Author: Daniel Zimmerman Sep 05, 2023 3 Min READ

Mastering Distributed Inventory & Inventory Transfers

3 Min READ
Mastering Distributed Inventory & Inventory Transfers


Distributed Inventory Between Regions: Mastering Transfers with Warehouse and Inventory Management Software

The old saying, “Don’t put all your eggs in one basket,” is well-known for advocating investors to hedge risks when possible, to prevent breakage of the entire supply of eggs. But there is another logistical lesson to be gleaned from this saying as well. Just as an investor mitigates risks by allocating resources across various assets, businesses today need to strategically diversify their inventory across different locations. This approach not only buffers them against unforeseen challenges but also optimizes the efficiency of their operations, ensuring that their products are accessible when and where they're needed the most.  

We all know that businesses are expanding their footprint across states and diverse markets. As a result, the distribution of inventory across multiple regions has become a norm, rather than an exception. But how do companies manage such vast inventories and ensure smooth transfers between regions? The answer lies in the advanced capabilities of warehouse and inventory management software. Let's dive into how this software streamlines the process.

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Understanding Distributed Inventory

Distributed inventory means storing products in multiple locations or warehouses, often spread across different regions or even countries. This strategy brings products closer to customers, resulting in faster shipping times and reduced costs. Now there are certainly some challenges associated with distributing your inventory across multiple warehouses, which include the list below:

Challenges of Distributed Inventory Management

  1. Multi-regional Regulatory Compliance: Different regions sometimes have varied regulations concerning product standards, taxes, and import-export procedures.
  2. Logistical Complexities: Managing transportation across various terrains, climates, and distances.
  3. Communication Gaps: Coordinating between multiple teams in different time zones can be challenging.

How Warehouse and Inventory Management Software Helps

Effective warehouse management systems (WMS) and inventory management systems (IMS) are the key to overcoming the challenges listed above and offer a myriad of benefits that streamline operations across multiple warehouses. At the heart of this is that WMS software can provide a unified view of inventory. This includes a centralized dashboard that provides a comprehensive overview of inventory levels from all warehouses, regardless of their geographical dispersion. This holistic visibility stands as a cornerstone for the next vital feature: Data-Driven Insights. By harnessing sales forecasts in tandem with current inventory metrics, these systems, especially when merged with Business Intelligence (BI), have the capability to autonomously generate transfer orders. This ensures that each location maintains optimal stock levels, enhancing overall operational efficiency.

Adding another layer of efficiency is the advanced tracking feature. Through the implementation of RFID tags and barcodes, these systems monitor every product's movement meticulously in real-time. This means stakeholders are consistently updated, knowing the exact position and status of their inventory during transfers. Integrated communication tools embedded within the software pave the way for seamless collaboration among teams, even if they're oceans apart. This ensures that potential impediments are identified and tackled promptly.

Lastly, these inventory systems truly shine with their third-party logistics (3PL) integration capability. A direct integration with 3PL providers means that outside 3PL warehouses are not an afterthought. Instead, based on the generated transfer orders, movement of inventory between different warehouses is automatically accounted for, living within the same source of truth- ensuring that goods move smoothly from one warehouse to another.

Process of Transferring Inventory Using the Software

To ensure that inventory is transferred smoothly, ensure the following steps have taken place:

  1. Demand Forecasting: Using IMS software analyzes sales data, predicting future demand in different regions.
  2. Transfer Initiation: Based on forecasted demand and current stock levels, the system generates a transfer order.
  3. Compliance Check: The software checks for regional compliance requirements and ensures that all necessary documentation is prepared.
  4. Pick, Pack, and Ship: Warehouse teams are notified of the transfer order. Using the software, they can efficiently pick the right products, pack them, and prepare them for shipment.
  5. Logistics Coordination: Transportation is coordinated either through integrated third-party providers or built-in logistics management tools.
  6. Real-time Tracking: As products move between regions, inventory tracking is measured in real time, ensuring transparency in the process.
  7. Receiving and Verification: Once the inventory reaches the destination warehouse, it is verified against the transfer order to ensure accuracy.
  8. Update Inventory Levels: After verification, the software automatically updates inventory levels across the system.

Mastering Distributed Inventory Conclusions

Distributed inventory management, while complex, is no longer a herculean task. With advanced warehouse and inventory management software, businesses can ensure that their products are in the right place at the right time. This not only reduces operational costs but also enhances customer satisfaction by ensuring timely deliveries. In the age of global business operations, leveraging such technology is no longer optional but essential.

Furthermore, this is no longer a feat that must be undertaken alone. With the right 3PL partnership, it can be simple to transfer and distribute inventory across multiple regions- widening the reach of a business and allowing them to fulfill orders in a more efficient manner.

If you’d like to learn more about the inventory management system that can expand your fulfillment footprint, request a demo here. If you’d like to learn more about the 3PLs in the market you’d like to expand into, look through our Fulfillment Marketplace here. 

Written By:
Daniel Zimmerman

Daniel is an experienced digital marketer, having formerly worked for some of the biggest digital marketing agencies in Southern California. Now tackling the logistics industry, he specializes in utilizing the right medium to find and show customers WMS solutions to pain points they face every day.

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