Month: March 2023

Automated vs Manual Inventory Systems

Posted on | by chrisqureshi | Leave a Comment on Automated vs Manual Inventory Systems

Order management is the process that takes place in a company to get purchases to the customers who have bought them. That process starts the moment items and goods are paid for online; covers their collection from the storage facility along with packing and shipping; and ends when they’re successfully delivered to your customers.

On the face of it, order management is fairly straightforward, and for the longest time, companies carried it out manually, having employees make lists by hand and checking everything off as they went. But as sales companies grew larger and the selling platforms available to buyers multiplied, manual methods became inadequate and automation was introduced. Called an order management system, like any automated system, it streamlines the order management process, which increases efficiency, and eliminates many mistakes.

In this blog, we’re going to explore the benefits of OMS, and show how this digital method trumps the manual one.

 

What is an order management system?

An order management system is software that’s part of the inventory management system (IMS). Programmed with details about a company’s inventory — what it’s made up of and where each item is — it uses these data as a kind of foundation, registering incoming sales and overseeing their fulfillment. It can control all of this for orders coming in from numerous platforms — online marketplaces, social media, apps, and websites, as well as offline brick-and-mortar stores — taking care of them capably simultaneously. And because the software maintains its knowledge of the inventory, it adjusts the data as items are removed or added, giving a company accurate, up-to-date information and complete oversight of everything.

An order management system is especially useful for businesses that deal with inventory, like retailers, wholesalers and manufacturers. That’s the area we’re focusing on here.

 

A breakdown of everything OMS takes care of

  • Sales,
  • Inventory control (maintaining a specific level of inventory in the warehouse),
  • Customer relationship management (CRM),
  • Processing payments,
  • Shipping,
  • Returned goods, and
  • Reporting.

 

Automation with OMS vs. doing things manually

If you’re using a manual system to handle your order management — keeping records on spreadsheets and updating them by hand — and feel it’s working for you, you may think you don’t need to automate. If that’s the case, here are some pointers to take a close look at:

Preorders and backorders

Preordering — a customer putting in a request for an item before it’s in stock — is a well-used marketing strategy. By offering items ahead of time, a company hopes to create buzz for the product; it’s also a way for companies to gauge if there’s interest in a new product. Back orders are, of course, similar in that the customer is going to have to wait for their item to be in stock, but that’s because the company has run out of it.

In both instances, an automated system will maintain the orders in its memory until the items are in stock and the order can be filled. The system takes care of everything, and there’s nothing for employees to do. But if these orders are jotted down by hand somewhere by somebody, they could be forgotten, especially if it takes a long time to get the items in stock.

Real-time visibility

When it comes to inventory, it’s vital for a business to know exactly what it has and where it is at all times. This knowledge informs every business decision made, from buying new stock and storing it to implementing marketing strategies like sales quoting and discounts. An in-depth understanding of inventory and its turnover will also determine whether to expand the business or not.

While it’s relatively easy to log incoming and outgoing inventory on spreadsheets, the more platforms a company sells on and the more storage locations it has, the more complex tracking manually becomes and the more can go wrong.

If you’re going to make the best business decisions, the information you’re working with has to be completely reliable. Which is why an order management system is a good way to go. The automated system doesn’t just give accurate information, it does so in real time on a single screen. That means that anything and everything you need to know about sales flows and inventory levels, irrespective of the number of outlets or storage facilities you use, can be brought up instantly from anywhere.

Stockouts and overstocking

If a company runs out of an item, it has a stockout; if there’s too much of an item in stock, it’s called overstocking. Neither situation is good. With stockouts, prospective customers can go somewhere else and sales can be lost; with overstocking, a business can be stuck holding items that have gone out of fashion or that maybe even go past their expiration dates. Stockouts and overstocking can also throw off the whole order management system.

While a smaller company can prevent these scenarios by making sure they always have the right amount of stock, human error is always a possibility. Mistakes are less likely with an order management system. Automation will keep on top of inventory levels, make sure they’re consistent, and, in the case of items that have sell-by dates, make sure they’re only sent out if they’re still good.

Safety stock

Safety stock is a cushion. It’s a little bit more than you think is needed to cover for the unexpected. Safety stock levels are influenced by:

  • The belief that there will be a sudden rush on the items — like Christmas,
  • The time it takes for the supplier to fill an order for more, and
  • The length of time delivery will take, such as longer for a shipment from overseas.

These calculations can be complex, especially when a large number of items and suppliers are in play. But while an experienced employee is capable of making these calculations, there’s inevitably going to be an element of guesswork involved; guesswork that could result in miscalculations being made and stock running out. An automated system, however, is able to process the information with a preciseness that’s hard for most people to match.

Warehousing

For companies that have more than one warehouse, coordinating them is good business. For instance, if some items sell better from one location than another, more of them should be housed there. Similar items should be stored in that location in bulk. As another example, it may be logistically better to fulfill an order from one warehouse than another. In that case, the items for the order should be routed to that warehouse.

Recognizing situations like this, in good time, is difficult without automation.

Bulk actions

Items that are recalled have to be pulled from storage and sent back to their suppliers, and the customers who ordered them before this have to be told what’s happened and offered something else in its place. Without automation, each customer has to be contacted individually, but an order management system can take care of it with a single action.

Customer satisfaction

Buyers who have had a good shopping experience — measured by the fact that the buyers received the goods they wanted — are said to be satisfied customers.

An order management system helps you create satisfied customers. It automatically monitors inventory levels, reordering when stocks run low and removing them from online channels if items do run out. If an item does run out, the system lets buyers know and offers the option of backordering — placing the order and waiting until the item is in stock. Trying to handle this with spreadsheets and having someone literally look at stock to check how much of it there is is going to lead to disappointed customers.

Scaling

Whatever method is used for order management, it has to be able to cope when the business grows. This might not be the case if operations are carried out manually, but when things are automated, there are very few issues, especially when it comes to order management.

 

Final words on manual vs. automated order management systems

For order management, an order management system, such as Cin7 Omni, with automated features is faster, more reliable, and more efficient. Ultimately, that means it helps to make your company more cost efficient and more profitable.

When you’re ready to switch up to automation, give us a call. Or if you want to know more, schedule a demo with one of our experts. You’ll be glad you did.

How to make improvements to inventory control in 2023

Posted on | by chrisqureshi | Leave a Comment on How to make improvements to inventory control in 2023

Inventory is the backbone of retail and manufacturing companies, and managing it as it moves through the supply chain is a crucial task for businesses. From ordering to storing to using inventory in manufacturing processes or shipping it out to customers, there has to be oversight to ensure there’s always enough stock to meet demand.

Managers and company owners have to balance this demand with the cost of both the product and storing it. That’s what inventory control is all about. We’re going to look at the ways good inventory control makes businesses more efficient and put forward ideas to make the system better.

 

Why inventory control is important

More chance of items staying in peak condition

Any stock that’s damaged in storage is a financial loss for your company. Inventory control can reduce or eliminate damaged goods by tracking items closely as they move through the supply chain. When carried out thoroughly and accurately, stock gets rotated through the system faster. This means items spend less time in storage where they could sustain damage, resulting in a higher probability of goods being top quality.

Maintains the right levels

While there always has to be enough in stock to satisfy demand, having too much of any item is not good for the bottom line. Good inventory control finds those correct levels, ensuring they’re maintained while adding a bit more for emergencies – safety stock.

Simplifies audits

When the inventory control is on point, all the information needed for an audit is at your fingertips. This saves a company time and money.

Less waste

Inventory control doesn’t just mean keeping a close eye on stock as it moves through the supply chain and its levels in storage, it also provides data about which items are selling and which are not. This informs buying decisions, ensuring you’re not left holding unwanted stock. Unwanted stock is a drain on resources, both space in the warehouse and finances.

 

Ways to improve inventory control

Create a good floor plan.

A good floor plan in a warehouse makes everything easily accessible and facilitates movement around it, giving a boost to productivity. To achieve this, items that move faster should be upfront, heavy items should be in low shelving, and walkways should be easy to navigate. Signage that’s large and clear needs to be posted everywhere too. It’s how warehouse workers find their way around.

Strengthen relationships with suppliers.

Good relationships come down to communication, and that starts with getting to know the contact person at each of your suppliers. When you have a dialogue, you build trust, something that, in turn, puts you in a position to negotiate better rates, return anything unsold, and turn your purchase orders around faster.

Use a warehouse management system.

An inventory control system keeps tabs on items as they move through your entire supply chain, and a warehouse management system maintains complete oversight over the storage facility. Adding a warehouse management system increases efficiency and reduces errors and confusion.

Conduct regular audits.

It’s important to know that your financial records accurately reflect the stock you actually have. That’s why you have to conduct these audits regularly. Fortunately, your inventory control system makes this relatively easy and painless.

Label properly.

For your supply chain to work as efficiently as possible, every item has to be clearly and correctly labeled. Nowadays that means using barcodes, QR codes, and scanners. These digitized systems also help with real-time inventory control.

Create reports.

Inventory control systems collect and store a lot of data, and the data can be incorporated into reports about your inventory. These reports can contain information that stretches from stock levels to items that are out of stock to items that have become obsolete to financial statements. Configure this information in whatever way you want, but do produce the reports regularly. It will help you keep oversight on your business.

Cycle count.

Basically a quicker and more efficient method for stock taking, a cycle count only involves a small section of the warehouse at a time. It’s usually practiced as a continual process, systematically working from one end of the facility to another, then starting at the beginning again when the process reaches the end. Cycle counting means you don’t have to shut operations down for a few days, as with traditional stock audits that count everything at the same time. In addition to keeping the supply chain in running order, counting a section at a time like this is actually more accurate.

 

Wrapping up

Having good control over inventory is essential for a business to thrive.Cin7 Omni can be a great help. With an array of tools to track inventory and maintain good levels, you’ll have the control you need to have. Our experts are standing by to tell you more and give you a demo. Click here to schedule a time that’s right for you.

How lean warehousing cuts waste and costs

Posted on | by chrisqureshi | Leave a Comment on How lean warehousing cuts waste and costs

The global supply chain is growing at a tremendous rate, putting pressure on wholesalers and retailers to get more mileage out of their warehouses. These giant storerooms must hold more inventory, and stock has to be processed faster. A good way of achieving this is by adopting a lean method of warehouse management.

 

What is the lean approach?

Developed by Toyota for its auto manufacturing plants, the lean approach is all about paring processes down to a minimum, leaving only what’s necessary and essential in place. When applied properly and strategically, a lean approach can significantly reduce costs. It can also improve customer satisfaction.

 

What is lean warehousing?

Just as the lean approach cut out anything unnecessary in Toyota’s manufacturing plants, in a warehouse, it means having the least amount of inventory to satisfy demand while streamlining processes to ensure there are no extra steps.

In addition to reducing overall cost and increasing efficiency, lean warehousing also leads to more accurate control over inventory. With such control in place, the whole supply chain runs smoother and more efficiently, and customers get their products in good time.

Here are a few more ways lean warehousing helps retailers and wholesalers:

  • Provides better visibility into warehouse activities,
  • Enables quicker decision-making,
  • Reduces lead times,
  • Improves operational efficiency,
  • Ensures the accuracy of data, and
  • Reduces unnecessary inventory.

 

How does the lean approach reduce waste in a warehouse?

Less wasted inventory

With the lean method, a warehouse stocks a bare minimum of inventory, holding only what’s going to be used or sold in the near term. As a result, there’s less chance of a company being left holding stock it can’t sell.

More cost-effective transportation

Here, the lean approach means finding direct routes when making deliveries. To meet customer expectations, transportation should be aligned with customer service so the entire transportation process becomes smooth and cost-effective.

Efficient flow of inventory

The route taken by inventory in a warehouse should be the quickest and most effective. This route goes from collecting the items to getting it to the packing department and the packing process itself. In other words, every time inventory moves from one area to another, it should only be in the service of the actual fulfillment process. This also eliminates the time inventory sits in the warehouse.

A system is overprocessed when it has steps in it that have no direct purpose. Those steps are a waste. By applying lean warehousing principles, the whole process can be analyzed and tracked to ensure that every action taken is there for a reason: to fulfill orders as fast as possible.

No more paper

Lean principles make the warehouse go paperless. That means no paper pick tickets, packing slips, or other such paperwork. Lean warehousing shifts all these forms to electronic devices like cell phones, computers, and tablets. This can lead to big savings over time, while cutting down manual errors.

 

What are the five S’s of lean warehousing?

There are five practices that have to be paid attention to with the lean method. Each is equally important, and each begins with the letter “S.”

Sorting

This is about stock control, making the best use of the inventory. You should:

  • Remove damaged, outdated, surplus, broken and defective stock from the warehouse.
  • Only move inventory around the warehouse when it’s necessary.
  • Automate inventory control, logging it in and tracking its movement with electronic devices like scanners.

Straightening

When you’ve sorted out the stock, you have to make sure it’s organized in the best way.

  • Place frequently used items in areas that are easy to get to.
  • Clearly label the inventory, and tag everything.
  • Put up signage that clearly shows where everything is and gives directions to get to it.

Shining

This is about the whole facility being clean and tidy. When the warehouse is well-maintained, efficiency is increased and accidents are reduced. When applying shining, you need to do the following:

Have the warehouse cleaned after every shift.

  • Maintain hygiene in the warehouse.
  • Place garbage cans everywhere to prevent littering.

Standardizing

In a warehouse, all employees and managers should follow the same procedures to ensure the warehouse is run well. Warehouses are standardized in the following ways:

  • Set standards and clearly defined processes that help weed out ambiguity.
  • Make all the standards easily accessible to the staff.
  • Translate processes and procedures into simple pictures, and place them visibly around the warehouse.

Sustaining

Sustaining means making sure good operational procedures and processes are continued over time. Here’s what you need to do:

  • Implement behaviors and habits that will maintain standards in the long run.
  • Frequently evaluate success by conducting regular audits and reviews.
  • Follow up on creative ideas from the employees, and use them when they’re good ones.

 

Make your warehouse lean with Cin7 Omni

If you’d like to introduce lean practices into your warehouse, take action and get in touch with a warehouse management team that knows the method inside out. At Cin7 Omni, we’re confident in our ability to streamline your warehouse processes and can help you implement all of the five “S” operations.

Reach out to our team today, and let us help you eliminate warehouse waste, cut down overall costs and optimize your warehouse operations. Book a demo with our experts now! We are all eager to assist you.

4 ways order management can improve your customer experience in 2023

Posted on | by chrisqureshi | Leave a Comment on 4 ways order management can improve your customer experience in 2023

What goes on behind the scenes to get goods to a customer after clicking the “buy” button is a lot more complicated than most realize. While the process for getting an online order to a shopper breaks down to collecting, packing, and shipping the goods off when you consider the vast number of orders that consistently come in from many different online channels, you can see there could be complications that have to be overcome. Factor in the possibility of these goods being stored in any one of several gigantic warehouses, and you understand how important it is to have everything well organized. That organization, basically, is order management.

When order management works at its best, your customers are left satisfied. That’s because a well-run system keeps them and their needs in mind at every step. In this blog, we will closely examine how order management and an order management system make it all happen.

 

What an order management system does

An order management system (OMS) is a software application that automates every aspect of order management. It keeps accurate records of everything from the inventory you hold and the purchase orders you issue to your sales and payments. It also handles invoicing and maintains relevant customer information. All the information the system manages is stored in one location that can be accessed from anywhere.

With all the data and information it collects, a reliable and robust OMS, such as Cin7 Omni, can make forecasts about your inventory, letting you know what items to stock up on. Forecasting inventory is possible because the system knows what items are selling best and which storage locations they’re selling best from. As for working out the most efficient way to fill each order, the software can use its knowledge of where items are stored to determine which facility is best placed to fill them. This stored information about who buys what and where can also be used to make important business decisions, like offering a new fulfillment option such as curbside pickup.

 

4 order management functions that give shoppers a better buying experience

1. Inventory control

When prospective customers think of buying something from a website, they like to know that the item is available before they opt to purchase it. If your site lets them go through the whole purchase procedure — from selecting the size, color, and quantity to choosing payment options and filling in their details — and only then lets them know an item they want is unavailable, they’re going to be a little annoyed. If they go through the whole online purchase procedure, and you later send an email saying the item is unavailable or that it’s going to take a while to arrive, they’re going to be even more annoyed.

A good OMS lets you know how much inventory you have in stock and gives this information to your customers. Cin7 Omni’s inventory management software syncs your website or social media with real-time inventory availability, so customers can make more informed choices. This knowledge also enables the automated system to let your online customers know when particular items they want will be available.

So when it comes to inventory, with an order management system, you’re on top of everything, and your customers have every reason to trust you and your company. It’s what they call a win-win.

2. Delivery

Today’s shoppers like to have options, especially when choosing which way to get their orders into their hands. These options could be anything from delivery times, like one-day, two-day, or three-day shipping delivered to their homes, to curbside pickup to collecting their packages at a brick-and-mortar store (that’s BOPIS or buy online, pick up in-store.)

With its integrated warehouse management software, Cin7 Omni is designed to enhance your order fulfillment processes by expediting shipping, reducing errors, and boosting your team’s productivity. This feature is equipped with advanced tools that enable efficient management of all aspects of shipping, including order tracking, stocktaking, and label printing.

Again, a win-win.

3. Multichannel fulfillment

Just as shoppers have a lot of online and offline options when they want to buy something, you, the seller, have options. These run from numerous online marketplaces and social media to apps, email, and even brick-and-mortar stores. Nowadays, it’s called omnichannel marketing. For you as a seller, it means getting more visibility for your products and getting your name out.

Cin7 Omni offers a comprehensive solution that automates the entire order process by seamlessly integrating with all sales channels, allowing you to conveniently manage your sales from one system. By connecting all of your sales channels in one place, Cin7 Omni enables you to easily collect information about which items are being purchased from which source. This eliminates the need to manually enter and manage orders from multiple channels, saving time and reducing potential errors.

4. Reverse logistics

Last but not least, businesses often have to deal with return requests due to late deliveries, delivery of wrong items, damaged products, and more. While this can cause short-term dissatisfaction, a displeased consumer could be placated with effective return management.

Cin7 Omni can boost customer loyalty with quicker and more efficient returns and replacement logistics. You can establish the return policy and eligibility and initiate client-specific return processing. Furthermore, depending on its condition, you can choose whether to refurbish, refill, or discard the returned item.

 

Upgrade your order management system to Cin7 Omni

An OMS is good for you and your customers, but management systems do more than just handle inventory and orders. They also connect with CRM, ERP, sales, service, and commerce systems and other software you use that impacts the purchasing process. The beauty of an OMS is that when all these systems are integrated, the information each holds is available on a single platform and can easily be accessed by employees.

If you’re looking for an order management system that can help you improve your customer experience, Cin7 Omni could be the way to go. Book a demo today to learn more and understand why Cin7 Omni is the right choice for you.