Sumit Potbhare: Efficient Storage in Retail Warehousing | Approach to D365 for Commerce with Adv WH Mgmt
Hi guys, In this blog we are going to understand a key aspect of Retail Warehousing which is Storage. As we know Omni-channel is the key to the future of retail. It gives customers the best of traditional shopping. The strategies for Omni-channel is different because they emphasis more on the distribution centers and stores for e-commerce fulfillment. Regardless of which is primary in fulfilling e-commerce orders, the definition of the warehouse is changing.
Companies that sell entirely online are also shifting strategy, responding to consumer desire for more flexible shopping options. Many of those changes will affect the way retailers manage their supply chains. For distribution professionals, there are a number of implications—including the need to treat stores like part of their warehouse network. In all these Storage plays a vital role for the fulfillment of these Retail orders.
Retail warehousing is complex and, to some degree, leverages a lot of unique functionality in D365 F&O Warehouse Management. There are a series of issues in this industry that make it really different, and you need to understand those before you approach a retail prospect or before you certainly start an implementation project.Let’s look at the Storage in Retail Warehousing.
In a Retail warehouse, storage requirements may drive you to use some rather obscure functionality in D365 F&O Warehouse Management. In most of the Retail Warehouses, there’s no pallets but cases on a shelf. The reason is Retail, unlike manufacturing or wholesale, orders lots and lots of products in very small quantities. So they generally don’t have a full pallet of any given product that they happen to sell. Most of the things that they order, only get a case or two at a time, so they put it up on shelves.
Now, you may be wondering, you know, why does that make retail unique? Why is it that having cases on a shelf as opposed to, say, pallets, means that there’s some additional requirements that the software has to provide to service retailers versus some other vertical?
To really understand why case storage in retail makes retail that much different, you really have to get close and look at this label, which at first looks really quite ordinary. There’s nothing really different about this label, perhaps, than a label you might see on a pallet or any other kind of merchandise in a warehouse until you get into it in detail. Because you see that it has a bar code there for the product. It’s got a bar code for the quantity.
You can even have a bar code for the PO and the shipping address. But what really makes this box special is the case license plate (highlighted yellow). This is a unique identifier for this box. Every single box in a Retail warehouse has its own license plate. And you might be wondering, well, why do we have to have a unique license plate on every single box in a Retail warehouse where you don’t need that, say, in manufacturing and so forth. Well, the reason is because in Retail warehouse, you can’t count on consistent case quantities. You see this box has 12 units of this particular item in it. But the next time this product arrives and is shipped into this warehouse, it might have 15 or 10.
Because of these reasons selecting the right Warehouse management system becomes extremely important so that you can maximize the use of your inventory storage in an optimized and efficient manner. And here is where D365 F&O fills the Gap of being the right WMS solution for the Retailers. D365 for Commerce and Advance Warehouse management goes hand in hand to provide the best solution for Retail warehousing.
I hope this blog helps you in some or the other way in this Retail Journey.
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