Benefits consolidating warehouses

Posted by / 30-Jun-2017 22:32

Your business may be at a point where automated inventory management is needed. Automated inventory management solutions take care of tedious, time-consuming processes on your behalf – with great efficiency and precision. A.-Diamond-Products.png" alt="Automated inventory management system user: Continental D. From web store sales to phone orders to retail counter sales, knowing true, on-hand inventory levels can be tricky – unless you have an automated inventory management solution in place.So not only is your business’ valuable time freed up but accuracy is vastly improved, as opposed to using more manual inventory management methods. Diamond Products" src=" An automated inventory management solution will be able to accurately show inventory, regardless of the channel a sale occurred through.This reduces mistakes due to missed or incorrect communications among multiple sites. A company can concentrate its efforts and resources at a central location to maximize automated tracking, surveillance and theft deterrence. There are many perks to having an automated inventory management system in place. A.-Diamond-Products.png" class="aligncenter wp-image-7935 size-full" title="Automated inventory management system user: Continental D. Barcode tracking user: Chrome Industries " data-medium-file="" data-large-file="" class="wp-image-4181 size-full aligncenter" title="Chrome Industries & automated inventory management" src="" alt="Chrome Industries & automated inventory management" width="75" height="118" / Acctivate user: Chrome " data-medium-file="" data-large-file="" class="aligncenter wp-image-7939 size-full" title="Acctivate user: Chrome" src="" alt="Acctivate user: Chrome" width="694" height="313" srcset="," sizes="(max-width: 694px) 100vw, 694px" / When dealing with more complex processes such as assemblies, kitting, and manufacturing, an automated inventory management solution automatically stores component and product information in the system (such as the bill of materials), as well as updating inventory to reflect any newly assembled goods.

With a prize at stake or motivated by self-satisfaction, you’re determined to get the right answer.

For example, suppose a company stocks 4,900 units of inventory divided among four warehouses.

By consolidating to a single warehouse, the new stock level equals 4,900 units times the square root of 1/4, or 2,450 units, a 50 percent drop.

Equipment such as forklifts, bulk movers and scanners that become redundant can be sold to recover part of their costs.

The money you save from centralization can be used to upgrade the remaining warehouse facilities.

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Proponents of centralized inventory control can also invoke a mathematical formula to quantify some of the cost savings achieved when a company reduces its number of warehouses.

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