As a company grows, so do logistics operations. However, rather than getting bigger, logistics becomes more complex, according to Forbes. Having more than one warehouse is a sign a business is growing, but it can make distribution more complicated.
As a business grows, order processing in retail sourcing is one of the tasks that can become significantly more complicated, Software Thinktank stated. Depending on the number of warehouses used by a company, order processing can become more difficult. The company recommended warehouse maps with product locations, while electronic procurement through an asset management software can create better organization. Inventory levels can be updated in real time, which allows employees to work faster and fill multiple orders at a time in some cases.
When orders become larger, it is harder for businesses to assess how much inventory they need at any given time, Forbes said. Large orders could delay future shipments if products are backordered, but too much inventory is a waste of resources and space. If a company does not track inventory levels, the warehouse can end up with a surplus of one product while running out of another. The solution to inventory management is good recordkeeping.
"If you always update your inventory records when you sell, order or receive products, you'll have a firm grasp of your situation, and you'll be able to respond to changes quickly," Software Thinktank said. "It doesn't hurt to plan ahead either. If you notice that certain products are more popular at one location or at a specific time of year, you can stockpile more of those products at the right place and time."
Receiving more orders and expanding to multiple warehouses can be growth opportunities for businesses. Simplifying retail logistics can facilitate the growth process.