Overcoming Inventory Visibility Challenges in Multi-Warehouse Operations

To overcome these challenges, multi-warehouse operations are using big data and AI to optimize inventory management. Artificial intelligence (AI) tracking, digitized warehousing, and integrated, real-time data analysis streamline fulfillment operations, improving overall operational efficiency while reducing the potential for stockouts and manual errors.

Understanding inventory visibility in multi-warehouse environments

Inventory visibility refers to a company’s ability to monitor its stock levels in real time. In multi-warehouse environments, this means being able to see inventory levels across all warehouse locations, distribution centers, brick-and-mortar stores, and current orders. 

When running a multi-warehouse operation, inventory visibility is crucial for managing and monitoring inventory to prevent stockouts and overstocking. Highly visible, centralized inventory management improves the customer experience by providing real-time availability and demand forecasting, so you can quickly fulfill orders with stock that is where you need it, when you need it.

Common inventory visibility challenges

Inventory visibility challenges vary widely across industries and locations, but a few common issues apply across the board.

Lack of real-time data across locations

Without real-time stock information for each warehouse location, warehousing and fulfillment operations can’t accurately fill orders. Accurate real-time availability information lets users immediately identify product availability and location, allowing for quicker fulfillment and more accurate turnaround and shipping estimates.

Disconnected systems and platforms

Fragmented inventory management systems prevent multi-warehouse operations from getting a full picture of available stock. Organizations with separate inventory visibility software systems make decisions based on unclear or inconsistent data, which can result in incorrect stock levels. 

Inventory inaccuracy and stock discrepancies

When calculating inventory, even small errors like a wrong digit, misplaced decimal point, or incorrect label can cost a warehouse operation significantly. Manual errors and oversights can lead to overstocking or stockouts, which leads to diminished customer service quality, compromised partner relationships, and costly inventory corrections.

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Strategies to improve inventory visibility

Optimize inventory visibility and simplify multi-warehouse inventory management and fulfillment with the following strategies:

• Implement centralized inventory management systems: Keep your inventory information across warehouse locations in one unified system that provides real-time visibility and updates.
• Leverage barcode scanning and RFID technology: Incorporate barcode and RFID scanning into multi-warehouse systems to track real-time stock levels and products throughout the fulfillment process.
• Integrate real-time data across warehouses: Use sensors and tracking systems to continuously collect, integrate, and analyze inventory information across warehouses.
• Automate inventory tracking and reporting: Use AI and predictive analytics to monitor inventory levels across all warehouses, report discrepancies, and automatically order new stock as needed.

Advanced warehouse management platforms incorporate digital and AI-powered inventory visibility solutions to facilitate smooth fulfillment operations.

The role of technology in overcoming visibility challenges

The right technology is critical for multi-warehouse operations trying to overcome visibility challenges. 

Cloud-based solutions provide centralized, seamless integration between systems. Data gathered from multiple locations can be accessed from anywhere, and warehouses don’t have to worry about purchasing and maintaining siloed on-site systems.

Modern inventory visibility systems also use AI and predictive analytics to assess demand and forecast inventory needs. Multi-warehouse operations save money by avoiding overstock, stockout, and potential human error.

Incorporating the Internet of Things (IoT) and real-time monitoring further streamlines inventory visibility and management by providing accurate information about stock availability and product traffic to and from each warehouse location. Warehouse management can quickly shift stock between locations or change shipment origins to address stock levels and ensure customer satisfaction.

Best practices for maintaining accurate inventory visibility

Using state-of-the-art inventory management technology ensures full inventory visibility, streamlines warehouse operations, and shields fulfillment operations from unnecessary costs. Follow these best practices to make the most of your inventory management capabilities.

Conduct regular audits and cycle counting

Regularly audit inventory and conduct cycle counts of inventory subsets to verify actual stock availability against system records. Periodic inventory audits help you identify any discrepancies and make corrections to your inventory management system. 

Set up inventory alerts for low stock

Use barcode and RFID scanning to track your inventory levels in each warehouse and set up notifications for low inventory. Upon receiving a notification, warehouse operations with advanced cloud-based inventory management systems can immediately access centralized data about stock availability across all warehouse locations.

Using the available real-time data, users can decide whether to move product between warehouses or order new stock to replenish the low-inventory facility. They can also use this information to adjust order frequency and demand forecasts. 

Train teams on efficient inventory management

Train employees to use inventory management software to prevent stockouts and other disruptions. Focus on helping workers understand how to update stock, pull reports, and work with automated systems to glean actionable, real-time information. Take the time to give them hands-on practice and provide regular refresher courses to address any changes and reinforce best practices.

The future of inventory visibility in multi-warehouse operations

The future of inventory management is in automation and AI-powered machine learning. As global supply chains and omnichannel fulfillment continue to complicate online purchases, retailers, warehouse operations, and distribution centers will have to lean into advanced, centralized technology to remain competitive. 

In addition, growing numbers of online and in-person retailers are likely to see the benefits of outsourcing inventory management to third-party logistics (3PL) partners, which will need the technology to keep up with shifting demand.

Trends among Gen Z consumers indicate increasing interest in brick-and-mortar stores, but online shopping is still projected to increase by $36 trillion worldwide by 2026. To keep up with shifting trends, automated, cloud-based inventory visibility is a must for multi-warehouse operations. 

Multi-warehouse operations across industries are improving profits with inventory management software by Logiwa. Our cloud-based 3PL software is engineered to streamline your fulfillment operations from beginning to end. 

Schedule a demo to learn more about the role of inventory management software in multi-warehouse operations.

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