Table of Contents

Real-Time Inventory Management with WMS

Introduction

As a scaling ecommerce brand, you’re looking to improve your warehousing to be a step ahead of the competition. While determination is definitely good, you must know the best inventory management practices, such as automate inventory tracking, optimize inventory levels, and more accurate demand forecasting. Real time inventory visibility is absolutely key to inventory control and optimizing warehouse operations.

If you aren’t sure what it means or have a basic idea of it, but want to get a deeper understanding of it then stick around. We’ll cover all you need to know about WMS and the benefits and challenges of real-time inventory.

What Exactly is WMS? 

A warehouse management system (WMS) is a software tool that lets you keep track of every warehouse operation. From the moment procured goods arrive till they leave for fulfillment centers, you can keep tabs on all important tasks. 

Apart from keeping inventory records to track inventory, it can also help you optimize processes in your supply chain, such as pick and pack by providing analytics on worker performance and labor management. If needed, WMS software may also be able to create shift schedules (with the help of warehouse managers) and automatically assign tasks to the right person based on their skills and past performance.  

There are multiple ways you can keep track of goods, including ERP (Enterprise Resource Planning), but the most common methods include barcode scanning and tagging items with RFID tags. The WMS software will display live updates as workers move a product in the warehouse from one location to another. 

How Real-Time Inventory Lets Brands Maintain On-Time Fulfillment 

Below, we’ve listed seven ways real-time inventory allows ecommerce stores to deliver goods on time and save logistics costs. 

1. Avoid stockouts/overstocking

When you have real time data on how much inventory you have stored, and you're assured of the inventory accuracy, you can make strategic reorders to avoid stockouts during peak order seasons. The same is also true when you have more inventory of a product than its demand. Reducing excess inventory is vital, so tracking your inventory movements cause help dramatically reduce costs. This is why it's so important to ensure you are tracking accurate inventory levels.  

With warehousing software, your team can easily forecast its demand and only restock when consumers want more of it. This lets you prevent overstocking and spending extra money on goods that may never sell. You can make more informed decisions by tracking future demand and increase warehouse productivity if you organize inventory accordingly.

2. Display live stock levels to customers 

A modern feature that various ecommerce stores provide is displaying whether an inventory is currently in stock or not. This is only possible when you have real-time inventory data. Advanced analytics can help you display product information in accordance with customer demands.

Real-time inventory tracking has significant benefits if it's carried out across multiple warehouses and sales channels. By showing customers what you’re able to ship, you set realistic expectations and ensure that refunds/delayed orders are kept at a minimum. 

3. Reduced manual labor 

By using a smart solution to handle your warehousing processes, you can automate inventory count and mitigate recounting tasks. This enables workers to focus on more important tasks, such as picking and packing or material handling. Additionally, some software also lets you save time on other manual tasks like filling invoices and creating shift schedules. 

4. Mitigate discrepancies 

If you’re managing all inventory information using spreadsheets then chances are that you’ll find variances during audits. This can happen due to manual errors or warehouse thefts that go unnoticed until the recounting process. 

However, with a smart warehouse management system in place, all your inventory is tracked in real-time, enabling you to take action when discrepancies occur in real-time. 

5. Improved demand forecasting for goods 

Similar to the point above, using inaccurate spreadsheet data to forecast demand trends will result in unreliable forecasts. Since your team may not account for any inventory that was damaged or lost, you may end up with inventory shrinkage. 

Live inventory data helps to consolidate accurate information in place, which in turn helps your team to make better predictions for future sales.  

6. Prevents frequent stock fluctuations

Warehouse software also helps you keep stock fluctuations at a minimum. By leveraging a just-in-time inventory model, you can order only the amount of goods you need at the moment in fulfillment centers. 

It’s good to note that this works best for brands that have precise data on their inventory at all times since mistakes here can result in shortages. 

7. Fosters better supplier relationships 

When you share accurate inventory data with suppliers, you set realistic expectations with them. This can come in handy when you’re facing higher demand trends and let suppliers know about it in advance. 

When suppliers know about your real-time inventory data and future forecasts, they have enough time to prepare bulk orders in advance. If you suddenly inform them about a large order, they may not be able to fulfill it instantly, causing more delays in your overall supply chain. 

Biggest Challenges in Inventory Management  

Now that we’ve covered the benefits of real-time inventory management using WMS software, it’s time to see the three biggest challenges that businesses may face while handling inventory. 

1. Fluctuating demands

Consumer demands can instantly go south due to various factors like disasters or economic reasons. This makes it extremely difficult for online stores to forecast suitable trends that meet current demand. 

Even so, using a forecasting model that considers such factors can help you mitigate risks and maintain adequate stock levels for all occasions. 

2. High carrying costs 

The longer inventory stays in your warehouse, the more you’ll have to spend to move it around. From equipment use to extra manual hours, your logistics costs can easily pile up. 

If you’re not selling enough products, your logistics costs can quickly become a burden. Hence, you must ensure that you incorporate warehouse management software that lets you walk the fine line between overstocking and stockouts. 

3. Inefficient warehousing practices 

Poor warehouse practices, such as messy layouts and lack of vertical spacing can lead to inefficient operations that cause shipping delays. The best solution to tackle this challenge is implementing best practices, such as using warehousing software, optimizing shifts, and introducing vertical warehousing. 

Overall, you want to ensure that repetitive tasks are handled with technology while critical work like conducting compliance audits is done manually. 

Final Words 

In conclusion, real-time inventory management with WMS is essential for ecommerce brands that wish to maintain high customer satisfaction. By using warehouse software, businesses can unlock multiple benefits, such as better forecasting, reduced labor, and ultimately saving logistics costs. If you are searching for a warehouse solution, remember to consider all its features before making a decision. 

Interested in knowing more about ClickPost?
Get tailor-made solutions for your business today