At a time when logistics is facing pressure for speed, accuracy and sustainability, it turns out that the biggest problem is not empty shelves – but overcrowded ones. According to Lubomír Veselý, CEO of GRiT, full warehouses are not a sign of efficiency, but a lack of trust and information in the supply chain. The solution is not a bigger warehouse, but better communication and data management.
Logistics is often considered the engine of the entire supply chain – without a smooth flow of goods, information and capital, even the best-run business will grind to a halt. Yet many companies have warehouses full of goods that are not moving.
" Many companies pre-stock out of fear that they will run out of goods. And because they have space, they prefer to fill it. But this 'just in case' tends to be expensive. It shows that communication in the chain is not working as it should ," explains Lubomír Veselý, CEO of GRiT.
According to him, it is crucial to look at warehouse management in a broader context. Effective logistics does not start with handling equipment, but with data. If a company has accurate information about what is currently being produced, shipped or delivered, it can plan with much greater accuracy.
" EDI electronic communication allows suppliers and customers to exchange data automatically. This eliminates the need for manual rewriting of orders, emails and phone calls. Everything runs accurately, quickly and reliably, " he describes.
Data instead of intuition
One example that GRiT helped implement is the cooperation with Alza. " We didn't start with invoices or orders, but with delivery notices. They wanted to have an overview of what would arrive in the warehouse, when and in what composition, " adds Veselý.
A crucial step was the addition of SSCC codes , which allow for the precise identification of what is in each package. " This will relieve warehouse workers, eliminate unnecessary unpacking of shipments, and most importantly - the warehouse will no longer have to be overcrowded just because it is not known exactly what is in it. "
A similar approach is also applied by a number of multinational companies that cooperate with GRiT. The most striking example is projects where business partners also share data on warehouse stocks. " For example, Tesco and Nestlé exchange stock reports, so that the manufacturer knows exactly how much goods are at the customer's disposal. It can then plan production better and avoid surpluses. This eliminates the pressure for sales, expirations and waste, " adds Veselý.
When capacity is created through better communication
According to Veselý, transparent communication between the links in the chain determines how efficiently the entire system works. " If the supplier can automatically confirm the order and the customer is sure that the goods will arrive at the specified time, they do not need to have reserves in the warehouse for a month in advance ," he says.
In practice, this means that EDI messages such as order response or delivery advice (DESADV) bring companies certainty and enable dynamic planning. “ When the system tells me that a delivery will arrive at 11 a.m., I can direct it straight to the outbound route. I don’t have to take it back to the warehouse, register it, and then pick it up again. That saves time, space, and energy. ”
On the warehouse management side, GRiT connects EDI with its own LOKiA WMS system, which helps companies manage the flow of goods, tracking and picking in real time - exactly where data turns into movement.
Data flowing through EDI communication becomes a management tool. Companies can accurately measure supplier reliability, evaluate OTIF (on-time, in-full) , monitor the quality of deliveries or errors in processes. And most importantly – they can make decisions based on facts, not feelings.
Less waste, more security
Veselý points out that excess inventory is not just an economic problem. It also has an impact on ESG reporting (a non-financial sustainability report that requires companies to report on their environmental, social and governance impacts) and sustainability. “ If I produce too much, I have to push it through the market. This leads to discounts, food waste or product destruction. All of this will increasingly be reflected in corporate reports and accountability statements ,” he says.
According to him, digitalization is therefore not just a question of savings, but also of responsible management. "With the help of simple but accurate data, we can create greater order, have an overview and increase the reliability of the entire chain. What used to work on intuition, today must work on facts."
At GRiT, we help companies set up communication that doesn't just deal with orders and invoices, but the entire data flow in the supply chain. According to Lubomír Veselý, this is where the greatest untapped potential lies - both for savings and growth.
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