Need For Distribution Management In Business

Distribution management is a wide-reaching term that encompasses the management of the events from the starting point of the distribution process, right up to their final delivery to the required destination. It can also be defined as the management of events from the point of production to the point of sale. Every person involved in the supply chain has an obligation to complete the process assigned to him, and since each process is interconnected to the other, one step going wrong could affect the entire chain of distribution.

By investing in a reliable distribution management system, a business owner can benefit with a higher ROI stemming from greater customer satisfaction, and hence increased customer loyalty. You might have the best products and a high demand for them, but if you do not have the resources to deliver them at the right destination, within the stipulated time, and in excellent condition, they are of no use to boost your revenues. A distribution management system ensures that all these aspects of distribution are taken care of, hence streamlining your business processes. This has a direct impact on your brand, giving it a stamp of reliability and integrity, hence making repeat orders flood in.

The role of distribution management does not simply end at delivering products to customers in time and in perfect condition. It also plays an important role in determining how far you can expand your business. For instance, say you own a cake shop in Birmingham, Alabama, and you sell the best cakes in town. With a reliable distribution management service in place, you can build an online presence for your business, and provide shipping for customized cakes across Memphis and Boston as well. Before you know it, you will be a household name miles away from where your brick-and-mortar business is sold.

With the special packaging and premium shipping required for most businesses, distribution management is the key to ensuring that your strategies to improve the visibility of your brand actually work. Depending on the industry that you are dealing in, distribution management can have a different definition for your business. For instance, while selling cupcakes, taking customized orders and streamlining deliveries is what you need to focus on; but in a business of HVAC installation and maintenance, the meaning of distribution can extend to selling your instruction, or maybe licenses for your franchise. It’s all about being exploratory and innovative!

McLane Logistics Technology provides a very reliable Distribution Management Software at a very affordable price. For more details contact them at 4001 Central Pointe Parkway, Temple, TX 76504 or call at 1-800-989-7568.

Key Processes Of Transportation Management

Transportation management is a key element of logistics management, the key focus of which is on revenue generation and customer satisfaction. The three key goals of any transportation management strategy are to reduce cost, minimize time, and increase profit. Even though transportation management is a highly elaborated part of the supply chain, it can be better understood by dividing it into the following key processes that constitute it- 

• Generating a prospective report- The first step that needs to be undertaken in the process of transportation management is planning major aspects such as transport costs, routes to be followed, number of stops on each route, vehicle load, carrier selection, service quality, lead time, etc. You can make use of a transport management system to deduce the cost that shall be incurred by adopting different strategies in terms of these aspects. At the end of this step, you should generate a report of the final prospective schemes to be followed, and the cost that is expected to be involved in the process. 
• Up-to-the-minute customer communication- A key feature of an efficient transport management system is the ability to track on-road merchandise within seconds. If a customer wishes to know the status of his delivery, being able to provide an accurate answer without wasting any time can give you a significant competitive advantage. Making use of cutting-edge GPS navigation systems to track vehicles makes this a fully automated process. In addition to this, customer communication also includes sending alerts of transport delays, and viewing and acting upon customer feedback. 
• Detailed post-implementation analysis- Undertaking a follow up of the transportation strategies adopted by your business is just as important as doing the initial groundwork is. Once you have put your initial plan to action, you must generate a detailed report of how the process actually worked. Was everything executed as per the plan, or did any unexpected issues arise in the field? Looking into these details can help you to further tweak your transport management strategies, finally arriving at a dynamic plan that optimizes cost, time, and efficiency. 

With transportation being one of the most essential parts of logistics, managing your company’s transportation services efficiently will not just improve customer satisfaction, but will also significantly cut down on the cost incurred during transportation. The money thus saved can then be invested in other revenue-generating areas of your business for a higher ROI. 

McLane Logistics Technology provides reliable and customized transportation management software and transportation management systems to give your business an edge over competition. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.

Warehouse Receiving And Put-Away Process

Warehouse receiving and put-away refers to the processes that take place right from the receipt of the products in the warehouse to their final storage or usage. Effectively carrying out these processes plays an important role in maintaining the accuracy of the inventory. Not only does it improves control in the supply chain, but also helps in timely fulfillment of customer orders. The warehouse management system streamlines the process of inventory control, right from the point of warehouse receipt to the put-away, hence saving on both time and resources. Since such a system is web-based, it ensures accuracy in the process by matching orders with receipts.

To ensure the effective operation of this process, warehouse staff must be well-trained regarding the put-away process. They should be able to choose the right location for each product, as well as execute order-picking in time. The warehouse management system can be used to automatically allocate a location in the inventory for put-away, as well as update inventory records in real time each time a purchase is made. Along with this, it also makes it possible to view receipts in a single click by applying filters for customization.

Another essential feature in a warehouse management system is the provision to receive unanticipated orders. This is made possible either with the help of ERP (Enterprise Resource Planning), or manually. Not only does this enable immediate updating of stock levels in case of blind receiving or damage processing, but it also helps in easily dropping orders when required. Some warehouse management systems make use of advanced product-identification technologies like case tags and wireless devices to collect important information during the receiving process.

It is the role of warehouse management to choose the best put-away route to save on travelling time. Features like fast shipping and cross-dock locations make the put-away process more efficient. While most warehouse management systems choose the most-suitable location for each product during the put-away process, by taking into account factors like velocity and best fit, there is usually provision for manually overriding the suggested location, as per the discretion of the warehouse staff. All through the process, fully automated material handling systems like customized conveyor systems and automated guided vehicle systems should be used. Both warehouse receiving and put-away significantly affect the warehouse efficiency, making them critical aspects of warehouse management.

For customized warehouse management software form your businesses, visit McLane Logistics Technology at 4001 Central Ponte, Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Boost Service And Reduce Costs With Inventory Management

With an effectively managed inventory in place, business owners can experience a significant boost in their enterprise, both in the terms of efficiency as well as productivity. Efficient management and control of inventory practices results in a two-thronged benefit, with there being clearer visibility as well as better cost-efficiency and customer fulfillment. As far as cost-efficiency is concerned, inventory management works in two ways- firstly, it helps in reducing operating costs, and secondly, it increases repeat orders due to there being more satisfied customers.

With a well-managed inventory, business owners can steer away from both extremes of an inventory- under-stocking and over-stocking. Inventory managers are increasingly becoming aware of the need to increase inventory turnover ratio, and to clear old inventory periodically. These simple strategies are an efficient way of keeping the working capital flowing, and determining which items are worth investing in, when replenishing the inventory. On the other hand, having what your customers are looking for most of the times, is a sure-shot way to increase customer loyalty and satisfaction.

While it was previously sufficient to monitor the physical movement of materials in the inventory and maintain inventory balances, the definition of inventory management has changed for modern businesses. It now includes additional tasks like devising replenishment techniques, analyzing the projected inventory in relation to the current one, setting targets over specified term periods, and making necessary changes in the execution framework. These efforts help in creating a competitive edge in the market for the products being sold, hence contributing to enhanced productivity of the business.

Most businesses are now adopting computer-based inventory management systems, which can be integrated into the pre-existing system being used by the business. Such a system makes inventory data easily accessible, enabling employees to look into details of the inventory like reorder statuses, and the movement of various products, in just a single click. In order to make the most of inventory management, business owners should bear the following tips in mind-

• An accurate entry must be made for each stock receipt.
• The business should devise a replenishment strategy for each item in the inventory.
• Excess inventory and on-going dead stock should be efficiently handled with pre-decided strategies.
• Businesses should invest in a stock-analysis tool for instantly available information regarding the inventory.

A strong inventory management system is definitely crucial to the success of a business, and is critical to saving cost as well as boosting service.

McLane Logistics Technology provides reliable and customized inventory management software to give your business a competitive edge. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.

Create Cash Flow With Your Old Inventory

Two of the biggest dreads of any business owner are too little inventory and too much inventory. As bad as both these situations can be for your business, too much inventory is definitely the bigger dragon to look out for. By excessive inventory we do not mean an extra bulk of fast-moving merchandise that is likely to sell in a couple of months, but what we are talking about is those slow-moving products that have been lying on your top shelves for months, and refuse to budge.

Old inventory spells disaster for your business for two reasons- the first one is that it keeps your cash flow strapped, hence reducing your productivity; and the second is that it requires you to spend more money on its maintenance and the probable risks involved. To cut a long story short, the bottom line is that old inventory is best gotten rid of. When it comes to generating cash flow from an old inventory, a common mistake made by most business owners is not being willing to offer a significant discount on the products.

However, when you think of it logically, this is the simplest and most efficient way of clearing your inventory.
The benefits that you get from putting your slow-moving products on sale are as follows-

• You convert a liability into cash, and you can use this cash on a more productive venture, like say investing on more fast-moving merchandise. 
• This is a great way to draw prospective customers to your business, and while they shop for the discounted items, chances are that they shall also add a few of your best selling products into their shopping carts. 

The only deterrent to this approach, from the business owner’s point of view, could be the perceived loss of offering a huge discount on any of his merchandise. To understand how this is not actually a loss, consider this simple example- a product costs you $100, and you sell it for $200. In order to clear your inventory, you sell it at a 50% discount. If asked how much profit they generated from this deal, most business owners would say they ended up with zero. However, when you think of it, what you are getting is actually a $100 gain, since the cash and space that you have got from a product that was giving you zero cash, can now be used for a more profitable item.

McLane Logistics Technology provides customized Inventory Management Software system for businesses to effectively manage their inventory functions. You can contact them at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.

Controlling Your Open-Stock Inventory

Inventory control, when well-organized, can be a streamlined process, in which all the records tally with each other, and the inventory manager can instantly give an account of any random product, if required. However, when we are talking of open-stock inventory, the tables turn, and it is no longer easy to maintain accurate records of consumed products versus available products. An open-stock inventory refers to an inventory that deals with a bulk of products that are usually difficult to count, and are mostly inexpensive, yet are part of product development process.

The products in an open-stock inventory could be anything from a nails to office stationery. These products have been a nightmare for inventory managers, as it is virtually impossible to determine reorder quantities for them, and maintain stock levels with the accuracy that is normally common place in an inventory. The flow of these products is determined by the frequency of their need by the user, and even though they might be seemingly unimportant individually, their shortage can halt the entire production.

Ideally, the controlling of an open-stock inventory should include a way to be able to record every material disbursement that takes place from the inventory, in order to be able to predict when the need for a fresh supply arises. However, considering how these materials are used in bulk and are individually of little value, it is nearly impossible to impose strict regulations to make sure that each of these materials that leave the store is accounted for. This would mean asking customers to record the accurate item number when buying nails in bulk, or asking workers to maintain a record of every nut and bolt that they use.

Since none of this is feasible, the most practical way of controlling an open-stock inventory, is to devise a way to track the rate at which the open stock needs to be replenished. This means dividing the supplies into on-hand quantity and container quantity, with the former being the amount of material available in bulk storage, and the latter being the open-stock material available in open containers for usage.

Each time a box of material is moved from bulk storage to open-stock, it should be accounted for, and hence the future demand for each item can be forecasted. The usage history for each product, which is the number of containers that were dispatched from bulk storage during a particular period, should be monitored. Also, any unexpected increases in replenishment should be looked into, to detect pilferage or any other problem in the inventory.

For customized inventory management systems for your business or to know more about stock inventory management, visit McLane Logistics Technology at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.

Why Is Inventory Turnover Important?

As a business owner, the biggest investment that you are probably going to make is that of your inventory. Inventory management plays a key role in streamlining the supply chain, as well as in gauging how successful your business is. One of the most efficient barometers of your business’ success is your inventory turnover. To put it in technical terms, the inventory turnover is the sales generated from goods over the past year, divided by the cost incurred in replenishing the inventory.

In simple words, the inventory turnover is the number of times your inventory was completely emptied, and re-filled. So how is this important for your business? Looking at it plainly and simply, it is evident that a higher turnover is what we are looking for in any business. A higher turnover means that the inventory is flowing, and customers are actually buying what you are stocking. On the flipside, a low turnover is a reason to worry, since it means that you have an overstocked, slow-moving inventory.

The concept of inventory turnover can be better understood with this simple example- Business owner A invested $15000 at the beginning of the year on his inventory. By the end of the year, he had generated sales worth $20000, amounting to a gross profit of $5000. On the other hand, business owner B invested $5000 at three different intervals over the entire year, refilling his inventory each time it got emptied, and also generated a gross profit of $5000 by the year’s end.

The inventory turnover for A is 1, while that for B is 3. Even though their profit might be the same, but B’s business is considered to be more successful, since for the first period of the year, when he had invested $5000, he still had $10000 in hand, which he could use for other profit-generating purposes. On the other hand, A had his entire capital amount tied up in inventory, which means that he ultimately generated lower profit than B.

Apart from this basic advantage of having a high inventory turnover, the other essential application of inventory turnover for any business is that it helps in identifying the slower moving products in an inventory. Inventory tracking software or spreadsheets can be used for a better understanding of your inventory, and hence in the reevaluation of business plans.

McLane Logistics Technology provides customized Inventory Management Software system for businesses to effectively manage their inventory functions. For more information visit them at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.