It is pretty tiring how loading and unloading products into trucks can become. An inventory management strategy in which warehouses extend their storage unit to trailers is called rolling inventory. Instead of unloading and loading products repeatedly, the trailer is loaded with goods and parked in a warehouse yard for scheduled delivery.
These products are categorized accordingly, and semi-full trucks are parked as extended warehouses. If semi-filled trailers are out for delivery, it affects productivity and cash flow.
In this article, we will discuss how rolling inventories help reduce costs, including product sorting, storage, and warehouse spaces.
Rolling Inventory Meaning
Rolling inventory is an inventory management system in which goods reach warehouses in trailers and are parked in a warehouse yard for scheduled delivery. It reduces storage costs and labor costs. It helps warehouse managers to sort products in multiple trailers and arrange them for faster shipment.
Rolling inventory is more than just parked trailers with goods. It also reduces labor in loading unloading, and arranging products on warehouse shelves. This measure not only reduces the chances of theft but also reduces product damage and handling costs.
Key Takeaways
- Rolling inventory is handled using ready-to-go, partial trucks, and total trucks.
- Rolling inventory is a flexible strategy to reduce labor and handling costs by efficiently keeping goods as they arrive.
- Inventory management helps businesses to maintain good relationships with customers and suppliers.
- Inventory management that manages roll inventory saves time and money and helps managers maintain warehouse operations and space.
Rolling Inventory Explained
Roll Inventory is a warehousing strategy to keep goods in parked trucks or trailers. It eliminates the need to handle, sort, load, or unload goods into a warehouse and repeat to ship them. It is a small investment strategy and can work with the present infrastructure at any warehouse.
Rolling Inventory is possible with the help of inventory and warehousing management systems. It maintains positive cash flow and saves products from theft, mishandling, or spoilage. With detailed information and real-time automated tracking, managers can predict the right action about products, incoming or outgoing.
Rolling Inventory Policies
Rolling Inventory policies are not mutually exclusive, but a company can choose any of these to decide the most suitable approach for shipment. It depends on how the company manages the goods, when the truck arrives, and when the car is scheduled for shipment.
1. Full Truck Policy
In this policy quickly stores the truck in the yard with its original contents. When the trucks are ready for shipment, workers only unload products, not in the next delivery.
2. Ready to Go Policy
In this policy, workers unload products for trucks not part of the following order and load all the products needed from warehouses. The trailer is stored and then sent for shipment.
3. Partial Truck Policy
In this policy, trucks are arranged in half-filled condition and stored till all the products are filled to be shipped. The trucks are parked longer until orders are ready for shipment.
Benefits of Rolling Inventory
There are many benefits linked with inventory roll forward. Some of these benefits are:
- Less handling costs of products
- Fewer storage costs
- Less time to load and unload products
- Saves Warehouse space
- Less labor for inventory management
- Cost-effective and time-saving approach
Types of Businesses Use Rolling Inventory Management
Warehouse-centric businesses that deliver distributors, retailers, and wholesalers are the businesses that use rolling inventory. Some high-volume distributors use this type of inventory as an alternative to warehouses.
In the end, the fast processing and shipment of goods at warehouses can help businesses increase profits by saving time and money. With the correct inventory management, companies can manage trucks and trailers at warehouse yards and ship goods quickly to increase the speed of the supply chain..
Rolling Inventory Management With TranZact
TranZact helps businesses with inventory management and warehouse management software that keeps inventory track and helps make shipments less expensive. Companies can manage goods better with detailed information about products and their shipment schedule.
Rolling inventory can help businesses to reduce labor, storage, and handling costs. The minimum load or unload also protects goods from wear and tear. Enhance your business and experience the proper management procedure for business with TranZact.
FAQs on Rolling Inventory
1. What is inventory roll forward?
Inventory roll forward is a process of taking pictures at an interval, like after the accounting period, to track the progress of each inventory product.
2. What is rolling stock inventory?
Rolling stock inventory is the stock that is kept in the trucks when it arrives at the warehouse rather than unloading and storing them.
3. What is logistics inventory?
Logistics inventory is an essential part of supply chain management. It controls and supervises customer purchases to collect demand, stock storage, and order fulfillment data.
4. What is the rule of inventory?
The rule is the 80/20 rule of inventory management. According to this rule, 80% of profit must come from 20% of inventory. According to the Pareto Principle, 80% effects are the result of 20% causes.
5. Which methods are used to track inventory?
Methods used to track inventory include a constant method and a periodic method. In the constant process, inventory is tracked in real-time, while in the regular strategy, inventory is tracked at regular intervals.
7. What is the best way to manage inventory?
The best way to manage inventory depends mostly on companies' needs. Businesses with high-volume sales use software for inventory management and warehouse management. But for small-volume distributors, manual inventory management is suitable.
8. What is the inventory buffer?
Inventory buffer is the additional inventory the business keeps for emergency shipment during sudden market demands or transportation delays. It takes up extra space in warehouses and has a limited shelf life.
