Warehouse Inventory Management: Driving Business Growth

Ecommerce is a corner store to attain excellence and experience unprecedented growth in the customer service vertical. But to make this work, there are multiple hurdles that need to be taken care of- and one of the most prominent one is the supply and demand phase. Here to resolve the challenges Warehouse Inventory Management Solutions play a critical role. If you wonder how a warehouse can trigger business growth, then this post is for you. Read this blog as we have spilled the beans here!

When you think of a warehouse- the first thing comes to mind is the pile of products in a constant to and fro cycle!

But little do we realize that these storage spots are the key drivers for retailers to store and ship products to us, based on our demands.

Warehouse is no longer a storage option for retailers but a vital component to fuel success parameters on different levels.

As we all know the burgeoning online shopping era- asking sellers to invest heavily in a smooth shopping experience for customers.

Here, the role of warehouse management solutions is hard to be ignored- enabling a seamless path to store, manage, and deliver products to customers supporting the supply chain impeccably.

This all boils down to business growth and expansion in an unprecedented manner!

Are you excited to know how exactly warehouse expansion leads to business scalability and growth factors?

Just scroll this further, and find out your answer.

Let’s read it together.

Warehouse Expansion Process- Is this actually needed?

The world of ecommerce is very complex and requires different stages to work efficiently to take out the result. With the expansion of business the volume ramp-up is a common factor, and to meet this demand, retailers have an ideal choice to expand warehouse space and run the show.

As a company expands its operations and customer base, the existing warehouse space may no longer be sufficient to handle the increased demand. With warehouse software solutions it becomes a seamless journey for the business to meet the burgeoning customer demands with the right products at their end.

With such expansion, it becomes easier for retailers to store the inventory and streamline the supply chain without any hurdles involved.

A vast warehouse brings along expanded space for the products to be stored and meet the demands, aligning with the business objectives.

It goes without saying, with a structured warehouse expansion, businesses introduce different new methodologies with a reduced timeline for delivery.

Some of the most prominent benefits for retailers with this process are:

Acquiring More Space

Businesses need to deal with different challenges on a daily basis and space to store inventories is one of them.

Retailers always look for a safe and secure method to store their inventories so they don’t have to deal with the loss of products due to any uncertainty.

However, considering a space for your warehouse expansion plan needs to be taken care of with utmost precision. Failing to do so, can lead to inefficiency in the entire lifecycle of the product supply chain.

It might sound scary to you, but a failure experienced in warehouse expansion can impact a business’s future and bottom line to a larger extent.

Thus, the rule is PAY attention to every bit of the details involved within.

Improves Existing Systems

Many of us are unaware of the fact that warehouse expansion is all about a successful opportunity ecosystem that helps business sacrosanct in upgrading the facilities, equipment, and much more.

With such a plan, it becomes easier for businesses to enhance their storage capacity, maintain product management, leading to improved productivity.

No point for guessing, it offers space for implementing advanced safety measures and ergonomic workstations, promoting a healthy work environment for employees.

On the other side, businesses must not forget that with the integration of advanced technologies and automation systems, they can reduce operational costs with a streamlined structured operational model.

Safer Workplace

No one wants accidents or injuries occurring at their warehouse, so an expansion allows enforcing more protocols that’ll protect workers from being vulnerable.

Indeed, bigger space becomes vulnerable to accidents, if there is no shield of safety measures. Here , it is advisable to include a few aspects to improve safety, such as:

• Broader aisles
• Improved and eye-soothing lighting
• Specific shelves/ spaces for hazardous materials

As a result, these measures help in mitigating the risks involved in promoting a safer work environment. 

Boost Manpower Capacity

Indeed, warehouse expansion is also about increasing the resources to maintain the floor work efficiently.

Here, many businesses consider it to be an additional expense, but eventually it leads to handling and managing the tasks efficiently, without facing any glitch.

With additional resources, it turns out to be a support system for the businesses to work and perform efficiently and get an edge over the competitors.

There is another side of the story that cannot be missed here!

A new set of resources brings along new experiences, ideas, and methodologies to perform the work in the right manner. This not just boosts the positive environment, but also leads to improved productivity at work.

Pros & Cons Related to Warehouse Expansion

Are you taken aback?

Well, just like any other process there is a share of pros and cons pertaining to warehouse expansion!

Let us explore the fact without delay.

Pros of warehouse expansion

• Adds values to beat the competition in & around  
• Embarks improved productivity and efficiency ratio
• Enhances legacy system removing the clutter of inefficiencies
• Enable businesses to gain excellence
• Improves tech infrastructure for optimal results
• Widens horizons to meet burgeoning customer demand

Cons of warehouse expansion

• Requires huge capital investment 
• Increase in cost related to workforce and products 
• Time intensive process to build new warehouses 
• Location can cause hindrance 

For a business, expansion leads to growth and success, and requires planning before making a final move.

Thus, it is highly recommended to weigh all the plus and minus points, and then decide which direction is best to further.

Undoubtedly, warehouse expansion brings numerous advantages and is capable of accommodating larger and ever-increasing sets of consumer demands seamlessly.

But here is a catch!

The other hand, there are potential downsides also to be considered, which must not be ignored at any cost. 

Hence, businesses need to think about every aspect!

Introspect yourself before making the final move

Every business decision has a reason or motivation behind, that leads to success. This same strategic thought process is also applicable in the expansion process. 

Below we have brought few factors that are needed to be considered, such as:

Find out the real reason behind expansion decision

Every retailer is bound to have their own reasons for wanting to extend their reach and level up the square footage they have available. 

Whether it’s to accommodate a growing customer base, showcase a wider range of products, or simply stay competitive in the market, expanding a retail space can bring numerous benefits.

Businesses may have different reasons to proceed ahead with expansion, but there is one single objective that promotes them to take the final decision, and that is growth. 

With such an objective it becomes easier to make the right decision that fuels aspirations and pushes businesses to strive for more.

Find out and shortlist the products

Well, at the crux, it is the nature of products that determines the storage requirements, handling procedures, and transportation needs.

For example, if a business deals in perishable goods, the requirement is more towards the temperature-controlled facilities which can maintain the quality and freshness of items. But if products are large or heavy, then businesses must look for specialized equipment and facilities which can handle and store them.

On top of all these requirement parameters- the Quality must remain as a constantly checked factor. This helps in giving recognition in the market and setting a new benchmark for the competition to follow.

Quality control measures such as regular inspections, audits, and testing enable identifying and addressing any potential issues with wms technology solutions before they reach to customers. 

With such a stringent process in place, customer satisfaction is guaranteed leading to low return, refund, negative reviews with an optimized cycle of ROI generation.

Find out the Targeted Group

Analyzing your customer base and paying special attention to buyer concentration can go a long way in finding prime warehouse locations. 

Understand who your customers are and where they are located, you can strategically position your warehouses to minimize transportation costs and maximize efficiency. 

For example, find out the demographics of significant customer base, and accordingly establish a warehouse in close proximity to them. This results in reduced time and cost factors associated with product delivery, order fulfillment with improved customer satisfaction.

What are the alternatives to warehouse expansion and when to consider them?

Despite its benefits, sometimes warehouse expansion simply isn’t the right choice for your business—meaning it comes with more risks than you’re willing (or able) to take. 

Yeah, it sounds heartbreaking, but it is a fact, that you must deal with before plunging into it!

There are some prominent reasons that must be considered and evaluated to see if this move is a right choice for your business- let’s find out more!

Extremely cost-intensive

Well, on an honest note, the cost is a worrisome factor for business, as expansion demands capital investment, which is not a feasible option for many businesses.

It involves multiple expense chunks such as cost to build, new machinery, additional resources, and other infrastructure costs can sum up to be a large pool of money.

Although, the other fact suggests, businesses looking forward to expanding and increasing their inventory are in need of additional space that can meet the challenges of growing storage capacity.

Alternative Solution

Teaming up with a third-party logistics (3PL) company can save businesses from the exorbitant, upfront costs of buying or building a new warehouse facility. 

They can leverage the expertise and resources of a 3PL and benefit from their established network, operational efficiencies, and industry knowledge. 

With such collaboration, retailers get a different approach to operate and can focus on other areas to improve their efficiency and business outcomes.

Hard Scale Team

Resourcing additional headcounts which can add value to your business functions, is a time and cost-intensive process, and requires strategic planning in every aspect.

Alternative Solution

Once again, partnering with a 3PL (third-party logistics) provider, businesses can tap into their existing network of experienced professionals.

The resources with third-party are already trained in handling various aspects of the supply chain. 

As a result, businesses no longer require to invest their time and money in finding resources. At the same time they get access to a team which is well-trained in handling different challenges pertaining to logistics and distribution.

Finding Right Location

If you think finding the right location that does not hamper team productivity for warehouse expansion is an easy task, then you need to re-visit your thought process!

A right location with every factor that serves the purpose is equivalent to boiling the ocean, thus businesses look for new construction. 

But wait, this is not that easy, as it sounds.

The search process involves intrinsic details to attain valuable insights while matching the details of requirements.

Although, building a new construction, retailers have the advantage of designing a warehouse that meets their specific needs and requirements. 

But it is an expensive affair that is hard to be taken care of by most of the retailers out there.

Alternative Solution

The simplest, most affordable alternative to warehouse expansion remains outsourcing to a 3PL. 

The ever-problematic issues of scouting properties, comparing different designs, matching with budget can be avoided at the large with this.

It brings peace of mind and saves time and resources with a prime objective of enabling businesses to focus on their core competencies. 

In addition, partnering with a reliable 3PL can provide access to their existing infrastructure, technology, and expertise in logistics management.

Future Trends in Multi-Warehouse Inventory Management

No business can ever be successful, if it fails to march a pace with emerging technologies!

The future is going to be defined largely by the technologies, and ecommerce is no exception to it. It will be a medley of trends, analytics processed by emerging technologies.

The relentless growth in data analytics and ML algorithms has empowered businesses to glean insights into colossal data volunet to identify patterns and optimize them further to boost operation models.

Below we have outlined a few trends that will continue reshaping warehouse management with extreme excellence.

Real-time insights on customer preference

Businesses work closely on the demand of users.

Thus, knowing what customers are buying and appreciating most, or what they’d like to see more of, can also be a first step toward efficiently stocking multi-warehouse inventory. 

When businesses take a deep dive into preferences and trends expected by consumers, they set a benchmark for new success parameters wherein they offer the right products to the right customers at the right time.

This type of analytical task requires implementing AI technology, where it boosts data analytics with bots.

It curates a set of defined analytics to businesses to decide on product demand to meet consumers’ expectations, while ramp-up and ramp-down the underperforming and high-performing products.

It is no wonder, but such an available set of information enables businesses to make informed decisions powered by data intelligence and keep abreast with the latest trends in warehouse inventory management solutions.

Predictive Analytics

Analytics are ruling the business world, letting businesses make a smart move to expand and make pace with the emerging technology ecosystem.

This set of analytics impact warehouse management largely helping them to attain right information and make  future-proof decision.

Also, ML- DL powered analytics help in identifying trends, patterns, and correlations in the market to make accurate predictions and informed business strategies.

AI for Warehouse Management

Artificial Intelligence is all about fuelling innovation leading to an agile working structure in business operations. 

From product tracking to shipping route planning, to warehouse equipment maintenance, AI provides valuable information that businesses need to work efficiently and effectively.

This emerging tech trend has the capability to assess and process data from different sources and compile an algorithm that results in optimized decision-making. 

IoT integration for supply chain management

IoT has become a household name since smart city concept has come into an existence.

Today, this technology is seen impacting objects around leading to quality of life. It has successfully integrated within various sectors and the supply chain is no exception to it.

Yes, you heard it all correct and strong!

By leveraging IoT, retailers can mitigate the inefficiencies of the supply chain and improve the bottom line. Now, businesses can use it to automate the stock, store, pack and ship stages of products without being worried for any anomaly to be experienced.

With IoT devices and sensors strategically placed throughout the supply chain, companies gain real-time visibility into their inventory levels, delivery schedules, and overall logistics. 

It offers a granular dataset that improves operations, cuts down cost, and improve customer satisfaction.

Hidden Brains- Redefining Inventory Management

At Hidden Brains, our commitment to anticipating rapid growth has led us to develop an advanced inventory management system that is primed for scalability. 

We don’t depend on old-age methods to develop new software solutions, rather our approach is to find a new and improved technology landscape that aligns with business-set objectives and accommodates the needs of growing businesses.

Our team has redefined inventory management with a strategic WMS solution, crafted with emerging technologies to address e-commerce inventory management challenges with elan.

We know businesses are dealing with loads of pressure to sustain and thrive in today’s competitive landscape. To give a voice to customers’ needs with improved business strategies is a solution to make a difference. The key lies in leveraging technology, adopting lean principles, and fostering collaboration across the supply chain. – Mr. Ram Chhawchharia, CTO, Hidden Brains

We empower businesses to stay ahead in a competitive market landscape by effectively managing their inventory and effortlessly adapting to changing customer demands.

Final Thoughts

Companies spend an estimated $350 billion a year on warehousing globally!

This number grows each year as pick sizes shrink and costs balloon, raising pressure not just on margins but also on service levels. 

With this increasing financial burden necessitates a closer examination of warehouse management practices and the implementation of effective strategies to optimize operations. 

Ecommerce has always been a reason for businesses to think out of the box, and with the onset of the pandemic, gave a different twist to it. 

Now, it has redefined the way consumers interact with products and buy them with a click on their phones.

However, this sudden rise has induced a spike in speedy and efficient order fulfillment, putting retailers on an edge to stay on their toes 24*7.

With the proliferation of SKUs, or stock-keeping units, companies are challenged with managing and delivering a diverse range of products quickly and accurately. 

In order to meet customer expectations and create a delightful shopping experience, Hidden Brains is investing in technologies and strategies warehouse inventory management solutions for super-fast supply chain fulfillment.

Call us today to redefine your wms to another level, streamline your processes, reduce errors, and improve overall productivity.

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Albert Smith

Albert Smith, Marketing Manager at Hidden Brains, drives brand growth with innovative strategies in web, mobile app, and software development.