If a fast-paced DC world of conveyors, stretch wrappers, storage mezzanines, and modular offices, it’s sometimes hard to keep track of inventory and match what’s available with the nearest warehouse location. That’s why many effective warehouse management systems offer virtual inventory applications. Here is how the process works and the many benefits it has to offer.
A Virtual Inventory Example
A customer in Orlando places an online order with a company. The main facility and warehouse are in Kansas City. This gives the business a central location for more efficient shipping. They also have warehouses in Los Angeles, New York, and Jacksonville, FL. However, they own retail outlets in many other cities, including Orlando.
The best warehouse management systems (WMS) combine all these inventories into one large virtual inventory. Since the Orlando retail outlet has the product, they can ship it to the customer within one business day. This gives the customer fast and efficient service, and the company saves on shipping and handling costs. For even greater efficiency, the system lets the customer pick up an item in the Orlando store so that he can have it the same day and there’s no need for shipping costs. This is just one example, of how virtual inventory methods can work.
Benefits of Virtual Inventory
Efficient shipping – by giving the customer the closest materials, warehouse management systems offering virtual inventories, lower shipping costs.
Time – instead of taking a week or longer for delivery, customers can get their orders as fast as one day’s time.
Fewer frustrations – you’ll have fewer problems with “out of stock” items because you can draw from a vast inventory.
The Value of Professional Help
For best results, talk to warehouse management systems consultants. They can help with complete distribution center analysis, including storage media and virtual inventory applications.
