5 Strategies To Manage Multi-location Inventory

A lack of resilience in supply chain management has been cited by over 90% of business leaders as a focus of their investment plans in the next two years. Only 21% of supply chain leaders believe they have a highly resilient supply chain management process today. These views are natural after shifts in the global supply chain caused by world events. All businesses with multiple inventory locations – even those that identify as small or medium-sized – must learn to manage inventory to scale. The process presents significant challenges, including communication inconsistencies, sluggish demand forecasting, and poor inventory control. Yet, multi-location management can take a business’s profit margins to the next level by reducing costs and improving its workflow. To stay competitive, modern businesses should adapt their multi-location supply chain with inventory management software. By doing so, they gain access to real-time inventory visibility, fulfillment features, scalability, and a more predictable workflow while tackling the many challenges that come with additional inventory locations.

Advantages of multiple inventory locations

Managing multiple inventory locations presents many advantages to businesses that can scale successfully, including:

• Reduced shipping costs
• Faster deliveries
• Lean inventory and manufacturing
• Market expansion and specialization
• Supply chain optimization
• Risk management
• Better customer relationships
• Increased environmental compliance

The principles of lean manufacturing mean that if a customer would not be willing to pay for a part of a fulfillment process, that process can be removed to increase efficiency. By streamlining fulfillment across multiple locations, inventory management software encourages the benefits of lean manufacturing, which includes faster deliveries and lower shipping and delivery costs. Additionally, this process frees employees from wasting time that would be better spent implementing innovative strategies and improving quality control at all levels of the supply chain.