock management.
These include:
- Purchase of Inventory – Purchasing inventory refers to the process of acquiring and delivering the correct level of stock to a warehouse. The amount of stock acquired and stored within the warehouse is based on previous sales data and customer demand.
- Storage of Inventory – Stock is stored securely within the warehouse facility until a customer order is placed.
- Profit Gain from Inventory – To fulfil customer orders, the stock is pulled from the warehouse storage inventory. These are then shipped and delivered to customers who pay for the goods. Note that the number of units of a product available for sale is always controlled carefully.
Every business needs to have an accurate view of its inventory. Without inventory management, you could be losing sales without realising it.
HOW DOES INVENTORY MANAGEMENT WORK?
The management and control of inventory entail the use of inventory tracking software and technology.
Manual systems of stock control are prone to human error, and therefore are more likely to be inaccurate. You can then use automated systems that require computer-based tracking and tracing technology (e.g. barcodes) or automated identification and data capture (AIDC) technology (e.g. the use of radio-frequency identification or RFID chips).
The primary goal of using inventory management software and technology is to keep track of orders, the amount of inventory and total sales. Without the right inventory management system, especially for in demand goods, order fulfilment is not possible.
When order fulfilment does not happen, you lose customers and business in the process. However, with Warehousing and Logistics Australia as your inventory management partner, order fulfilment levels will always be at 99.9%.
With our help, you’ll have accurate, updated stock information, so you’ll know exactly how much many items are leaving the warehouse and are being delivered to customers at any given point. You’ll also know what product item quantities remain in stock, on the shelves, and in the warehouse.
You’ll have a clear idea of which items are fast-moving and require more inventory, and which product items are slow-moving and may need to be phased out gradually. Based on available data, you can then make better, more well-informed inventory control and business decisions.
WHAT ARE THE BENEFITS OF INVENTORY MANAGEMENT?
Keeping a watchful eye on your physical inventory levels or periodically conducting stock takes protects you from possible common inventory errors and losses. We utilise the most up-to-date advanced inventory management software and inventory management techniques to ensure that your inventory levels always accurate. With Warehousing and Logistics Australia, you’ll always know how much stock you have on hand at any given moment.
Our efficient inventory management software and processes can benefit you in the following ways:
- Inventory Control – Provides accurate data on your inventory and stock levels, thereby preventing issues related to shortages in or excess inventory items.
- Inventory Organisation – ensures your inventory is well-organised, safe and accessible in a warehouse and helps speed up order fulfilment so customers are happy.
- Save Time and Money – You no longer need to do physical recounts to ensure the accuracy of inventory item data.
- Boosts Productivity – Enhances efficiency through the use of innovative inventory management tracking software and tools
- Balancing Stock Levels – Accurate inventory management enables you to meet customer demand consistently, leading to customer retention and repeat customer business.
At Warehousing and Logistics Australia, we’ll make sure you enjoy all these benefits, and more!
WHY USE A 3PL EXPERT FOR YOUR INVENTORY MANAGEMENT?
As an eCommerce retail business, your goal is to grow and develop your business.
However, scaling up carries with it some inherent demands and challenges, particularly in the supply chain. This is where a third-party logistics (3PL) provider like Warehousing and Logistics Australia can play a critical role.
Working with us means:
- You gain experience, knowledge and expertise of the entire supply chain and order management process.
- You can develop a deeper understanding of local and international shipping regulations and issues, including customs duties, documentation, etc.
- You won’t need to worry about compliance with overseas shipping protocols.
- You can save time and money on the costs associated with acquiring a warehouse space, acquiring the right technology, making container transportation arrangements and paying more holding expenses.
- You can the flexibility necessary to scale operations and manage inventory levels based on demand rate, available stock levels and sales data.
WHY CHOOSE WAREHOUSING AND LOGISTICS AUSTRALIA?
Warehousing and Logistics Australia has been in the inventory management and 3PL services business for over two decades. We have helped many eCommerce businesses across multiple industries within Australia manage their inventory levels, optimise their supply chain and improve their order management processes through our advance 3PL services. We have the warehouse facilities, experience, human resources and cloud based software to provide you with efficient, reliable and accurate inventory management services for your eCommerce retail business. Our warehouse is safe and secure and our advanced logistics and inventory management software can seamlessly integrate into your eCommerce system. Best of all, we offer customised 3PL warehousing solutions that go beyond simply keeping track of managing your inventory. We go deep into your business to ultimately come up with the best solution based on your individual needs and situation. If you wish to know more about our inventory management systems or other 3PL services, please contact Warehousing and Logistics Australia by sending us an enquiry, calling (08) 7228 0500 or emailing info@wda-wa.com.au today!
