What are the benefits of automatic replenishment system in warehouse?

Question

Vinod Jetley · Answer

Eliminates the need for weekly ordering:Auto-replenishment creates weekly purchase orders automatically. Reduces administrative costs:No data analysis, accessory inventory decisions or purchase order management. Allows you to focus on handsets: Maintain your core focus and grow your business. Keeps your store locations organized: Reduces non-selling inventory and gives you space to display what sell. Provides Flexible Reporting: Comprehensive reporting so that results can be easily measured. Simplifies entire procurement process: Minimal human intervention, maximum attention to detail.Increases your sales by having the right stock: Reduces stock outs since orders are based on customer demand forecasts and handset promotional planning. Increases your cash flow by giving you control of your inventory dollars: By combining actual sales trends with your set minimum and maximum values you control the return on investment. Increases your margin by reducing obsolete inventory:Reduce your write offs and obsolescent markdowns by managing end-of-life product inventor.

MUBARAK INAYTULLA KHAN · Answer

The main benefit is to maintain the proper stock rotation. And inventory costs and the Margin adjusted in that item. The reducing cost of labour and man power utilized in limit time to shift the material and also in logistic transfer system. Also reduce the inventory cost which will make our storage system as per our budget allocated.

Vikas Bachhuka · Answer

The main benefit is proper stock rotation.

1. Lower out-of-stocks and higher sales

2. Lower inventory costs and higher margins

3. Lower labor costs by cycle-counting

4. Shrinkage reduction

5. Store Order Leveling™ and truck-load optimization

6. Reduction of price mark-downs

7. Reduction impulse-buying of loss-leaders

Saiyid Maududi-Oracle Applications Consultant · Answer

Hello Team,

This is largely to reduce the picking times of inventory from loose unit picking locations. Pretty much always inventory is stored in large reserve locations in standard quantities. Orders may not ask for inventory in multiples of standard quantities or more than standard quantities often. For example e-commerce orders don't usually request more than 1 unit of an item of a product. In such cases, it is possible only to pick from loose unit locations unless you want to wait and combine orders to get quantities more than standard quantities. So one can utilize the lean times in the warehouse to run replenishment to loose unit areas. Combined with reasonable forecasts of product demand, this can be a powerful method to fulfill orders efficiently.

Regards,

Saiyid

Rafi Shajahan · Answer

Location of SKU's is well organised

Replenishment happen in timely manner

Increase in Margin & Sales by having right Product in right time available to customer.

Also reduces unwanted inventory lying in Warehouse.

vidya sagar burra · Answer

ADVANTAGES ARE AS FOLLOWS

KEEPS YOUR STORE LOCATIONS WELL ORGANIZED

REDUCTION IN ADMINISTRATINCOSTS

PROCUREMENT PROCESS MINIMAL

INCREASE IN THE MARGINS

WAQAR SIDDIQI · Answer

Agree with above mention answer =====================

AMAAN KHAN · Answer

Agree with experts answer _____________________________

Sathish Prabhu.V · Answer

Agree with the expert views

Ahmed Mohamed Ayesh Sarkhi · Answer

agree with all expert answers

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What are the benefits of automatic replenishment system in warehouse?

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