What is a Locator system in E-commerce?
The locator system in the warehouse provides accuracy in holding a record of items that go through the shipment process. Implementing a locator system allows an enhancement of the ability to handle inventory. Companies can utilize four common locator systems for inventory management – memory, fixed, zoning and random locator systems.
Significance of Locator System in E-commerce
The locator system helps locate inventory in times of need by maintaining an error-free inventory count over time. Some of the benefits of the locator system are mentioned below:
- A suitable locator system makes storage and inventory search flexible and convenient.
- It helps in mapping out the warehouse with assigned areas for certain inventory.
- The warehouse is kept organized by accommodating the goods in their specified location.
Prerequisites for Locator System and How It Works
Here are the prerequisites for a locator system:
- Availability of storage in warehouse
- Current number of inventory available
- Number of items to be stored or picked up for delivery
- Data entry
Use Case with Locator System
A locator system is useful for large-scale e-commerce businesses which store inventory in larger warehouses. Suppose Company XYZ sells mobile phones and has inventory stored in a warehouse. Once they receive an order, they have to assemble the order stored at different zones of the warehouse. Here, company XYZ can use a locator system to locate the inventory, pack it, and process it for shipping. A locator system keeps a timely record of inventory throughout the shipment process.