In the fast-paced world of fashion, effective warehouse inventory management is the backbone of a successful business. As trends evolve and consumer demands shift, fashion brands must stay ahead of the curve by implementing robust systems to track, manage, and optimise their inventory.
Warehouses offer a reliable base for businesses to do this, but it’s crucial to employ proper procedures to prevent losing track of valuable assets or misinterpreting stock levels along the way. This article explores how to manage warehouse inventory efficiently, focusing on the latest ERP solutions and strategies tailored for the fashion industry.
How to manage warehouse inventory
Warehouse inventory management covers the receiving, tracking, and managing of goods within your warehouse. If handled efficiently, warehouse management should reduce your chances of excess stock or stock outs, while still maintaining consumer demand and keeping costs low.
Though conducted in tandem with general inventory management processes, it’s important for businesses to dedicate specific focus to warehouse operations and how best to utilise them, particularly within the fashion space. Here are our top tips for how to manage warehouse inventory efficiently.
1. Implement a robust fashion ERP system
Warehouse management, like a lot of business processes, can be full of unnecessary admin and disruptive hassle if handled independently. Implementing an industry-specific solution designed for fashion inventory management can automatically optimise your supply chain and reduce the need for these manual tasks.
ERP systems ensure real-time visibility across multiple channels and locations, allowing your business to gain a complete picture of warehouse operations and inventory levels in all areas. View in-transit, available-to-sell, allocated, and sold stock at the touch of a button, while also keeping a grasp of your sales orders to predict increasing demand.
Look for systems with robust integrations with various Warehouse Management Systems (WMS) to encourage seamless data flow between your chosen warehouse and ERP. This will keep all records of stock movement up-to-date, so there is no risk of miscommunication between locations.
2. Optimise warehouse layout
Warehouse productivity can easily be optimised through an intuitive, organised layout. Ensure you’re designing efficient storage systems for each category of apparel and rotating your stock to meet demand.
Keep your bestsellers and seasonal items in easy-to-access areas, located in close proximity to packing and shipping stations. Organise the rest of your inventory into zones that reflect your product categories and selling strategies.
Utilising vertical space by installing taller storage units can also help maximise floor space, particularly if you’re dealing with smaller warehouses or frequent increases in stock. Assign clear labelling to each section to improve navigation, and try implementing colour codes to guide employees for more efficient order picking.
3. Utilise cycle counting techniques
Cycle counting has become an increasingly popular method for keeping track of important warehouse stock. Frequently calculating inventory items by section can help iron out inconsistencies and protect valuable assets to your business – such as high-value or fast-moving product offerings.
Make sure you are implementing regular, targeted counts of these items, and categorise the rest of your inventory based on value and importance throughout the selling season. A great way to do this is by utilising ABC analysis, which splits product offerings into the following provisional categories:
Category A: High-value items that represent roughly 80% of your inventory value.
Category B: Medium-value items that represent roughly 15% of your inventory value.
Category C: Low-value items that represent roughly 5% of your inventory value.
Leveraging ERP system data can also help to identify discrepancies in inventory levels. Intuitive integrations with WMS systems provide real-time, accurate stock level information without the fear of human error, reducing the risk of inaccurate stock counting amongst your most essential products.
4. Employ barcode or RFID technology
In the modern age, automation is at the root of all successfully-managed warehouses – fashion or otherwise. Implementation of RFID tags and barcode technology has become a necessity in achieving streamlined automation, allowing businesses to keep a firm grasp of their products through intuitive movement tracking and unique identification.
Using barcodes can further improve communication between ERP and WMS tools, allowing inventory management information to pass seamlessly between systems, so you’re always presented with the most up-to-date record of your stock locations.
5. Implement demand forecasting
Demand forecasting is an essential practice for fashion businesses. It involves utilising historical data from previous seasons and sales cycles to predict future demand, preparing you with the right amount of inventory to meet it.
ERP systems are useful tools for consolidating this historical data, providing you with a full picture of each season’s sales to help better inform your inventory strategy. This can then be shared with your warehouse to ensure the right amount of products are available at all the right locations prior to market.
Demand forecasting is particularly important for seasonal products (e.g. an influx of bathing suits in the summer), so make sure you’re giving your business plenty of time to rotate warehouse layouts and consolidate stock in accordance with upcoming sales orders.
6. Train warehouse staff
Develop stringent training plans for your warehouse staff on how to effectively use ERPs, warehouse management systems, or any other software you decide to implement. Make sure barcode technology is used to its full efficiency, and implement standard operating procedures so inventory levels are always tracked accurately.
To maintain productivity within your business, encourage frequent feedback from staff members on how inventory management processes can be improved around the warehouse. For example, if the current layout of your warehouse is preventing staff members from finding products quickly, they can let you know about these issues and your team can rectify them to fulfil requirements.
Effective Inventory Control: Your Brand’s Secret Weapon
Mastering how to manage warehouse inventory is essential for fashion businesses looking to thrive in today’s competitive market. By implementing a robust fashion ERP system, optimising warehouse processes, and leveraging cutting-edge technology, brands can significantly improve their inventory control and operational efficiency. Take the first step towards transforming your fashion business – explore Zedonk’s ERP software tailored for the industry and start revolutionising your inventory management today.
