Get to know the vital terms of Logistics and Supply Chain Management.
Active stock is the stock that is immediately available for order fulfillment and is normally positioned in the most reachable stock-picking zones of the storage facility. This stock always and always can supply customers’ demand and to organized in a way that is easy to pick and pack.
Features of Active Stock:
Readily Available: There is also what can be referred to as active stock, this is stock that can be shipped out at any one time as they are always in stock. This guarantees the ability of the organization to meet ordered products without failure, thereby reducing delivery time and enhancing customer satisfaction.
Stored in Active Pick Locations: This type of stock is usually located in strategically selected geographical positions within the warehouse for easy access by the members of the warehouse staff. These depots are designed to provide efficiency in such ways as ease in the selection of products to be picked, packed, and shipped.
Supports Efficient Order Fulfillment: When companies keep an active stock in these areas, it is easier to address orders with speeds that customers appreciate. This has a positive implication in that it cuts down the time taken to process the orders, thereby decreasing lead times.
Importance of Active Stock
Improves Customer Satisfaction: This way, interest or high-click products can always be available to be shipped immediately, thus satisfying customers and building their trust.
Reduces Downtime: This increases the odds of order delays since active stocks are most likely to experience out-of-stock situations. This assists in sustaining the continuity of operations.
Enhances Warehouse Efficiency: It plays an important role in arranging the items in the warehouse in the most compact way possible. It makes sure that products that are regularly run out are located where they will be most easy to pick, thus accelerating the picking process.
Conclusion
One method of maintaining efficient and effective order fulfillment is through using Active stock. inventory management can also ensure that if customers place an order, the inventory to be submitted to them is easily identifiable, and therefore companies can deliver in a short time even reduce the lead time of delivery, or even improve the operations of the company. This not only enhances customers’ satisfaction levels but also assists in retaining its competitive position within the market as well.