Stocks are money, money is blocked. Therefore, some of the most important tasks in both production and distribution are to reduce stock levels and at the same time avoid out-of-stock situations. A fine line and a fairly difficult balance to maintain if there is no continuous tracking and optimization process implemented.
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In retail, due to the increasing and more complex flow of goods generated by e-commerce and the order processing time that gets shorter and shorter (from order to delivery), the logistics costs of warehouses are rising. Throughout the supply chain, the warehouse faces the greatest cost-related challenges. Why? Because the number of orders is increasing, the delivery methods have become more complex, and the warehouse is also handling B2B and B2C orders, each with its own specificity. This requires great flexibility, making planning work more difficult because of orders, which must be packaged and shipped in the same way, which means that it is very difficult, if not impossible, to make an advance planning.