Use multi-warehouse functionality for effective stock management

In the modern retail landscape, selling across multiple channels — online, in-store and through third-party marketplaces — is essential for maximising reach and revenue. However, the complexity of managing inventory across these channels can be challenging. This is where the multi-warehouse functionality of an Enterprise Resource Planning (ERP) system becomes invaluable.

Benefits of multi-warehouse functionality

• Centralised inventory management: By integrating your sales channels to your ERP (or accounting system), you can monitor stock levels across multiple warehouses in real-time. This centralised view enables you to allocate inventory efficiently, ensuring that each channel has the right amount of stock to meet demand without overloading any single location.
• Improved order fulfillment: Integrated sales channels allow you to automatically route orders to the most appropriate warehouse in your ERP. This not only reduces shipping times but can also lower logistics costs for enhanced customer satisfaction.
• Optimised stock allocation: Multi-warehouse functionality enables dynamic stock allocation based on real-time data. During peak sales periods, for instance, you can prioritise stock for online channels where demand might be higher, while ensuring that physical stores remain adequately stocked. If your points of sale (both online and in your physical store) are all synced with your ERP, then you can present the same stock for sale on all of them with minimal risk of overselling.
• Enhanced decision-making: With a unified view of inventory and sales data, your ERP provides valuable insights into stock performance across all channels. You can identify trends, such as regional demand variations, and adjust your inventory strategies accordingly, leading to more informed decision-making.
• Cost efficiency: Managing inventory across multiple warehouses helps reduce holding costs by maintaining optimal stock levels at each location. Additionally, by fulfilling orders from the nearest warehouse, you can minimise shipping costs and delivery times.

Implementing multi-warehouse functionality

It’s always best to discuss system changes with your ERP consultants, but here are some high-level steps for effective implementation of multi-warehouse functionality:

• Centralise inventory data: Ensure all sales channels are integrated with your ERP system, providing a unified view of inventory. This is where Stock2Shop can help.
• Configure order routing rules: Set up your ERP to automatically route orders to the appropriate warehouse based on criteria such as proximity, stock availability, and cost.
• Real-time inventory tracking: Implement real-time tracking to keep inventory data accurate and up-to-date, preventing discrepancies and ensuring efficient order fulfillment.
• Leverage analytics: Use your ERP’s analytics tools to monitor warehouse performance, identify trends and optimise stock allocation across channels.
• Staff training: Train your team to effectively use the ERP’s multi-warehouse functionality, ensuring smooth operations and better customer experiences.

The Importance of sales channel integration

Integrating your sales channels with your ERP’s multi-warehouse functionality is crucial for maintaining accurate stock levels and ensuring efficient order fulfillment. When all sales channels feed into a centralised system, you gain real-time visibility into inventory across all warehouses. This integration allows you to synchronise stock levels, track orders and manage inventory from a single platform, reducing the risk of stockouts, overstocking and order delays.

Contact Stock2Shop to find out how you can connect your ecommerce sales channels to better leverage the multi-warehousing functionality within your ERP.