Collect tips and tricks to scale your business from SmartTurn’s experts
Collect tips and tricks to scale your business from SmartTurn’s experts
Posted: April 21, 2020 by Ly Phan
One of the rare silver linings of the COVID-19 pandemic which has swept through the globe is the ability of businesses and people being able to adapt. Technology is helping us to remain connected and work like never before. Conference calls, remote working platforms, and other forms of cloud-based software have stepped in to keep the world moving. As supermarkets and pharmacies continue to operate against all the odds, the benefits of a simple stock control system become evident.
As we enter a new decade in challenging times, there is an opportunity for warehouses and distribution centers to embrace the latest technology to improve efficiency and productivity. One area that is a fundamental part of the success of such businesses is inventory control. By turning to cloud-based solutions like SmartTurn, companies can increase accuracy and profitability in the long-term.
It is critical for businesses to understand the importance of stock control. The inventory in warehouses and distribution centers should be treated as cash sitting on shelves. A supply chain aims to move products from the manufacturers to the end customer in the most efficient way possible,
The longer the products stay on shelves, the more resources it takes away from warehouses in terms of storage space, handling, and management. In a literal sense, time (and storage) is money. Having a stock control system that can give you real-time visibility and analysis enables your business to maximize efficiency.
The value of retaining complete control over inventory and warehouse operations can be seen in the success of the ecommerce giant, Amazon. Its unique “chaotic” method of putaway means items are placed wherever there is space in the warehouse, but it is founded on a robust stock control system. The technology and organization at its heart allow the company to utilize barcoding, robotics, and other tools that enable automated picking.
Amazon is a uniquely sophisticated example, but the point remains valid. By investing heavily in technology for stock control, the company has been able to take its warehouse operations to the next level and dominate the North American and European markets.
It’s clear that an electronic stock control system can be a valuable asset to your business. However, it’s important to break down the benefits and identify exactly how it can support warehouse operations:
A core benefit of using robust stock control software is the flexibility it allows in other warehouse processes. By using a cloud-based solution, businesses can use technology to enhance broader operations. For instance, SmartTurn can integrate with other third-party platforms such as ERP, accounting, and logistics systems. Embracing this integrated approach means companies can scale up productivity and increase profit margins.
Another advantage of using the latest stock control software is its compatibility with scanning technology. Allowing workers to scan items, through barcodes or RFID tags, will enable them to obtain accurate information within seconds, significantly speeding up the picking process. This would then lead to faster order fulfillment and delivery, which means more satisfied customers.
Stock management is an essential component for warehouses and distribution centers. From the perspective of retail businesses, stock-outs is a trillion-dollar issue worldwide, but it also affects the wider supply chain. For instance, if a manufacturer is short on certain parts, then it causes product delays and further problems down the chain.
With stock control software that delivers real-time visibility, workers will be able to set up automated alerts when level dips below a certain point. This would then prompt the restocking process and minimizes the risk of warehouses experiencing stock-outs,
At the other end of the spectrum, overstock is another common issue for businesses, mainly when dealing with items that have a limited shelf life, including groceries. A cloud-based solution, like SmartTurn, can provide that extra flexibility required by businesses. One such client, Frozen Gourmet, a wholesale grocery distributor in California, was able to generate a five day lead time on orders and reduce inventory costs.
By taking control of stock levels, companies have the opportunity to significantly increase profit margins through a mix of real-time visibility and automation.
A key element of stock control software is the ability to deliver inventory accuracy. Scientific studies have proven a direct correlation between the level of visible information and the number of inventory errors. At SmartTurn, clients have been able to increase their inventory accuracy from 91% to 99%+, a figure beyond the reach of traditional, paper-based systems.
The reduction of errors can lead to significant cost savings for businesses, which translates into more opportunities for investment and growth. Maintaining a high level of inventory accuracy is also beneficial for any supply chain, making it more efficient and slick. Argent Associates, a logistics company based in New Jersey, reported saving up to $15,000 a month through supply chain efficiencies.
A critical aspect of stock control software is its powerful analytical capabilities. By recording the data as they come in, the system can track and monitor inventory levels at all times. This helps teams to identify trends and seasonal patterns.
For instance, an apparel warehouse can use the data to forecast how much swimwear they need to stock for the summer season. Through planning and analytics, companies can efficiently optimize stock levels ahead of time - reducing the risk of both stock-outs and overstock.
Analytics can also be used in businesses with a higher turnover of products, such as the grocery sector. SmartTurn’s solution enables managers to track inventory in real-time and identify best-selling and under-selling groceries. In doing so, supermarkets and other grocery stores will be able to maximize their returns.
Each business has the primary objective of satisfying the expectations of its customers or clients. The ultimate result of retaining stock control in ensuring the satisfaction of the end-user. With a reduction in stock-outs and accurate order fulfillment, businesses have the opportunity to build their reputation and customer loyalty.
Through the blend of automation, real-time visibility, and an organized system, companies will be able to reduce the time it takes to get the products to customers with maximum efficiency. In today’s hyper-competitive online retail industry, speed and value for money are essential. With a direct link between excellent inventory management and customer satisfaction, SmartTurn’s cloud-based software offers an affordable and dynamic pathway towards this objective.
With efficient stock control, businesses can lay the foundation for growth and increasing profits. By using SmartTurn’s inventory management software, users will be able to take advantage of real-time visibility and automated processes to boost productivity and accuracy.
The fact retailers only sell 60% of its products at full retail value underlines the importance of stock management. In using SmartTurn, companies will be able to reduce the risk of costly errors that eat into already narrow profit margins.
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