To ensure that sales orders can be fulfilled correctly in a multi-warehouse setup, what must be managed effectively?

Managing inventory levels effectively is crucial in a multi-warehouse setup to ensure that sales orders can be fulfilled correctly. This involves maintaining accurate records of stock available across different warehouses, which helps in determining the best location from which to ship products to customers. Effective inventory management ensures that there is enough stock to meet demand, minimizes the risk of stockouts, and enables prompt order fulfillment.

Furthermore, having a clear view of inventory levels allows businesses to optimize their supply chain operations, streamline order processing, and reduce unnecessary costs associated with overstocking or expedited shipping. This is particularly important in a multi-warehouse environment where different locations may have varying stock levels and these must be coordinated to effectively meet order requirements.

While the product catalog, sales taxes, and shipping methods are also important aspects of the sales order process, they do not directly influence the capacity to fulfill orders across multiple warehouses. The product catalog ensures the correct items are listed for sale, sales taxes are related to compliance and revenue, and shipping methods pertain to logistics; however, without effectively managed inventory levels, even the best processes in these areas can lead to fulfillment issues.