Effective inventory management is a quick win in saving on costs and mitigating other supply issues. So why are so many organisations neglecting this business area when it comes to digital transformation?

In this blog we look at how leveraging a wider set of EDI messages, systems integrations and advanced reporting leads to more agile warehouse management.

Agile Supply Chain

Our report, Agile Supply Chain, covers three client case studies demonstrating the areas where businesses can create greater efficiency and responsiveness.

Transalis report mockup titled Agile Supply Chain

The need for agile inventory management

The struggles for the retail industry in recent years, particularly in the High Street, have greatly impacted business strategy. As a result, many retail businesses have increased their focus on eCommerce, including dropship. However, a multitude of global events has left many established and reliable supply chains in tatters. Product shortages and logistical issues made it extremely difficult for businesses to meet the ever-growing consumer demand for speedy delivery.

Gartner’s latest supply chain report highlighted a recent business trend in response to these supply chain issues.

The report detailed that businesses are now holding more stock to mitigate any potential supply chain disruptions.

Whilst this approach is seemingly a simple way for businesses to overcome unforeseen supply chain blockages, practically speaking, it can be difficult to navigate. Organisations implementing this strategy will need effective forward planning and inventory management as they hold more stock. In addition, they will also need to find the balance between holding more stock and the associated increase in warehousing costs.

Digital transformation for agile inventory movement

EDI is much more than just exchanging orders and invoices. When used optimally, EDI has the ability to digitally transform the entire supply chain. This has resulted in greater agility, visibility and cost control for our clients.

At Transalis, we provide solutions which leverage EDI technology to automate the distribution of inventory data across the supply chain. EDI offers the platform to exchange and distribute inventory data across information silos in the supply chain, leading to more effective decision-making. This information enables our clients to better predict product demand when also combined with sales reporting. This approach, therefore, enables an agile stock management process and minimises cost exposure.

The infographic below demonstrates how harnessing an integrated EDI solution allows for greater business insight. In this situation, sales and stock level information is communicated between the warehouse and office systems, which is then automatically assessed and stock redistribution messages are sent to the warehouse network. Ultimately, this facilitates agile inventory movement between local warehouses that have better proximity to consumer demand. An EDI solution such as this example, balances the need to hold more stock with the optimised use of warehouse space and, in turn, manages costs.

Agile inventory management process flow

Agile warehousing in practice

Our client was struggling with the inefficient management of their warehousing and Third-Party Logistics (3PL) operation. This particular client was relying on the manual input and rekeying of inventory data between their ERP and warehousing systems. This was not a sustainable approach to the management of this data. It also did not allow for agile inventory movement. So, to tackle this issue they looked for an EDI solution that would digitally process order confirmations from their customers.

The solution that Transalis provided went several steps further than the initial requirement;

Firstly, the implemented solution allowed the client to automate their dispatch processes. Using an integrated EDI solution meant that the processing and communication of digitised information between business systems was entirely automated. Thus, the need for manual rekeying of data was completely removed.

In addition, the solution also provided a higher frequency of stock level reporting. Therefore, the client was also able to better understand product demand and review where stock was held. This allowed for responsive and agile inventory movement, as well as the optimised utilisation of warehouse space.

Transalis solutions for agile inventory management

eDI Freedom allows you to configure a solution which meets your exact business needs. Get started by building out your perfect solution using our helpful calculator.


eDI Solutions

Read the full report: Agile Supply Chain for more insight into how digital transformation of processes supports future-proof business strategies. You can also contact our team for tailored advice: 0845 123 3746 (UK callers) or +44 1978 369 343 (international callers), or via email on sales@transalis.com.


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