Optimizing Inventory Management with FMi Logistics’ Warehouse Services
Created on: August 19th, 2024 Categories:Warehousing
Thinking about reinventing your inventory management system for the better?
Maybe all it needs is a touch of FMi Logistics’ expertise.
As part of our trusted warehouse services, you’ll find that our inventory management solutions continue to set the bar high—offering nothing less than accurate inventory tracking, reporting, and replenishment.
Discover all the ways streamlined inventory management services benefit your business, what the process of an organized inventory management system typically looks like, and why FMi Logistics is Canada’s top choice for reliable warehousing and distribution solutions.
Table of Contents: Optimizing Inventory Management with FMi Logistics’ Warehouse Services
FMi Logistics’ Other Warehousing and Distribution Services
Reinvent Your Business For The Better With FMi Logistics
What is Inventory Management?
Any business that handles physical goods should walk hand in hand with an optimized inventory management system—and this rings true whether you’re a small business or a large corporation.
Inventory management services involve the monitoring, control, and optimization of inventory levels to ensure smooth, accurate, and efficient operations—boosting business success and profitability. These services typically include a range of tasks such as tracking inventory levels, forecasting demand, replenishing stock, managing storage locations, and analyzing inventory data to make informed decisions.
And when it comes to inventory management that propels you faster to success, FMi Logistics’ services take the lead. Learn more about our advanced solutions.
Important Statistics on Inventory Management
Has your business ever unintentionally sold a product that was actually unavailable in its inventory? Did this lead to delayed shipments and somewhat of an angry customer? Well, you’re not alone. In fact, approximately 34% of businesses have encountered situations where they have unintentionally sold a product that wasn’t in stock. This situation could likely have been avoided if they had a more accurate inventory management system in place.
Looking to reduce your overall inventory costs by a whopping 10%? Then, you’ll want to keep a close eye on your stockout and overstocks. Statistics say that reducing these two elements can lower inventory costs by 10%.
Inventory management continues to be a game-changer and a life save for various businesses out there that handle physical goods. Its popularity and efficiency are evident in the immense growth of the inventory management software market—which is projected to reach an estimated value of USD 3.82 billion and grow at a CAGR of 6.12% in the forecast period of 2021 to 2028.
What Are The Benefits of Inventory Management?
Every item in your inventory is valuable. As such, wouldn’t you want to have a birds-eye view of it all? Inventory management plays a crucial role in optimizing warehouse services by ensuring that the right products are in the right place at the right time.
And along with this peace of mind and clear overview, you’ll find that there are a ton of other incredible benefits that will make you think “Why am I only thinking of leveraging inventory management now?”
Here are some ways in which inventory management can optimize warehouse services:
1. Real-Time Tracking
Advanced inventory management systems provide real-time data on stock levels, allowing for precise tracking of products as they move through the warehouse. You’ll know where everything is exactly in a few seconds and in just a few taps.
2. Demand Forecasting
What if you could forecast product demands using accurate data? With inventory management services, you can do just that.
Demand forecasting involves analyzing historical sales data, market trends, seasonality, and other factors to anticipate future sales volumes.
3. Minimize Stockouts and Overstock
Remember how we said avoiding stockouts (running out of products) and overstocks (holding excess inventory) helps reduce costs? Well, you can count on inventory management solutions to prevent these situations.
By accurately forecasting demand and maintaining optimal inventory levels, this ensures that warehouses are not overcrowded with unnecessary items or lacking essential products, thereby optimizing space utilization.
4. Improve Order Fulfillment
Here’s a fact: The faster that customers can receive their orders accurately, the happier they’ll be.
Inventory management solutions streamline order processing and fulfillment by providing real-time visibility into stock levels. This can quickly guide warehouse staff to pick, pack, and ship orders quickly and accurately, reducing lead times & likelihood of errors and improving customer satisfaction.
5. Reduce Carrying Costs (H3)
Carrying costs, such as storage, handling, and insurance expenses, can all quickly add up if you don’t have streamlined inventory management services. With better inventory control, warehouses can minimize losses due to product obsolescence, spoilage, or damage—ultimately lowering holding costs associated with excessive inventory levels.
6. Enhance Inventory Accuracy
Are you 100% confident that your current inventory management system is actually 100% accurate?
Inventory management systems from trusted providers utilize barcode scanning, RFID technology, and other advanced tools to track inventory movement accurately. This minimizes errors and discrepancies that can disrupt warehouse operations.
7. Optimize Replenishment Processes
Inventory management solutions are here to streamline the replenishment process as well.
Count on them to automate replenishment processes by generating purchase orders, setting reorder points, and alerting staff when inventory levels fall below a certain threshold. This helps warehouse managers optimize replenishment tasks and prevent stockouts without overordering.
8. Enable Data-Driven Decisions
Inventory management systems provide valuable insights into inventory trends, demand patterns, and supplier performance. By analyzing this data, warehouse managers can make informed decisions regarding inventory optimization, pricing strategies, and order fulfillment processes.
9. Space Optimization
By organizing inventory and maintaining optimal levels, your business can maximize the use of warehouse space, reducing overhead costs.
At the same time, inventory management solutions can analyze sales patterns and picking data to determine the best locations for items. This means fewer steps for your staff and expedited picking processes.
10. Improved Customer Relationships
When your inventory data is accurate and reliable, this helps in keeping promises to customers regarding product availability and delivery times—ultimately boosting your brand and maintaining positive customer relationships.
11. Regulatory Compliance and Safety
Inventory management solutions do more than just streamline your business processes—they’re here to ensure you adhere to industry-specific regulations, such as FIFO (first-in, first-out) or LIFO (last-in, first-out) and hazardous material handling requirements.
Additionally, properly managed inventory reduces clutter and potential hazards, promoting a safer work environment for warehouse employees. #SafetyFirst
How Does Inventory Management Work?
Now that you know the benefits of inventory management solutions and why it’s one of the most crucial warehouse services, let’s take a deep dive into how this service typically works:
1. Setting Up an Inventory System (H3)
The first step in this process involves choosing the appropriate method and technology to keep track of stock levels. Options range from simple spreadsheet-based systems to complex inventory management software that integrates with other business systems like point of sale (POS), enterprise resource planning (ERP), and supply chain management platforms.
But when you opt for inventory management solutions at FMi Logistics, you don’t have to worry about setting up the right system. As one of the most reliable providers, we leverage the most advanced software in the industry—eliminating the need for you to scour for the best systems out there by yourself.
2. Inventory Tracking
Next, it’s time to set the stage for inventory tracking. This typically involves various methods, including:
SKU (Stock Keeping Unit): A unique code assigned to each item to track inventory.
Barcodes: Scannable tags that track products through barcode readers.
RFID (Radio-Frequency Identification): Tags that use radio waves to transmit the identity (in the form of a unique serial number) of an object wirelessly.
IoT Sensors: Smart sensors that can provide real-time data on inventory levels and conditions.
3. Stock Management
Once a method for reliable inventory tracking is set, there are various stock management techniques that can leveraged. This includes:
Just-in-Time (JIT): Inventory arrives as it is needed, minimizing holding costs.
Economic Order Quantity (EOQ): A formula used to determine the optimal order quantity that minimizes total inventory costs.
ABC Analysis: A method that organizes inventory into three categories (A, B, C) based on importance and value, with A being the most valuable and C being the least.
First-In, First-Out (FIFO): The first items put into the inventory are the first ones to be sold or used.
Last-In, First-Out (LIFO): The most recent items added to the inventory are the first to be used or sold.
4. Re-ordering
Based on inventory levels and forecasts, an inventory management system can generate purchase orders automatically when stocks reach a certain threshold or a set re-order point.
5. Inventory Reporting
Inventory management solutions are smarter than you think—they’re also capable of providing various reports to assist in decision-making, such as inventory turnover rates, days sales in inventory, and gross margin return on inventory.
6. Audit and Compliance
While inventory management services are almost entirely digital-driven, there’s still immense importance in double-checking the manual way. It’s essential to ensure that the physical count matches the recorded amounts in digital systems. That’s where inventory audits come into the picture. This can be done through:
Physical Inventory: A physical count of all inventory items, typically conducted annually.
Cycle Counting: A rotating schedule of audits checking a subset of inventory in different areas of the warehouse throughout the year, which is typically a less overwhelming process.
7. Analysis and Forecasting
Another crucial step is accurately analyzing data to forecast demand and plan for future inventory needs. By identifying trends and patterns, it helps to make more informed purchasing and stock-level decisions.
In today’s competitive industry and fast-paced market, you don’t want to miss out on the opportunity to streamline every business process that could potentially propel your business to new heights. And effective inventory management is one of the biggest game-changers that optimize warehouse services and ensure operational efficiency.
At FMi Logistics, we understand that managing your inventory can be a challenging and time-consuming process—and so we’re here to do the heavy lifting for you through our reliable warehouse services.
Because every business is unique, we’re dedicated to providing inventory management services that are custom-fit to business needs. From leveraging the latest technology to adhering to industry best practices, expect nothing less than accurate inventory tracking, reporting, and replenishment from our team.
FMi Logistics’ Other Warehousing and Distribution Services
Looking for more than just inventory management solutions?
At FMi Logistics, we also offer strategic, customizable warehouse and distribution services that bring you closer to your business goals.
Well-known as Canada’s most trusted logistics partner, our years of experience in the supply chain and logistics industry make us a top choice for businesses across the country.
FMI Logistics’ Warehousing Services
Category
Services Offered
Inventory Management
– Inventory control- Replenishment- Forecasting and demand planning
Storage Solutions
– Short, temporary, and long-term storage (whether it’s small goods or large machinery) – Indoor and seasonal storage- Overflow storage
Order Processing
– Order processing- Order fulfillment- Pick and pack- Kitting
Quality Assurance
– Quality control- Inspection and compliance checks
Our team, comprising seasoned professionals, is dedicated to offering a range of services including freight management, warehousing, distribution, and supply chain management. We specialize in creating customized solutions that meet the unique needs of our clients, ensuring their goods are transported safely, efficiently, and sustainably. At FMi Logistics, we are committed to leveraging the latest technology and industry best practices to deliver excellence in every aspect of our services. Our insights and updates in the logistics field are driven by our passion for excellence and our commitment to helping businesses succeed in a dynamic global market.
