The whole concept of an order-to-cash solution is to enable the wholesale distribution enterprise. This concept allows for planning that enables better forecasting, optimizes inventory and increases your ability to sense and anticipate movements in the marketplace. By anticipating, you are able to respond more quickly to both supply variations with long lead times and variability in your supply, and also to variations in demand. So, if you can better plan and forecast, then you have a better shot at optimizing your procurement process, which will ultimately enable you to reduce your cost of goods sold and improve your chargeback management.
The most important factor that will enable you to better plan and forecast is to get a hold of your inventory planning solutions. Long gone are the days of manual processes, trying to maintain multiple spreadsheets while running back and forth to the warehouse to check what’s in stock. A specialized system will allow you to input your planning specifications, and relevant inventory-related data will be transferred in to be analyzed. By automating your planning, you are able to not only able to view what’s in house with a single click, but can also be provided with useful information for future inventory planning with recommendations and budget information.
What is boils down to is, if I can have a conversation with my supplier that allows them to better understand what my demand on them is, certainly we can have a smoother supply chain engagement when my inventory planning is fluid. Since your new warehousing is focused on standardization and automation, your result will drive higher productivity and lower operating expenses. When you start to better organize your warehouse, upgrade your inventory management processes, and carefully monitor and measure people’s activities and their motion and their travel throughout that warehouse, you can start to squeeze as much productivity out of that as you can. Simply put – you’re getting more done with less.