Reduce warehouse operating and inventory costs
Improved stock management is essential to reducing stock holding and better managing obsolete and damaged stock. Furthermore, the optimisation of stock flow around the warehouse can greatly reduce resource, and distribution costs.
The high costs of inventory and warehouse management are caused by operational challenges that include:
- Lack of stock visibility.
- Complex warehouse processes.
- Obsolete stock management.
- Excess stock.
Processes in the area of SAP Inventory Management address the recording and tracking of materials on a quantity and value basis. Introducing tighter Inventory and Warehouse Management controls provides the foundation of an optimised supply chain that can support and promote business agility and growth.
Business benefits achieved through the implementation of these processes include:
- Increased stock visibility: Increase customer satisfaction by enabling distribution channels to fulfil orders quicker and minimise the risk of adversely impacting customer retention.
- Reduced operating costs and increase efficiency: By having a clear and accurate view of inventory levels and warehouse activity, supply chain procedures can be used to streamline warehouse activities, reducing time-to-dispatch and optimising productivity levels.
- Reduced stock wastage: Deliver granular batch control, to better match inventory to customer demand, reducing out-of-stocks and stock wastage.
- Reduced stock holding: Improve cash flow and warehouse management costs through efficient stock rotation and the reduction in obsolete stock so manufacturers no longer incur costs for storing excess products or goods they can't sell.
Improving warehouse efficiency and reducing the cost of warehouse operations is not just about technological change. It's also about understanding how technical systems will map onto the introduction of processes and strategies that drive placement, picking and inventory processes within the warehouse. For example, movement of goods, searching for stock, display of inventory, or planning and performing a physical inventory.
Bluefin Solutions can:
- Review existing warehouse processes and strategies.
- Provide a recommendation of SAP ERP future strategies aligned to business requirements.
- Specify technical delivery of a new SAP WM system or the introduction of new strategies to an existing SAP WM system.
- Develop specifications for changes to a third-party SAP integrated warehouse solution.
- Provide a business case for the introduction of SAP Warehouse Management.
- Help define key KPIs for managing warehouse efficiency.
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