Why You Need Allocation Rules

Have your warehouse personnel ever complained about being sent to a bin location only to find the location empty? If so, your ERP system isn’t set up with proper allocation rules to determine which bin location to search after your employees come up empty-handed. Or, worse, it doesn’t support entering multiple bin locations at all. 

Missing Inventory

When you have hundreds or hundreds of thousands of items in your distribution center and your warehouse workers must search for missing items, you lose productivity and risk frustrating your employees, which can make it difficult to retain employees and have a negative effect on your company’s bottom line.  

Distribution Challenges

According to recent Sage research, distributors identify their top five technology challenges as:

1. Integrating new technology with legacy systems to have a single view of the business.
2. Using mobile technology to make sales and customer service more efficient.
3. Optimizing inventory management and demand forecasting.
4. Leveraging customer relationship management to manage new sales opportunities.
5. Rapidly analyzing/connecting business insights to drive decision-making.

The Technology Difference

The top distributors understand that investing in technology to address their challenges makes a difference – and they see big results.

With allocation rules in place, you can have procedures for your warehouse personnel to follow if they’re sent to a bin location that’s empty, improving productivity and your company’s bottom line. If your current system doesn’t enable multiple locations, feel free to contact us today.