Using ShipBob To Automate Your Distribution and Warehousing Management
Table of Contents
A warehouse simply describes a set of designated spaces where goods are typically handled and stored in a large commercial building. Warehousing refers to all the processes related to the storage and handling of goods in a space-efficient manner. All activities such as receiving merchandise, offloading goods, using a forklift and piling items are usually done in a warehouse. Furniture, farm products, finished goods, and machine spare parts are all commonly found in warehouses. Let’s zoom in on how ShipBob deals with the challenges in distribution and warehousing management.
What Is The Difference Between Warehouse Management And Distribution Management?
Product distribution is how businesses make products available to customers around the world. Products are purchased from manufacturers, warehoused, and distributed to customers in the same process. Distribution management refers to the efficient and profitable transportation of products from the point of manufacture to the retail level and the warehouse management in between.
Which Cases Demand Warehouse Processes And Supply Chain Operations?
- The need to control an inventory
- Absolute and total control of the warehouse
- Frequent interaction with manufacturers and vendors
- Logistics management, other than distribution
- Retailers can quickly turn around and manufacture and market goods
The more goods you store, the more likely they are to spoil, be stolen, be damaged, or become out of date. Adding value to the entire supply chain through distribution management is critical. You will be constantly collecting usable data on how your goods move from the manufacturing plant to the warehouse and the customer. You can cut bottlenecks and inefficiencies from the supply chain by locating and eliminating them.
Why Is Distribution And Warehousing Management Important?
At its core, distribution and warehousing management supports your company’s growth. If you do not have a network of warehouses or distribution centres, your retail business will be forced to store all inventory in a single location.
If you don’t implement a distribution management system, your products will be difficult to manage, and out-of-stock products are going to cause issues. With the right system in place, you can streamline several delivery processes into a single workflow to improve efficiency and customer satisfaction.
Supply chain, transaction, vendor relationship (VRM), customer relationship (CRM), warehouse management (WMS), and transportation systems are key components of distribution management systems (TMS).
What Are The Possible Inefficiencies in a Distribution and Warehouse Management?
A robust, comprehensive, up-to-to-date inventory system is not in place (IMS)
For the first time, instead of having a single authority on facts, you now have several points of data, which limits your ability to answer customer questions and to set correct orders correctly. It is because you do not have a complete inventory control system in place (WMS).
Since the warehouse staff spend a lot of time putting away, picking and packaging the merchandise, distribution facilities and transportation management slow down delivery.
Your warehouse isn’t fully optimised
Distribution channels that experience challenges with safety, logistics operations, inventory accuracy, and advanced technologies may find themselves missing out on key opportunities to optimise. As a result, the amount of movement waste in your factory increases, delivering the customers’ products becomes problematic and labour costs rise.
There is no procedure or protocol in place to deal with your transportation (TMS). You won’t be able to get carrier real-time shipping prices or route selections while customer deliveries are delayed.
The integration of your TMS and WMS does not go well
As a result, the warehouse picking and shipment processes are out of sync. Packages that should not be scheduled to be delivered until the early morning hours of the following week are sitting in your warehouse until your workers have chosen what they have to send out. As of this moment, your shipping rates have not been agreed upon. When you have large amounts of products shipped regularly, you haven’t used your negotiating power to secure value-add or volume discounts from your carriers.
The supply chain management approach takes into account the entire supply chain, recognising cost-reduction and value-creation opportunities and supports marketing in the process. To sell your products at a profit, you must have a distribution network that keeps costs low.
Three Attributes When Looking For A Warehouse Management System
The supply chain disruptions scenarios outlined above may seriously hamper your warehousing costs and distribution strategy. If you want continuous improvement for your fulfilment services, distribution and warehousing solutions such as ShipBob will help with your inventory operations.
Before managing your warehouse, you should research warehouse management systems to be certain that they meet your business needs. Here are three attributes to look out for:
1. Allows you to connect your store to third-party software(s)
A distribution solution with third-party fulfilment software like ShipBob integrates with your online stores, working the tracking, monitoring trends, and supplying customer information will all flow together like a wonderful experience. By using your sales channels, the distribution centre operations workflow will be optimised by matching the warehouse management processes. Many companies prefer to outsource the entire shipping process to third-party distribution and warehousing management logistics.
In addition to having well-stocked inventory, you should also consider orders that were placed earlier or given expedited shipping as a priority, so you can keep your promises to customers (e.g., “Any orders placed before noon will ship the same day”). An integrated warehouse management system boosts overall retail supply chain integration.
2. An ERP software that is compatible with your inventory and supply management software
You’ll want to make sure any warehouse management system you choose is compatible with your inventory scanners, terminals, labels, scales, and handheld or wearable equipment, as well as printers, scales, and other physical devices. Additionally, be sure to factor in any purchases you’ll have to make in the future.
3. Demonstrated return on investment
Companies should also research other businesses in a similar size and industry that have used the same warehouse management system to learn more about time and financial benefits.
- If you reduce the amount of time needed to complete an hour’s worth of work by one hour and improve on the percentage of accurate work, you get a savings of $Y in production costs.
- If X dollars are saved or produced, the increase in processing speed or throughput will be Y times faster.
- If you can’t justify the investment in the warehouse management system, then you cannot comprehend how it will positively impact warehouse operations.
Customer demand, particularly in distribution and warehousing management needs logistics experts to manage your finished products. An inventory management’s major advantage is the ability to work with other business processes such as financial and accounting systems. With ShipBob, you can automate your supply chain software and control your inventory forecasting, inventory counts, distribution environment, and decrease product returns. Warehouse control systems produce reliable and detailed business reports, as well as simple and quick information analyses. If you want to improve your consumer expectations, simplify your inventory management and marketing team by allowing them to identify the most popular products and implement additional marketing strategies.