5 Ways to Elevate Your Supply Chain in 2024

Inventory optimization

While numerous functions and tasks are performed within the four walls of a distribution center (DC), managing inventory is consistently the area that can drive positive or negative performance. There are many options and directions that an organization can take, both small and large, that can improve receiving, storage and order fulfillment.

Slotting software
Begin optimizing your warehouse inventory with the low-cost entry point of slotting software. Slotting allows an operation to slot or store products that are ordered more frequently in easily accessible areas and locate other products often ordered together. This creates shorter pick times, less travel time for workers and increased productivity.

Warehouse management software
There are many warehouse software options, all with specific strengths and weaknesses, overlaps and operational limitations. Warehouse management systems (WMS), warehouse execution systems (WES), and warehouse control software (WCS) are the most common types of warehouse software. Integration with enterprise resource planning (ERP) software, organizational tech stacks and connections and control of material handling systems and robotics are all considerations. Partnering with supply chain experts with a proven track record of successful software implementations can help an organization understand its needs and select the right software for its supply chain network.

Small-footprint solutions
A growing solution for organizations that need to utilize existing warehouse space but need to increase capacity, storage and efficiency is a small-footprint solution. Using a high-density solution like AutoStore, organizations can effectively skip over a phased approach to automation and employ an industry-leading inventory management automation system.

Inventory optimization software
Reviewing inventory across the network enables optimization of both the assortment and level of inventory required in a facility, considering throughput and storage capacity constraints, minimizing the potential for disruption and excess building-to-building transfer. This can include optimization of the placement to maximize the use of the most productive areas of a facility.

Return management

Having an effective return management plan is essential, even if your return policy is that you don’t do returns. Processing, restocking or disposing of previously purchased products can be different functions and processes, even if you use a circular economy approach. Customers continue to demand customer-friendly return policies while still using the practice of bracketing (buying multiple sizes of the same product, keeping one, and returning the rest). Understanding how return policies affect warehouse practices and the bottom line can help an organization develop an effective return process.

Dedicated return facility
As organizations strive to make returns a competitive advantage while making their products more sustainable, a dedicated return facility could be a solution. This facility is solely tasked with receiving previously purchased products and quality-checking the products to either be reentered into stock, sold at a discount, or broken down for parts or raw materials. While this option has a considerable upfront cost, it could solve an organization’s return problem over the long term.

Segment and adjust customer policies
Using customer data and buying behavior, an organization can segment customers into groups that operate appropriately within return policies and groups that abuse the policy. With this knowledge, companies can reward and gain loyalty from the customers they want and use stricter guidelines toward abusers.

Third-party liquidators
Many organizations have decided to do away with some or all of their returns. Selling truckloads to third-party auction companies allows organizations to take these products off their books while receiving some compensation.