Those operating the warehousing and distribution components of various businesses are sometimes gently ribbed for doing nothing more than ‘moving boxes’ or ‘box dropping’. However, drop the ball in distribution and the warehouse and substantial problems quickly appear: the movement of goods from origin to point of consumption is far more difficult and expensive. That’s not all; warehousing and distribution done well as part of a broader integrated Enterprise Resource Planning solution enable efficient scale, while the rest of the business concentrates on production rather than moving goods to customers.
As they say, though, there is often more than a hint of truth in most jests and so it is for warehousing and distribution. Admit it, the core function is indeed moving boxes from here to there. A simple activity on the face of it, but the more boxes, the more complex the challenge. That’s a major factor that makes unimpeachable efficiency an absolute must, but it’s not the only one. The other is that warehousing and distribution only add value when the goods move seamlessly, fast, and with minimal errors.
Of course, the recent interference with the supply chain which has come as a feature of Covid response measures has thrown into stark relief the necessity for the smooth operation of every part of that chain. Fiddle with one part and compromise the integrity of the whole thing. Factors like workers being kept off the job owing to isolation requirements, the so-called ‘great resignation’ and the difficulty of getting quality staff via the immigration route, and various other challenges are decimating supply chains everywhere.
What these forces mean in practical terms, is that warehousing and distribution is under ever greater pressure to perform, with fewer personnel, and greater accuracy. The last thing you need is any sort of mistake – after all, mistakes cost money.
How NetSuite can help
We’re in the business of providing software that helps a wide range of organisations do things better. That extends to warehousing and distribution, an area where NetSuite has specific solutions designed to accelerate your operations.
Of course, warehousing and distribution shouldn’t be seen in isolation and with NetSuite, it most certainly is not. In fact, comprehensive inventory management must encompass the full supply chain, from the order book right through to the point of manufacture. After all, the movement of goods into and out of your organisation is how it makes money, right?
That’s what makes alarming the fact that most small to medium businesses manage inventory using nothing more sophisticated than a spreadsheet (hands up if this is you! Exact figures aren’t available for New Zealand, but an American study found nearly one in two would have to put a paw in the air).
Why is inventory management (underpinning effective warehousing and distribution) so important? You probably instinctively know the answer, but here it is anyway: Inventory management goes beyond knowing what’s on the shelf. It extends to tracking and organising goods from suppliers, through manufacturing, and on to the end user.
As you know, too much inventory drives up costs. It takes up space. It gets complicated. Things can expire or mould in a forgotten corner, wind up obsolete, or otherwise tie up capital best used elsewhere. Poor inventory management can mean lost sales and disgruntled customers.
In short, it is bad business.
An inventory management system as part of a fully integrated ERP solution means visibility across all channels, ensuring the right items are available, at the right time, and in the right place. It’s not only the power to know, but the power to anticipate, create and fulfil.
We’d love to demonstrate how NetSuite can do it better.
