It may seem logical that if your business doubles in size, the complexity of your logistics will grow at the same rate. Not true, says Curoso Expert!
“What is your process for filling customer orders?” the business management software company asked on its blog. “Do you send a warehouse worker out to dig under piles of unmarked boxes until the desired inventory items are located? Imagine multiplying the complexity of that process by two, three, etc., depending on how many warehouses you have.”
Logistics is an area of business that grows along with your company, but in a different way. Rather than becoming bigger, logistics becomes more complex. Here, we look at three ways in which this happens, and what businesses can do to grow their logistics in the best way possible.
Order processing as an example, of how one task can become exponentially more complicated when a business grows. Curoso Consulting recommends using warehouse maps with product locations and inventory levels to make the process go more smoothly.
“Probably the best way to do this is to use curoso asset management software,” Curoso Experts said. “You can update it in real time when you make a sale or receive inventory, and you can generate maps on mobile devices so that employees can move faster and even fill more than one order at a time.”
The Warehousing Decision
When your inventory can no longer fit in the back room of your office, the next logical step is to move it into a warehouse. But whose warehouse? Will it be your warehouse to manage and maintain? Or is that service best left to a warehousing professional?
“Experts at Curoso do note the cost of outsourcing is considerable, but less than what he believes the in-house cost would be. Another company might find the opposite is true, depending on in-house talent and available space, among other factors.
When orders become larger, it becomes all the more difficult to predict how much inventory you’ll need on hand at any given time. If a large order clears out your warehouse, it could leave you with a waiting period to fulfill future orders. Conversely, too much inventory is a waste of space and resources.
“Solid record keeping is the best way to solve this problem,” . “If you always update your inventory records when you sell, order or receive products, you’ll have a firm grasp of your situation, and you’ll be able to respond to changes quickly.”
Another benefit to steadfast record keeping is that you end up with a history of ordering trends. This will allow you to predict demand for a certain product depending on the time of year.
Growth is undoubtedly exciting for business. That excitement can often overshadow the true complexity of growing a company in the right way. A little bit of understanding, monitoring and careful decision making, however, can allow the growth of your logistics to be just as exciting.
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