Australian companies that expanded their operations into the e-commerce trade should use a custom warehousing inventory system, especially since online retail will have a bigger role in retail sales.
By 2021, e-commerce will account for 11 per cent of all retail transactions based on a CBRE forecast. This already led to a dearth in the supply of industrial space for rent, so managing your inventories would be important to maximize the space that you are leasing now.
An inventory system helps you organise the products from the moment they arrive up to their delivery schedule. It also helps you track stored items whether they are in stillage cases or shelves. An organised system means that you save precious time. It allows your business to score good reviews from customers.
Prompt deliveries are on top of retailers’ minds right now due to a strong demand for the so-called last-mile deliveries, particularly in big cities, such as Melbourne and Sydney. More companies want to rent warehouses near inner or mid-ring precincts, and this causes the available space to dwindle in recent years.
Colliers said that in 2016, online retail only occupied six per cent of industrial space in western Sydney. The rise of e-commerce has now increased its occupancy to 27 per cent of around 150,000 square metres of commercial space in the region.
A similar trend happens in Melbourne, where 50,000 square metres have been rented out within the last two months. Some companies are also in discussions to lease 40,000 square metres more. The scarce supply of warehouses in both cities means that e-commerce companies stand to lose business if they are unable to manage their growing stockpile of last-mile inventories.
When choosing a warehouse inventory system, you should consider asking for advice from suppliers who aim to make it easy for their customers.