Amidst the myriad of tasks a manufacturing business generally involves, inventory management can undoubtedly be considered one of the most important. The reason being, the crucial and complex steps of the inventory transfer process, which is a nearly impossible task to do manually with regards to the pace of today's booming business market and consumer base. And to skillfully manage this inventory transfer process without any error, with increased time and cost efficiency, adapting to an integrated inventory management software powered by intelligence is the only rational decision. Therefore, in this article you will get an in-depth introduction of the inventory transfer process and also the guide to choosing the perfect software fitted for your company.
What is inventory transfer?
Inventory transfer is the process of transferring produced goods from one warehouse to another in order to replenish product stocks and meet customer demands dynamically. It is a crucial part of every manufacturing business because only a well-regulated and organized inventory transfer can ensure a smooth sailing distribution process for every company. You can easily determine if a company is growing exponentially by monitoring the frequency and complexity of its inventory transfer. And for growing businesses, manually operating and regulating this entire process can lead to human errors, time inefficiency and even cost inefficiency which can affect the distribution cycle and reflect on the bottom line and eventually hurting the growth of the company.
To understand the complexity of inventory transfer, first, you will have to know the steps of it. Usually the inventory transfer process can be broken down into a few steps.
- Ascertain the quantity and destination of the inventory in the process.
- Register the inventory list including key information (i.e., SKU, unit, category, etc.)
- Preparing the inventory for the transfer.
- Send off the shipment from the transferring warehouse.
- Collect the shipment in the receiving warehouse.
- Cross-check and update the inventory list in the central database.
Now, with the easily defined steps, there are actually a lot of crucial data elements in its order-to-cash cycle. And these data elements can only be errorlessly managed and the process optimized using software.
Hurdles of Inventory Transfer
There are a lot of complex bottlenecks that can surface while managing inventory transfer. For example;
- Communication Issues: This may not seem like a significant problem, but it actually is one of the common and repetitive issues that warehouses face during a big inventory transfer. Communication issues occur in terms of what and how much inventory is being shipped, if there were any damaged goods and if so what is the amount it can cause loss of, also what category is being transferred on which day, and many more. And the majority of these occur due to human errors, miscalculations, or simply by mismanagement of information by warehouse staff. The only way your company can counteract these mistakes is by using an integrated software that will not only deliver and update foolproof data every time but also conduct the real-time data analysis of the inventory management will save your company a hefty amount of material losses.
- Demand/supply management: Error in demand and supply management is the most common that happens while handling an inventory transfer. Suppose your company is not well aware of the minimum and maximum amount of goods available at each warehouse. In that case, that will only result in repetitive shipments and back to back increased fuel cost and road time. And all of these will leave a mark on the profit margin of your company.
- Purchase order management: Without the perfect data of multiple purchase orders, your company can suffer losses in overspending and miss out on better and money saving bulk deals from suppliers. By using an integrated software system, your company can easily keep track of all the authorized and pending purchase orders.
All of the aforementioned issues and more could be handled by just using the right inventory management software for your company.
Nuport's Supply Chain Intelligence Platform
Nuport Supply Chain Intelligence Platform is one of the best fitting software for your manufacturing business which ensures not only optimized management for your inventory transfers but also provides completely automated distributional planning for your company.
Nuport's Supply Chain Intelligence Platform adds value to your company through real-time data analysis and live monitoring of the inventory levels of all the warehouses which allows you to stay up-to-date with all the product availability requests and stock transfer requests. It also sends automated fulfillment requests in case product stock goes down, saving you both time and money and adding to the bottom line.
To ensure this advancement for your company and the smooth sailing of your business, schedule a demo today!