Even if you have advanced cloud-based inventory management software in place, it’s still a good idea to build multiple warehouses for your products as your business expands.
Many companies realize that one warehouse isn’t enough to fulfill the demand, the online shopping world grows, and the demand for fast delivery increases. At that place, multi-warehouse inventory systems come in and play an important role.
What Is Multi-Warehouse Management for Businesses?
A multi-warehouse inventory system generally becomes necessary when your brand needs more space to store inventory, you want to cover a wider geographical area or find a way to get your products to customers faster.
This system essentially refers to an inventory management solution that uses two or more warehouses to store and track inventory.
Types of Businesses Benefits from Multi-Warehouse Inventory Systems?
- eCommerce businesses
- Businesses carrying heavy items
- Businesses carrying perishable items
- Businesses covering a wide geographical territory
Here are some benefits of the Multi-Warehouse Inventory.
- Spread risk in case of emergencies – Keeping all your inventory in one place is risky. What if in case of natural calamities or a disaster like (floods, fire, or an earthquake)
By spread out your inventory in multi-locations ensures that you’ll have enough extra stock to keep your business going during a disaster.
- Drive down shipping costs – Less shipping distance is money in your pocket and money in your customer’s pocket. With products spread out in different distribution centers, you’ll pay less to ship individual orders.
Imagine offering discounts on the shipping because you’ve saved through a hub inventory system. Your customers will love you for it! And it gives you a competitive advantage.
- Get your orders shipped to customers faster – In today’s world, customers expect quick shipping. Spreading your inventory over several locations means quicker shipping turnaround for your customers. Keep this in mind when choosing warehouse locations.
The more strategic you are when choosing warehouse locations, the better you’ll meet your local customer’s needs.
- Increase Efficiency – It’s true that it’s more expensive to run more than one warehouse. But it can actually improve your efficiency. The key is to produce the volume in sales necessary to make up for the additional operating expenses.
There are many reasons a business should opt for a multi-warehouse inventory system, but most tie directly to business or brand expansion. You can use multi-warehouse management software, such as cloud-based multi-warehouse inventory management technology from GOIS (Goods Order Inventory System), to easily manage these warehouses.