All businesses want to achieve success, but omnichannel supply chain success requires a comprehensive level of oversight and control in your operation. Omnichannel orders may come from anywhere, so significant risks exist. However, inventory optimization can solve these challenges.
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implemented newer warehouse management systems (WMS) and automated processes, current inventory optimization relies on outdated systems.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.
Bringing Omnichannel to the Forefront of E-Commerce
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.