The right stock at the right location at the right time, delivering more profit with less stock

Date: 08-11-2017
Author: Alina Răfoi

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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.Companies that meet the challenges correctly have a huge competitive advantage and a margin booster.

Orders from online with fewer command lines and with lower value affect the store at the efficiency level. This raises expectations from the ERP and WMS system used in retail, from which it is hoped to optimize order distribution, pick picking and consolidation routes so as to reduce the time and cost of accomplishing each task in the warehouse.

Retailers have to calculate the optimum supply quantity for each product, taking into account all the costs associated with each transport, handling and storage task. Many suppliers come with promotional offers that supply managers are tempted to accept. Do not be fooled, however, and consider how quickly you can sell those stocks and if the promotional price offered by the vendor together with all associated costs does not actually make you lose money.

To keep costs at a low level, a minimalist mentality is needed throughout the supply chain, and the procurement department must evaluate each transport and each transaction and include it in the cost of the purchase.

IT solutions are an important factor for continuously optimizing the supply chain and warehouses. ERP and WMS systems are a real help in tracking logistics flows from supply requirements to delivering orders to customers.


Thanks to multi-channel sales, the warehouse is no longer just a storage space, but it has become a production unit where operations have become more complex and only a flexible and fast WMS system helps you become more competitive and to optimize the time for each transaction in the warehouse.


What solutions do we recommend?


SocrateERP manages all the processes of retail businesses, regardless of their sales channels: physical stores, online stores, external online trading platforms, etc. Integrated in the front office with e-Commerce, POS, HandHelds and electronic scales, SocrateERP helps you effectively manage your retail business.


FluxVision WMS is a key component in efficient warehouse management and inventory optimization. This solution optimizes all the operations that take place in the warehouse, from reception to delivery. FluxVision turns all warehouse operations into simple, intuitive and paperless operations, based on barcode reading.