Do you have your warehouse management under control?
For those in the warehousing industry who carry non-perishable stock, it can be easy to overstock and carry extra inventory to help meet consumer demands over time. However, while this can benefit organisations in some circumstances, what if demand for stock fluctuates and you are left with not only leftover stock but more importantly your valuable cash being tied up?
If your warehouse pushes high volumes of stock in and out, then you need to be able to manage not only your costs but every level of the supply chain. A Sage warehouse management solution can help you to do just that.
Issues with carrying excess inventory
If you find yourself carrying an excess of inventory over the course of time, there will naturally be an effect on profitability and cash flow. Carrying high levels of stock at different pricing can reduce the amount of available cash flow and can incur high carrying costs and these are not the only inventory costs that you need to be aware of.
If you are holding high levels of stock for a product with low demand, you are in a position where you are holding stock that didn’t necessarily have to be there in the first instance. Without having a solution in place such as a Sage warehouse management solution, you may not have the capabilities to manage your stock levels, freeing up working capital and can run the risk of stock items becoming obsolete over time.
Detailed planning and more intelligent procurement processes can help to avoid costly mistakes and oversights. With a Sage warehouse management solution, there are strategies you can put in place to help increase inventory efficiency and eliminate manual data handling.
Reducing supplier lead-time with a Sage warehouse management solution
By having the right warehouse management software solution in place, managing the operational demands of your warehouse is simple. You can reduce supplier lead-times by knowing in advance when stock needs to be replenished, as you will be able to view real-time stock levels, giving you more flexibility when reordering and reducing your inventory carrying costs.
Centralising inventory control
By investing in an integrated Sage warehouse management solution and integrating your Sage accounts, you can have all of your data, analysis and real-time tracking of your stock in one central location, optimising your operations and reducing the risk of human errors from occurring. You can create more accurate reports, have safe stock levels for high demand items and streamline your distribution capabilities through business intelligence to maximise distribution between multi-location warehouses.
Reducing excess stock and eliminating obsolete inventory can reduce inventory issues, however, to really stay ahead of your competitors, it is essential to increase your warehouse visibility and to have the systems in place to assist with smarter planning. A Sage warehouse management solution can give you the perfect procurement tool to enable you to spend more time running a successful business and maximise your profitability.