When it comes to inventory management, companies are starting to change the way they fill their warehouses. For instance, Home Depot wants fewer items on its shelves and it wants them to be within customers’ reach. Tom Shortt, Home Depot’s senior vice president of supply chain says to “Get comfortable with days of inventory, not weeks.”
Retailers are rethinking their inventory reduction strategies, and are targeting their sales approach to handle inventory reduction strategies. This is a shift happening across the retail industry. Companies are examining ways to profitably serve the growing needs of online shoppers, while making their network of stores less of a financial burden.
Corporations such as Wal-Mart Inc. and Target Corp. are reducing inventory, they have moved products to shelves in faster time. Because inventory is one of retailers’ highest costs, many are looking for any solution to reduce that expense. With the latest trend to reduce inventory levels, meet demands, then savings can be used elsewhere that would require less space, what does this mean for their warehouse?
The latest retail trends suggest a desire to lower warehouse and inventory costs. With less items to carry in stores and in the warehouse, storage can be reduced. Retailers can decide whether to reduce warehouse sizing and spend resources elsewhere in their organization, with an integrated asset tracking solution for inventory. With an effective warehouse management solution, inventory can be tracked to provide significant process improvements and reduce turnaround times, ultimately increasing profits.
Retail operations are improved with the ability to oversee inventory levels, trends, locations, and more, supported by a user-friendly interface combined with efficient reporting functions. With a warehouse solution that allows you to run multiple facilities on the same system, it’s easier to have complete visibility of your inventory and shift as needed to enhance purchasing decisions.