Proper management of seasonal stock in the warehouse is key to efficient logistics. The goal is for the company to be able to fulfill orders in the high season.

In a scenario where e-commerce promotes product seasonality and the proliferation of SKUs in the warehouse, digitizing inventory management is an effective solution to absorb peaks in demand and adapt to seasonal changes.

What is seasonal stock?

Seasonal stock is stock that experiences increased turnover at certain times of the year, i.e., it is sold at a higher rate during certain periods. This type of stock is characterized by seasonal demand, so the warehouse must have flexible supply logistics that allow for increasing or decreasing the quantity and location of products depending on the season.

To achieve efficient management of seasonal stock, the logistics manager must consider factors such as:

• Duration of the seasons: identification of periods of high demand and off-peak times, as well as how long they last or how they alternate. Knowledge of product demand is a decisive factor in good stock control.

• Supply lead time: seasonal stock management must also consider product supply policies. Periodic analysis of the demand for each item makes it possible to develop procurement strategies that improve the company’s logistics.

Based on these factors, logistics managers identify the turnover of each SKU and design and implement logistics strategies that enhance warehouse performance. For example, techniques such as chaotic binning or flexible slotting can be used to ensure that the products with the highest turnover are located in the most accessible locations for the operators.

Strategies to control seasonal stock

To control seasonal stock, it is necessary to analyze the characteristics of the stored references, as well as the seasonality of demand. Implementing strategies that make it possible to forecast product demand facilitates seasonal stock management: the warehouse can replenish itself with the right amount of merchandise to meet customer orders without incurring storage cost overruns.

Based on knowledge of stock status and demand, the logistics manager must design a strategy that enhances accessibility to the fastest-moving SKUs. However, the seasonality of products requires a flexible logistics structure, which is capable of scaling resources in the high season and adapting needs when product demand is reduced.

In warehouses with a high percentage of seasonal stock, a very effective logistics (and production) method is just-in-time. This strategy is based on the premise that the warehouse receives raw materials or products only when orders are placed. In other words, the company has the exact quantity of references at the right time to meet the demand for products.

Another efficient strategy for managing seasonal stock is on-demand warehousing, which consists of outsourcing operations such as receiving, warehousing, or order preparation to a logistics service provider for a specific period of time.

Implement seasonal stock in your operations

The consolidation of e-commerce has increased the complexity of logistics operations, especially for companies that sell products with high seasonality. In this scenario, efficient inventory control is essential to ensure optimal stock levels.

There are multiple strategies that favor seasonal stock management, such as just-in-time logistics methods or on-demand warehousing. However, seasonal inventory control involves digitizing operations, and Xborder will aid you in the whole process.
With over ten years of experience, Xborder offers a range of technology services that have been specially designed to facilitate any e-commerce operations. We can provide you with up-to-date technology-oriented solutions by combining development services, integrations, and security. For further information, please visit www.xborder.co.

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Talking about logistics involves many related concepts that may cause confusion. In this article, we will explain the differences between international logistics and international physical distribution and when each one should be used. 

International logistics

This concept is defined as the set of operations needed to transport raw materials or goods from one country to another. The country of origin is called the exporter and the country of arrival is called the importer. It focuses on the product being transported to a specific point in the shortest possible time and with low costs. Logistics can be classified under the following headings:

Inbound: In this phase, the goods are prepared for export, and the inputs needed to transport the products are acquired. 

Internal logistics:  This is the ready-to-be-shipped phase of the goods or service to be exported. It refers to the set of material and information flows produced by the company, such as warehouse movements and stock control. 

Reverse logistics: Addresses issues subsequent to the shipment of the goods, such as after-sales service and warranty management, receipt of claims, returns, and processes that add value to the exported product.

Exit: When the product is ready, preparations should be made for its next distribution. Logistics contemplates the actions to verify quality, prepare the packaging and finally dispatch the goods.

International physical distribution

International logistics focuses on the product being transported and distributed while international physical distribution focuses on the points of agreement between buyer and seller. International physical distribution has some characteristics that we mention below: 

Description of the cargo: Here you should define the dimensions and the most important data of the goods. 

Product values: Define the costs of the goods and also take into account the price to move the goods from the production center, customs procedures, taxes, among others. 

Packaging: It must be adapted to the needs of the merchandise, for which boxes, bags, containers, or other storage methods can be used. 

Delivery times: The exporter and the importer will agree on the times for the merchandise to arrive at the final destination and the inventories can be managed correctly.

International Trade Leader

Xborder solely exists to assist your e-commerce in its growing path, taking care of services such as import and export logistics, legal procedures, customer service, and technological tools that improve online quality. Delegating tasks to professionals is an excellent way for your business to mature.

To know more about all the different services offered, visit xborder.co

The post Difference between logistics and international physical distribution appeared first on Xborder.

The concept of slotting is frequently used when we talk about logistics. In this article, we will talk about this process, which has great benefits for the supply chain by efficiently using warehouse space and reducing operating costs. 

Before explaining the benefits of slotting in logistics operations, we must define what it is. Slotting is the name given to the intelligent arrangement of items in a warehouse, characterized by the proper classification that complies with aspects such as rotation, profitability, and costs. 

Among the main objectives of slotting are: to fully utilize the available storage space while handling items as little as possible; to reduce operator movements; to store compatible products together, and to improve the use of human resources and receiving equipment to reduce operating costs. 

By intelligently ordering products in a warehouse, the distribution center achieves a higher level of competitiveness and efficiency than other warehouses or models that do not use the slotting procedure.

To implement slotting it is necessary to make structural changes and redesign the warehouse location strategy, for which certain criteria can be taken into account such as product turnover rate, expiration date, demand, merchandise flows, and optimal picking routes. 

Picking is also a fundamental part of the slotting strategy since it is in charge of receiving confirmed orders, selecting and picking the items that complement the order, packing the items, and finally scheduling the shipment. 

The approach to picking and slotting is fundamental to its execution, which is why companies that want to implement intelligent storage in their warehouses must rely on a warehouse management system that is based on the needs of the company and the requirements of the items to be stored.  

The automation of warehouses helps strategies such as slotting maximize their efficiency, in addition to significantly reducing the time of movements and better managing information. If you want to implement strategies that make your business grow and improve your company’s distribution and supply processes, we give you the following recommendation. 

Expand your market to Latin America and increase your e-commerce sales

Opening the doors to trade in Latin America is a big step for e-commerce. To help you in the process is Xborder, an international trade solutions provider with more than 10 years of experience.

Xborder offers a series of services that give all the necessary tools to your e-commerce to cross borders. The services offered by Xborder range from import and export logistics, legal procedures, customer service, and technological tools that improve the quality of your online store. 

To learn more about all the services offered by this leader in international trade, visit xborder.co

The post The 5 steps of order processing appeared first on Xborder.

The concept of slotting is frequently used when we talk about logistics. In this article, we will talk about this process, which has great benefits for the supply chain by efficiently using warehouse space and reducing operating costs. 

Before explaining the benefits of slotting in logistics operations, we must define what it is. Slotting is the name given to the intelligent arrangement of items in a warehouse, characterized by the proper classification that complies with aspects such as rotation, profitability, and costs. 

Among the main objectives of slotting are: to fully utilize the available storage space while handling items as little as possible; to reduce operator movements; to store compatible products together, and to improve the use of human resources and receiving equipment to reduce operating costs. 

By intelligently ordering products in a warehouse, the distribution center achieves a higher level of competitiveness and efficiency than other warehouses or models that do not use the slotting procedure.

To implement slotting it is necessary to make structural changes and redesign the warehouse location strategy, for which certain criteria can be taken into account such as product turnover rate, expiration date, demand, merchandise flows, and optimal picking routes. 

Picking is also a fundamental part of the slotting strategy since it is in charge of receiving confirmed orders, selecting and picking the items that complement the order, packing the items, and finally scheduling the shipment. 

The approach to picking and slotting is fundamental to its execution, which is why companies that want to implement intelligent storage in their warehouses must rely on a warehouse management system that is based on the needs of the company and the requirements of the items to be stored.  

The automation of warehouses helps strategies such as slotting maximize their efficiency, in addition to significantly reducing the time of movements and better managing information. If you want to implement strategies that make your business grow and improve your company’s distribution and supply processes, we give you the following recommendation. 

Expand your market to Latin America and increase your e-commerce sales

Opening the doors to trade in Latin America is a big step for e-commerce. To help you in the process is Xborder, an international trade solutions provider with more than 10 years of experience.

Xborder offers a series of services that give all the necessary tools to your e-commerce to cross borders. The services offered by Xborder range from import and export logistics, legal procedures, customer service, and technological tools that improve the quality of your online store. 

To learn more about all the services offered by this leader in international trade, visit xborder.co

The post What is slotting in logistics appeared first on Xborder.