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The other side of WMS
In this episode of “What Happens When You Click Buy,” we will explore the other side of warehouse management systems (WMS), focusing on inventory management and procurement to fulfill customer orders. We will discuss warehouse processes, including:
- Receiving and inventory control
- Vendor management
- Demand forecasting
Having enough inventory for customers is crucial; stockouts can lead to backorders or lost sales. Predicting demand is challenging due to factors like lead times and market disruptions like the pandemic.
The main goal is predicting demand accurately, placing purchase orders with suppliers, receiving inventory in the warehouse and storing it efficiently before shipping it out. Inventory control processes ensure that items remain in sellable condition until needed for fulfillment.
Traditionally, procurement was separate from warehousing, but integrating these processes has become increasingly important over time. The key touchpoint between them is the purchase order, which both teams work with closely.
Companies often use spreadsheets for managing purchase orders and demand forecasting but face limitations at scale. Procurement systems integrated with warehouse operations can help streamline workflows more effectively than manual methods alone.
Key takeaway: Ensuring smooth coordination between procurement functions and warehousing processes (receiving and storage) is essential in fulfilling customer needs efficiently while minimizing errors along the way.
