Tracking Warehouse Inventory and Ensuring Optimal On-the-Shelf Availability (OSA) Stock Levels

Missing items in the warehouse is a challenge that must be addressed when updating inventory management - check how Yango Tech solved this one and more.

Overview

Tracking warehouse inventory and ensuring optimal On-the-Shelf Availability (OSA) stock levels is crucial for business operations. With accurate management of inventory and stock levels, companies can reduce costs associated with both. 
By leveraging a warehouse management system powered by smart algorithms and software, businesses gain real-time visibility into their inventory, empowering them to make data-driven decisions. This ensures that products are readily available for customers when they need them, fostering customer loyalty and providing a competitive edge in the market.

Approach

What is the main challenge with inventory tracking?

The main challenge when tracking inventory in a warehouse is stock accuracy and real-time visibility. 

This involves effectively managing and updating inventory data as stock moves in and out of the warehouse. Factors such as manual errors, delayed or inconsistent data entry, misplacement of items, and inadequate inventory management systems can result in discrepancies between recorded and actual inventory levels. This lack of visibility can lead to the above-mentioned stockouts, overstocks, inefficient order fulfillment, and reduced customer satisfaction.

What steps are required to avoid errors in inventory management?

Overcoming this challenge requires implementing a stable and reliable system that consists of: inventory tracking systems, scanning technologies like barcoding or RFID, and established standardized processes. Once optimized regular inventory audits are required to maintain accurate and up-to-date inventory information in the warehouse.

What is the reason for missing items?

The main challenge when tracking inventory in a warehouse is the accuracy and real-time visibility of stock. This involves effectively managing and updating inventory data as stock moves in and out of the warehouse. 

Common factors are: 

• manual errors
• delayed or inconsistent data entry 
• misplacement of items
• inadequate inventory management systems

Solution

A streamlined warehouse is the heart of successful e-commerce. A consistent history of orders made in full is created with the help of technology powered up by advanced custom assets. Yango Tech developed a solution that tackles the mentioned issues affecting warehouse inventory and therefore stock levels and missing items. 

The key components of the solution implemented by Yango Tech are as follows:

1. Warehouse Management System (WMS): Enables real-time inventory tracking and updates every 3 seconds, ensuring accurate and up-to-date information on stock levels. Every unit and its detailed location within the warehouse shelf can be tracked. The centralized system allows a detailed review of the inventory. The advanced integration allows the stock level updates to reach the WL Store app in real time, avoiding the possibility of buying items that are not in stock. 
2. Picker App: Allows warehouse staff to collect orders and scan products quickly. It integrates with the WMS, providing real-time updates and ensuring accurate inventory information, including item location, expiration date, and much more. Smart routing through the warehouse allows faster control, but scanning the items is where all the accuracy and power of integration takes place. This way each activity on shelves includes item control providing desired warehouse stock transparency.

3. Auto-replenishment: A proactive inventory management approach, auto-replenishment automatically triggers the replenishment of products when stock levels reach a predetermined threshold. The benefits of auto-replenishment include reducing the risk of stockouts, as the system automatically initiates orders before inventory runs out. This helps maintain consistent product availability, preventing lost sales opportunities. The optimization of inventory levels prevents excessive stock that ties up capital and increases holding costs. It improves efficiency by streamlining the procurement process and reducing the need for manual intervention. Ensuring products are consistently available, it boosts customer happiness.

Results

The implementation of the Warehouse Management System and supporting solutions yielded the following results:

• Transparent warehouse operations with real-time inventory tracking.
• Up to 1% of missing items.  
• Up-to-date product levels and improved visibility into stock availability.
• Improves OSA up to 99%.
• Accurate data for ordering plans, reducing excess inventory and improving cost-efficiency.
• Up to 40% reduction in waste through better inventory management.
• Increased customer satisfaction due to improved product availability and order completeness.

To successfully optimize warehouse operations, Yango Tech implements a custom tech stack comprising the Warehouse Management System and Picker App. This solution provides accurate, timely information, ensuring optimal OSA levels and with consistent availability improves customer satisfaction. Real-time inventory tracking, efficient order collection, and data-driven decision-making contribute to the growth and profitability of successful e-commerce.