Whether small or giant, the lifeline the lifeline for any online company is its inventory. If there is no inventory there is no point in having a store or being a retailer!
So simple and apparent, we all understand the importance of managing inventory as it enables to address two critical issues:
- The enterprise has to store adequate inventory for smooth production and selling activities.
- It has to minimize the investment in inventory to enhance firm’s profitability.
Below are 5 awesome and useful ways that you can take advantage of these to improve your inventory management!
1. Establish schedule in advance
The answer to all inventory issues comes with anticipation and planning. Ask a woman who runs a household and she will tell you this is no rocket science. You just need to understand the demand and the supply matrix and maintain the inventory level at the point that demand and supply intersect.
While sales information is useful data to begin with, make sure to check the stocking data, and segment operating inventory into reporting levels of safety, replenishment and excess or obsolete stock.
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2. Do remember to frequently check and change if necessary.
Supply-savvy operations update their calculations about every three to six months to ensure the accuracy of the decisions.
Be ready to change rules when required. Bringing in flexibility to a business is a boon. For example, on seeing the Xiaomi sales- suppy & demand; Flipkart could have changed their stocking levels for forthcoming sales.
Related post: 8 Great Ecommerce Inventory Tips.
3. Cross functionality can work wonders
Inventory Management may be one man’s responsibility but it is a multi-functional discipline, which means a lot of teams are involved. The supply chain band, the marketing team, the promotions crew and many more are involved to make it a success. However this also means that the coordination among these teams is very important and is easily susceptible to chaos.
A suggested approach would be to set up a cross functional team, which has a representative from each of the different functional units to stay in loop of the updates and bring in direction towards inventory management
4. Maintain consistency in multiple market places
It is important that you don’t accidentally sell the same product to more than one customer. Hence it is always advisable to keep a clear and consistent stocking system for multiple marketplaces like Flipkart, Amazon, Snapdeal etc…
It is also important to ensure consistent levels of stocking in warehouses, workshops and consignment locations at various places.
Related post: Best Laptop Inventory Management.
5. Make life easy by take advantage of an appropriate technology
With the booming of ecommerce , there are many enterprise management programs that have developed too. There are various inventory managements systems available but you should opt for one which is customizable and fits your after looking into top considerations when looking for an ecommerce Inventory Management System.
Recommended services by Magento offers comprehensive modern software for online sellers that not only takes care of all inventory management needs across multiple platforms in one single place; but also supports you auto fetch orders, print shipping labels and pack orders in less than half the time it usually takes.
Conclusion: It is critical for every ecommerce website as well as business retailer to strike the thin balance in not running out of stock , also not locking too much the capital in inventory.