In Nineyard, managing inventory can be done in two ways: without using 'Bins and Locations' or with the feature activated. Here’s a breakdown of how both methods work and the key differences between them, particularly with respect to both FBM and FBA processes.
Inventory Management Without 'Bins and Locations'
Basic Tracking: When managing inventory without 'Bins and Locations,' your inventory is tracked at a general level. This means that all items are simply counted and managed as a whole, without assigning them to specific areas or locations within your warehouse.
FBM Orders: For FBM orders, automatic deductions happen as soon as an order is placed if the setting is turned on at the integration level and for every marketplace integration. This reduces your total inventory count without needing to manually update the stock after fulfillment.
FBA Shipments: When preparing an FBA shipment, deductions from your inventory are usually done via a simple "deduct" button, and the process doesn’t require physically picking the items. This is quicker but offers less control over exact stock location accuracy.TV
No Location Tracking: You won’t be able to assign items to specific shelves, bins, or areas in your warehouse. While this works fine for smaller or less complex inventory, it can lead to confusion and slower picking times in larger operations.
Inventory Management With 'Bins and Locations'
When you activate the 'Bins and Locations' feature, the way inventory is managed changes significantly, allowing for more detailed tracking and control. Here’s how it affects both FBM and FBA processes:
Detailed Location Tracking: Each item in your inventory can be assigned to a specific bin or location in your warehouse. This makes it easier to know exactly where products are stored, streamlining the picking process for both FBA and FBM orders.
Manual Picking for FBM Orders: With 'Bins and Locations,' automatic deductions for FBM orders are turned off. Now, when an FBM order is placed, the items must be manually picked from their assigned bins. This ensures greater accuracy but requires more attention to detail.
FBA Shipments: The biggest difference in the FBA process is that deductions for FBA shipments will no longer happen with a simple button click. Instead, the items must be physically picked from their designated bins and locations, which requires more effort but ensures a higher degree of accuracy. Each FBA shipment now follows four main steps:
Pick: The warehouse worker physically picks the items from their assigned bins or locations.
Prep: Products are bundled or packed into SKUs (such as multi-packs or bundles).
Pack: The SKUs are packed into boxes and labeled for shipment.
Ship: Shipping is purchased, and the items are sent to Amazon’s fulfillment centers.
Using Wagons for Picking (FBM Orders): To assist with picking, you can use the "wagon" feature. You can set up wagons with multiple bins and assign orders to each bin. The system will allow you to add as many orders to the wagon as there are bins, which helps organize the picking process more efficiently.
Improved Inventory Accuracy: Since each item has a specific location, inventory discrepancies are easier to spot and correct. This is especially useful for larger inventories or warehouses with a high volume of orders.
Implications for Workflow:
Without Bins and Locations:
FBM Orders: Automatic inventory deductions happen with each order, and the picking process doesn’t involve specific bin tracking.
FBA Shipments: Deductions for shipments happen automatically using a button, and the process does not involve physically tracking stock locations.
While this method is faster, it offers less precision in inventory control.
With Bins and Locations:
FBM Orders: Orders require manual picking from specific bins, increasing accuracy.
FBA Shipments: Shipments require physically picking items from their locations, resulting in more precise control over inventory.
Although this process takes more time, it helps prevent mistakes and ensures that each item is properly tracked.
Key Implications of Switching to 'Bins and Locations':
Manual Process for FBM Orders: Every FBM order will require manual picking from the warehouse, which gives better control but removes automatic deductions.
Manual Process for FBA Shipments: Deductions for FBA shipments will now require physically picking the items, rather than using a simple "deduct" button.
Location Awareness: You’ll always know where each item is stored, which helps prevent stock confusion and speeds up order fulfillment.
More Efficient Picking: Using the "wagon" feature, you can organize the picking process based on the number of bins, allowing for streamlined and organized order fulfillment.
For more details on the technical setup and use of the 'Bins and Locations' feature, click here to read the full technical guide