Warehousing logistics and port drayage management are critical for smooth shipping and transportation services. Transportation capacity challenges have caused many companies to struggle with securing enough truck, ship, and aircraft space to accommodate higher consumer demand. According to GlobeNewswire, transportation and warehouse capacity likely will stay in high demand as e-commerce trends continue to drive market capacity. This tight capacity is expected to keep warehousing utilization and prices high until a way to increase capacity and availability emerges. This causes backlogs and warehousing logistic nightmares as inventory loads sit waiting to be shipped. Managing goods and organizing inventory should not cause stress, and 2022 doesn't have to go the same way as 2020 and 2021. Let’s consider why and how technology and the right partner for drayage, warehousing, and truckload brokerage can boost overall logistics optimization for 2022.
Just In Time Inventory Management Systems
Warehousing inventory management relies on a straightforward and easy-to-follow management system to track loads, orders, shipments, and stock. Just In Time (JIT) refers to a form of inventory management that works closely with inventory manufacturers and suppliers, so materials and goods arrive as production and shipment schedules require, but no sooner. The goal of the JIT inventory management system focuses on getting the minimum amount of inventory on hand to meet demand. Rather than stressing warehouses and inventory logistics with a lot of excess products, only what is needed for current and short-term projected demand will be on hand at any given time. This approach has proved particularly beneficial with the rising popularity of e-commerce shipping demands. The benefits of JIT come quickly, provided the inventory management systems have a proven, reliable supply chain and accurate demand projection processes in place.
Utilizing Automated Real-Time Inventory Management
Real-time inventory management focuses on the network's adaptability to record sales and inventory purchases as orders are placed to ensure on-time fulfillment without excessive warehouse backlogs. This innovative approach to warehousing and inventory management gets achieved through the use of software focused on identifying low and peak shipping indicators. Rather than periodically updating inventory at scheduled intervals such as the end of the day or weekly, real-time systems record every transaction of inventory coming in and going out as it occurs. Inventory totals update automatically, and new orders are placed automatically to ensure they get filled on time. A common indicator of poor inventory visibility in inventory management occurs when estimated inventory levels do not match what is currently shown as available on the shelves. This automated real-time inventory management process helps address issues of poor transparency and visibility within the warehouse system.
Predictive Planning and Market Trend Forecasts
Strong and effective warehousing management often relies on predictive planning and market trend forecasting to prepare for seasonal highs and lows and other changes to consumer habits and market volatility. An accurate inventory forecast proves invaluable, especially in times of rapid fluctuations and instability. Essential data elements are at the heart of effective inventory forecasting for the modern warehouse management team. These data elements can include: current inventory levels, maximum possible stock levels, outstanding purchase orders, historical trend lines, expected seasonal shifts, consumer buying habits, annual sales trends, and present products and trends favored by consumers. Planning and watching for patterns can help warehouse management teams and logistics administrators better prepare for what lies ahead.
Overcome Warehousing Issues and Capacity Disruptions With the Collaborative Services of Port City Logistics
Port traffic has seen dramatic increases throughout the past year and a half, especially in the last half of 2020 and the beginning of 2021. Preparing for what lies ahead is critical for overcoming warehouse logistics and inventory capacity issues. Inventory and warehousing management often come down to how effectively team members can recognize and respond to shifts in trends and demands that impact inventory management. Overcome these disruptions with intuitive and tech-supported services built on collaboration and real-time data. Contact Port City Logistics today to learn more.