Distributors: OMS for Effective Warehouse and Inventory Management

Whether you're steering a small enterprise or navigating the vast waters of a large corporation, one thing remains constant: success will always remain out of reach without effective inventory management. The delicate balance between having too much or too little stock can pose challenges for any organisation. 

Without a streamlined system in place, the intricacies of inventory management become a headache, regardless of the size of your firm.

Enter the Order Management System (OMS)—the key to  effective inventory control in the modern climate of sprawling supply chains. 

In this blog post, we'll delve into the pivotal role of OMS within the distributor industry, shedding light on how it transforms inventory and warehouse management — two key functions that keep your distributorship operations running like clockwork.

Navigating Inventory Management as a Distributor 

Picture this: your warehouse, the bustling nerve centre of your distribution operations. Now, imagine the shelves stocked to the brim, or worse, eerily empty. Both scenarios spell trouble.

In the distribution game, finding the sweet spot between having too much and too little inventory is an art. Overstocking ties up valuable resources and can lead to financial woes. On the flip side, understocking means missed opportunities and disgruntled customers. 

It's a delicate balance—and is much more difficult to achieve in practice than what it may seem on the surface.

This is where you need the right technology and processes to ensure that you always have the correct amount of inventory on hand to comfortably fulfil all your orders, without taking on too much unnecessary, costly stock.

This is where Order Management Software comes in and is a crucial tool for any distributor. The OMS takes charge of your entire order fulfilment workflow and ensures your operations run like a well-oiled machine. 

Say goodbye to the headaches of manual inventory tracking and the nightmares of overstocked or understocked warehouses. The Order Management System (OMS) takes the lead in reshaping how distributors manage their inventory effectively.

From processing orders to tracking inventory levels, every facet is synchronised for peak efficiency. 

Imagine a world where as soon as the scanner captures the SKUs of your ordered items, your inventory updates itself—no more manual data entry, no more spreadsheet gymnastics. With OMS, the moment a SKU is scanned, consider it done. 

Your inventory adjusts in real-time, providing you with an instant snapshot of your stock levels. The OMS not only removes ordered items from your inventory with a snap but also does away with the need for you to navigate the labyrinth of spreadsheets to manage multiple orders. The OMS takes care of the heavy lifting, ensuring accuracy and efficiency.

 This not only helps you keep track of remaining products but also allows you to handle multiple orders from the same or different customers without a fuss. The result? A warehouse that steers clear of the chaos of overstocking and understocking.

But the perks don't end there. OMS doesn't just stop at inventory numbers; it provides a treasure trove of accurate information. From stock levels to expiry dates, batch numbers, returns, and more, OMS keeps you in the know. Distributors can anticipate significant changes well in advance, enabling quicker replenishment and reducing the risk of running into stock-related issues.

Effective Warehouse Management

For distributors, the warehouse is sacred ground. In the world of warehousing, space is currency.

Every inch of space is a valuable commodity and even the smallest changes can spark a chain reaction of positive outcomes. This is particularly true for goods with a high bulk-to-value ratio, where every square foot counts.

With OMS software, every item has its place, and every movement is tracked seamlessly. Which means the software is the key to optimising warehouse space and transforming the way goods flow within.

Even just a modest reduction in merchandise opens up valuable space, a commodity that is particularly precious for high-value goods. This newfound space doesn't just sit idly; it could be the key to introducing a new product line or postponing the need for additional warehouse capacity.

The advantages don't stop there. A slight decrease in warehouse congestion has a ripple effect on the fluidity of goods movement. Which means that reducing warehouse congestion isn't just about creating empty spaces; it's about optimising the flow of goods. 

Effective warehouse management is not just about achieving streamlined storage. With a bit more room to breathe, you gain the luxury of rethinking shelf space. Products can be strategically placed for maximum visibility and accessibility. This gives you the opportunity to showcase your inventory in a way that enhances the customer experience and drives sales.

Additionally, it creates a more efficient working environment for the dedicated members of your team staffing your warehouses, enhancing productivity and ensuring that things happen with precision.

When it comes to warehouse management, where every box and pallet plays a role, the significance of efficient inventory management cannot be overstated. It's not just about reducing clutter; it's about unlocking the untapped potential within your warehouse walls. 

With the right OMS setup, you will be able to get the most benefit from your warehouse space, creating opportunities for growth, and optimising the entire workflow. 

OMS for Better Shipment Scheduling

In the world of logistics, scheduling shipments can often feel like navigating a labyrinth. However, with best-in-class Order Management System (OMS) solutions, this process becomes a well-oiled machine. 

These systems are meticulously designed, basing their logic on a framework that considers various factors, such as transit days, days to cover, shipment-based requirements (as opposed to transit day-based), valid shipping days, and late pick-up times from carriers.

This shift ensures a strategic approach to shipping that goes beyond the conventional, setting the stage for a more efficient and effective supply chain.

From transit days to late pick-up times, OMS solutions revolutionise the scheduling of shipments, ensuring a seamless symphony of coordination across suppliers, warehouses, distributors, and retailers.

Because the OMS software is in charge of the entire order processing workflow, the system is able to consider the entire supply chain when scheduling shipments. The system will consider transit days, days to cover, shipment-based requirements, and valid shipping days, all while accommodating late pick-up times from carriers.

At the same time, the OMS is able to make this process simple for the team members to manage. 

At the heart of these systems is an easy-to-use interface, essential for seamless coordination of all shipment requirements and timing. The emphasis is on making the complex task of shipping as straightforward as possible.

An easy-to-use interface makes it possible for your team to coordinate diverse shipment requirements and timing across the supply chain.

Recognising that the most critical phase in supply chain management is product delivery, OMS takes the reins to ensure a smooth process. The coordination required among the sales department, warehouse, distributors, and retailers is constant and inevitable. This is where an OMS steps in, tailored to meet these dynamic needs. 

Equipped with advanced capabilities, it not only facilitates planned delivery but also efficiently handles return requests, adding an extra layer of control and foresight to the logistics game.

In essence, OMS doesn't just schedule shipments, it ensures that every step in the supply chain is perfectly timed and coordinated.

Advanced Shipping Solutions with OMS

In the pursuit of excellence, top-tier Order Management System (OMS) solutions go beyond the basics, addressing the following additional shipping considerations that are essential for efficient shipping. 

1. Standard Packing

In the world of shipment logistics, efficiency is king. In this regard, the standard pack quantity is an important metric to ensure that container space is used effectively when shipping. When considering a standard container or package size, the standard pack quantity gives an indication of the number of items that can be packed into that container or package.

The hallmark of an effective OMS solution is its ability to apply standard pack logic seamlessly when standard pack options are in play. This quantity can then be used to calculate the number of containers required for shipping—which has a knock-on effect on cost, shipping times, and scheduling. 

When this number is calculated correctly, it will facilitate accurate tare weight calculations, ensuring that the true weight of the goods is reflected, and sets the stage for palletising configurations that maximise space and minimise waste.

2. Bar Code Control Mechanisms

An OMS solution gives you the ability to dynamically create custom barcodes that can be used to control the flow of shipments  through your warehouse and 3PL partners until it reaches  its delivery destination.

The best OMS solutions offer not just order-level but also destination-level control of bar code label format definitions. It's a meticulous approach that recognises the nuanced requirements of each destination and order, ensuring that bar code labels are not just standardised but tailored for maximum efficiency.

The best OMS solutions empower businesses with the flexibility of defining the number of copies for each bar code label. 

In the interconnected web of supply chain partnerships, the ability to seamlessly integrate with trading partners is non-negotiable. The best OMS solutions make acquiring and updating trading partner label changes a breeze. This ensures the effortless acquisition and updates to orders for absolute customer label compliance.

Moreover, these setups are dynamic, accommodating OEM and other supplier-specific information with automatic Electronic Data Interchange (EDI) updates—a feature that ensures real-time synchronisation with supplier-specific data, transcending traditional limitations. This means staying ahead of the game, effortlessly adapting to the evolving needs of your trading partners.

3. Freight Management

Quality OMS solutions go beyond simple shipping—they master the logistics of freight consolidation. This is the  strategic process where multiple shipments are strategically hauled to a central destination point, efficiently broken down, and then shipped to their final destinations.

This level of sophistication often requires the inclusion of pool/consolidation point codes on the Advanced Shipping Notice (ASN) or Master Bill of Lading paperwork, complementing the traditional Packing Slip and Straight Bill of Lading. These codes ensure that the breakdown and shipment from the consolidation point are executed seamlessly.

But what makes the best OMS solutions stand out is their flexibility in carrier identification. These solutions provide multiple avenues for identifying carriers, be it through internally assigned codes or the standard carrier assigned code (SCAC). The SCAC code, recognised by the National Motor Freight Association, becomes a pivotal element in shipper information and ASN reports, ensuring a seamless flow of information throughout the shipping process. The SCAC code ensures that carriers are accurately identified, adding a layer of efficiency to the entire shipping process.

With the advanced capabilities of the Order Management System,  shipping isn't just about getting products from point A to point B—it's about orchestrating the movement of goods with precision.

4. Consignment Warehousing

Consignment warehouses, a crucial aspect of modern logistics, means that your logistics operations are extended beyond the confines of a single facility or off-site warehouse. 

Consignment warehouses introduce a new layer of complexity to the shipping process. Whether goods are leaving your facility or being shipped to a consignment locale, the OMS will ensure that all your facilities and logistics partners work together to get orders shipped out correctly and on schedule. The software seamlessly integrates and manages shipments to and from these unique locales.

This means that you don't have to confine shipping to your facility or a traditional warehouse.  The software gives you the power to coordinate and manage shipments with unparalleled efficiency, even in the complex terrain of consignment warehouses.

In essence, consignment warehousing becomes a strategic extension of your supply chain. 

Furthermore, consignment warehouses demand more than just efficient shipping—they require precise inventory control. OMS solutions with a focus on consignment warehousing provide businesses with the tools to manage inventories with finesse. 

When dealing with consignment warehouses, businesses benefit from a solution that simplifies the logistics, ensuring that shipments and inventory control are seamlessly managed with a few clicks.

5. Tracking Returnable Containers

Efficiency is the heartbeat of logistics, and OMS solutions take this to heart by seamlessly integrating robust processes for the proper management of returnable containers. Whether containers are returning from customers or being sent out for reuse, the OMS manages the flow of these vessels. Furthermore, returnable containers often consist of various components, and the best OMS solutions recognise the need for precision in tracking each element, from crates to pallets.

The goal here is to eliminate shortages while cutting down additional costs associated with expendable packaging. The OMS provides businesses with the ability to track returnable dunnage and its components, ensuring that the logistics flow is not disrupted by shortages or unexpected expenses.

The ability to close the loop on returnable container management ensures a smooth and cost-effective cycle, aligning with the broader goals of sustainability and financial prudence. 

This type of management is about optimising the use of packaging materials, minimising waste, and contributing to a more sustainable and cost-effective logistics process.

6. International Shipping and Multi-Currency Capabilities

The ability to handle international shipping dynamics and seamlessly navigate multi-currency landscapes is a strategic necessity for businesses operating on the world stage. This is why many OMS solutions provide features that cater to the complexities of international shipping.

Operating in a global marketplace demands a system that transcends borders, and these OMS solutions rise to the occasion. They are designed to handle the intricate web of customer paperwork requirements tied to international commercial terms, commonly known as incoterms, and FOB rules. This includes navigating through export paperwork and generating commercial invoices with precision. Top-tier OMS solutions streamline export processes, eliminating bottlenecks and ensuring that the required paperwork is generated seamlessly.

Operating in a global marketplace often means dealing with multiple currencies. OMS solutions with a focus on international shipping and multi-currency capabilities ensure that sales for each order are accurately reflected in the respective currency.

 This precision extends to the generation of invoices, where the system identifies the currency in which the transaction occurred, minimising the complexity of cross-border financial transactions.

Beyond paperwork and currency tracking, advanced OMS solutions provide businesses with a panoramic view of global sales. Whether it's tracking sales by region, currency, or specific orders, the OMS becomes the lens through which businesses gain strategic insights into their international operations.

In essence, international shipping and multi-currency capabilities become the passport that allows your business to traverse the global marketplace seamlessly.

Conclusion

In this article, we explored the ways that OMS ensures flawless inventory management and seamless warehouse operations for any distribution company.

Beyond the fundamental role of managing order processing from various sales channels, OMS brings a myriad of benefits that contribute to the overall success of your business.

One of the key advantages is the real-time visibility into inventory facilitated by the power of automation. This not only minimises the risk of overstocking or understocking but also provides a clear and accurate snapshot of your current stock levels.

Moreover, OMS enhances your forecasting capabilities, offering valuable data-driven insights that empower you to make informed decisions regarding inventory allocation. The ability to create purchase orders, shipping labels, SKUs, and manage backorders seamlessly adds a layer of efficiency to your operations.

In the grand scheme of distribution, OMS isn't just essential—it's transformative. It's the tool that ensures your shelves are stocked just right, your operations run like clockwork, and your customers leave satisfied.

Gone are the days of grappling with the uncertainties of overstocking and understocking. The adoption of a robust OMS is the game-changer your distribution business needs.