Many ecommerce businesses start their journey of selling with a single warehouse to stock all their products. With a single warehouse it is easier to keep the accurate count of your inventory. When a business starts targeting the global audience, there arises the need of opening multiple warehouses at prospective locations.
If you are operating globally then single warehouse would:
- Increase your shipping cost
- Result in shipping delays
- Bad Customer experience
For example, if you have a warehouse in New York and you have a growing customer base in Los Angeles, the transport costs to deliver the products would increase, thus forcing you to keep the rate of the products high. But, if you have another warehouse on the location from where you receive maximum orders then your fulfillment costs will reduce thus making it a profitable affair.
Challenges of maintaining Multiple warehouses
Multiple warehouses create complex issues when it comes to inventory management. You require a streamlined system that will enable you to:
- distinguish between identical products stored in different locations
- choose the appropriate warehouse or location to receive supplies and
- fulfill the orders as per the supplies.
Inventory analysis : Understanding the supply and demand of every location is very important, as it may vary depending upon the change in trend, seasonal changes and location preferences. So, if every warehouse has different products as per the location, it becomes difficult to manage and track the products.
Maintaining Stock count: Stock counts and sales can easily fall out of sync, if you don’t have a streamlined approach to your inventory. There are chances of many people handling the products and so chances of human errors are also more which may lead to inaccurate inventory counts. This may also result in having zero knowledge about the out of stock products leading to inefficiency at the time of fulfillment resulting in lost revenues and bad customer experience.
Mixing up the processes: While maintaining multiple warehouses, there are chances that maintenance of processes of every warehouse is carried out in a different way (Like inflow, outflow and invoices). Improper processes lead to mixing up of orders and shipments between warehouses if you are using a centralized filing system.
Every warehouse tends to be at a distance with different employees handling each warehouse, resulting in communication issues. Missed messages may cause bottlenecks and errors because of the lack of face-to-face communication and discussion on streamlining the processes.
Managing shipping between warehouses:
When stock is low in a particular warehouse, the following questions arise:
- Should you ship it from another warehouse directly to customer?
- Will the fulfillment cost be more?
- Will it fulfill the customer order on-time?
This can be resolved only if you have full visibility of your stock across all locations.
Up-to-date Ecommerce store
Customers checking your product page are not interested from which warehouse the product is supplied, they would only check if it’s in stock, till when it will arrive and how much will it cost including the shipping. You need a system to keep the stock levels up-to date across all warehouses.
Multiple Warehouse issues sorted easily by KartzHub
When choosing the right inventory tool, you should look at the below aspects the software should fulfill:
- You should be able to monitor and update the stock levels across all locations.
- Should be able to transfer the products easily from one warehouse to another
- Sync with other crucial business processes like shipping and accounting.
- Efficient fulfillment tracking.
- Create purchase orders.
- Cloud-based software to track your inventory from anywhere.
- Efficient dashboard that offers transparency of your inventory and operations.
Discover the power of this next generation software through KartzHub. It’s the only platform that provides inventory management, order management, listing into many marketplaces, shipping and accounting at a single location at an affordable price. Take your business to new heights with KartzHub. To test our software, take our free 14-day trial or talk to our executive for more details.