From managing inventory to fulfilling orders, smart warehousing has an impact on all kinds of logistics systems. There are many ways in which warehousing strategies might assist your business, such as – inventory management, pricing tools, processing, packaging, technology, etc. They also look into suitable and convenient locations and outsourcing requirements. Many businesses today seek out the top logistics companies to help them with their warehousing strategies. Businesses also use distribution strategies to deliver goods to their end consumers quickly and safely. Client service skills and customer retention levels have improved significantly due to the same. The impact of distribution channels on a wide range of company activities, from managing inventory, warehouse management to transportation, is enormous. To simplify the process, here are a few warehousing and distribution strategies that businesses use.
Intensity of Distribution
Intensive distribution may indeed be preferred for businesses that participate in aggressive marketing. Both fast-moving consumer products and long-lasting commodities are excellent prospects for extensive distribution. Because of the large distribution strategy, a product being accessible at each and every store is a possibility. Intensive distribution’s main objective is to attain and reach as much of the target audience and market as possible.
Accurate Inventory Management
Being aware of your stock and inventory is essential for better management. Luckily, inventory tracking has become less labour demanding, thanks to technological advancements. Automated Identification and Data Acquisition is a technology that includes bar code scanners and location tracking solutions which makes the process smoother and faster. With little human involvement, these systems can recognise and organise information on inbound and outbound orders. Moreover, proper recordkeeping also decrease errors.
Exclusivity of Distribution
Businesses that deal with products of high value and have a good reputation in the market generally go for Exclusive distribution. This is because customers who are prepared to travel and have a great emotional stake in a brand desire exclusive access and delivery. A luxury apparel firm, for example, could only operate stores in certain areas, targeting a userbase with the finances to purchase their products. Exclusive distribution is also favourable in terms of avoiding direct competition. Distributors are not in danger of working with competitor brands because of an exclusive contract between them and the label.
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Price Stabilising Methods
Proper and quality inventory leads towards the next step in warehouse financial management. Pricing is influenced by determining what kind of goods are in stock and the amount of demand there is for that product. Customers may seek out another supplier who can provide long-term price stability if the selling prices for the same products change too frequently. Maintaining price stability assists a business to manage orders and inventories through periods of higher or lower demand.
If you are looking for warehouse services in Bangalore or options to outsource some of your warehousing and distribution requirements, you can get in touch with Varuna Group. A 3PL warehousing and logistics company can help you better manage your supply chain management requirements.