E-commerce sales have continued to increase in the last 3 years. This is certainly a positive thing for e-commerce companies, however, the increase in sales numbers also affects the number of consumer demand. To overcome the increasing consumer demand, the company needs to apply the right distribution center management.
Furthermore, using the right distribution center management requires several methods or stages. Some distribution center management stages that you need to implement, such as:
Use Technology to facilitate works
The first distribution center management point that the company needs to implement is using advanced technology or system. Customer demand continues to increase in terms of numbers and desires. If the company still using traditional technology, it won’t keep up with completing customer demand that continues to increase. Therefore, it is better for the company to use distribution center management technology that can work smarter and more efficient.
Automated systems can easily identify company products, track production processes, and reorder products. Furthermore, the system can provide benchmarks and management of the entire distribution system.
Optimize Slots, and Manage Your Company's Warehouse
The next distribution center management that you need to implement is building management and optimizing slots in warehouse and factory. Warehouse and slot management can coordinate the stock and production process.
Furthermore, using a distribution center management can maintain relevant products and can track where the production process is taking place. When your company uses a distribution system, the company can optimize the omnichannel sales strategy.
Control Outbound and Inbound Shipment
The next stage that the company needs to implement in distribution center management is control over effective outbound and inbound shipments. Inbound shipping is the delivery of stock or goods to the warehouse, whereas, outbound shipping is direct delivery from the warehouse to the customer.
Vendors should work with the warehouses to create a system to practice lean warehouse on time. Make sure the company makes an agreement with the vendor for shipping and time issues.
Consider an Outsourcing System
The next distribution center management stage that the company needs to implement is by working with partners or third parties when demand is high. Third parties can use the SaaS (Software as a Service) system or work directly in your company in a certain period to help with existing resources.
If you decide to work with a third party or partner, make sure you provide the right understanding and training about your facilities. Furthermore, the right training can provide benefits for your company, which can reduce production delays due to lack of knowledge on how to operate the machine and how to use the system.
Focus on Visibility and Lean Manufacturing practices
Manufacturing companies need visibility such as asset tracking, data collection, analysis, applications used in the company. Implementing distribution center management can increase warehouse visibility and can practice lean manufacturing optimally.
You should apply the warehouse operating budget and comply with it. Because maintaining a budget is very important so that the production system is in line with the budget. If the budget is over, make sure you take notes to be able to see the differences and find solutions.
Well, those are 5 distribution center management that you need to implement immediately. If you want to improve supply chain process, you should look for strategic industrial location because it is close to transportation routes.
One of the industrial areas that have a strategic location is Karawang New Industry City (KNIC). Located close to the capital city of Jakarta and has plenty of transportation access, make KNIC a suitable area for warehouse building and renting.
In addition, KNIC has 6 national infrastructure access such as the Jakarta-Cikampek toll road, Jabodetabek LRT, Trans Java lines, Jakarta-Bandung Railway, Kertajati International Airport, and Patimban port. KNIC is also supported by facilities such as premium electricity, natural gas, and fast internet connections to support the performance of manufacturing companies.