In multi-channel electronics retail, inoperative activities seldom begin at the front door but arise deep down in disjointed supply chain structures.
When e-commerce fulfillment programs operate separately from store POS systems and main warehouse databases, the visibility of inventory decreases. Stores find themselves with surpluses of products that stand still; in contrast, online platforms have shortages of the hottest products.
Merging backend inventory management with an enterprise Warehouse Management System (WMS) and linking it directly with real-time last-mile delivery leads to flexible and easily adaptable supply chain.
The Operational Risk of Siloed Inventory Networks
Two distinct stock inventories for online and offline shops limit the flexibility of retail operations.
The main operational challenges resulting from antiquated supply chains are as follows:
- Too much stock inventory results in high holding costs : Keeping excessive safety stock at retail outlets increases working capital needs.
- Lost cross-sales : Customers may see ‘out of stock’ notifications when trying to make a purchase online while the product is available in the retail stores in their proximity.
- Delays in shipment : It is not always possible to ship from distant central warehouses to minimize delivery costs and save time.
3 Pillars of Supply Chain Modernization
1. Multi-Location WMS & Unified Stock Pools
New-age WMS software integrates all warehouses, fulfillment centers, and retail shops onto one real-time dashboard.
- Stock Transfer Note (STN) Capability : Automated STNs enable facilities to smoothly manage inventory between underperforming spots and demanding places.
- FIFO / FEFO Picking Workflows : Automated pick-lists tell warehouse workers the quickest path to take, shortening the time taken for the order delivery to below 15 minutes.
2. Live Rider Management & Dynamic Route Optimization
Fulfillment of orders necessitates synchronization of warehouse speed with effective last-mile distribution. The use of last-mile technologies, aided by technology partners such as Edgistify, guarantees the efficient functioning of logistics:
1. Automated Rider Assignment: The system assigns the job to the nearest available driver based on distance and vehicle capacity.
2. Multi-Stop Route Optimization: The algorithms order the drop-off points to minimize travel time and reduce fuel consumption.
3. Live Telemetry & Geofencing: Managers monitor the locations of their fleets in real-time.
3. Automated Post-Sales & Reverse Pickup Workflows
To obtain high-value electronic devices, ideally, reverse logistics of returning, exchanging, or repairing devices is a must. The centralized Warehouse Management Systems record the reverse shipping notes in real-time, assisting the delivery person to evaluate the returned devices on the spot while generating e-receipts and dispatching the returned items to the repair center.