Virtual Warehousing

EazyStock’s Virtual Warehousing allows users to aggregate demand of low volume products across multiple stock locations applying inventory pooling techniques. Multiple physical local warehouses in a given geographical region act together as a virtual warehouse. This technique reduces inventory levels in the supply chain while demand can be met from the region as a whole.

virtual warehousing

Control items with very sporadic demand

The functionality for defining and managing virtual warehousing provides an effective way to control items with very sporadic demand. The typical characteristics for products that are planned using virtual warehousing is that they are critical to stock somewhere in the supply chain to maintain the service level but too expensive and slow moving for stocking in several local warehouses or stock locations.

EazyStock’s Virtual Warehousing is easy to configure, enabling companies to easily define a virtual warehouse by combining two or more stock locations for efficient inventory planning, minimizing unnecessary inventory build-up.

The virtual warehouse is controlled by separate inventory parameter policies and aggregated demand is used for forecasting. The inventory policy matrix for the virtual warehouse contains the non-stock products in the local warehouses or depots that are connected to the virtual warehouse. This is an effective way to plan and manage critical items with low demand.


Benefits

  • Improve service levels in region
  • Decrease safety stock levels
  • Cost-effective planning of parts with sporadic demand
  • Minimize backorders
  • Reduce delivery lead times

Features

  • Flexible configuration of virtual warehousing
  • Separate inventory policy for virtual warehouse

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