What Is Safety Stock?
A strategic supply management system is crucial for any business’s success. It ensures reduced operational costs, increased customer satisfaction, and steady cash flow. However, it’s not easy to main a successful execution of supply chain management. There is a need to roll the technology, processes, and people together in the right quantity, to get the right product, at the right time, to the right customer. That’s why the safety stock be used to mitigate the supply chain risks. It helps businesses stay ahead and prevent any potential stock-out situation. What is safety stock? Safety stock is the extra quantity of items held by a company to reduce the risk of being out of stock. It works as a buffer when a supplier is unable to deliver expected additional units of an item. This strategy is often used in case of stocking out caused by: Changes in consumer demand Raw materials variability in lead times Forecasting incorrect stocks Why should you use safety stock? Being out of stock during high seasons results in a negative brand image. There are two main reasons why you should ensure your safety stock: lead time uncertainty and demand uncertainty. Lead time uncertainty For companies whose products contain several components, lead time refers to the time needed to assemble pieces into a complete item. It is crucial to determine safety stock requirements and minimum inventory. For example, automobile manufacturers often experience engines and other components arrive at the factory just a few hours before the production. This delay, if not addressed well, might cause the whole system to shut down. Demand uncertainty Every manufacturer and retailer has products selling throughout the year. If the demand and supply are consistent, it does not require a large amount of safety stock. Nevertheless, there’re always seasons when the demand is higher than others. For instance, products like desk fans often experience high demands during the summer. It’s not easy to calculate the expected demands, hence, you need safety stock. Safety stock formula You can calculate the amount of stock needed by looking at the sales volume in the previous year. The formula is: Safety stock = (Maximum daily usage x maximum lead time in days) – (average daily usage x average lead time in days) For example, it takes 40 days for a retailer in New York to receive the tea sets made in Russia. The company sells nearly 15 sets a day, which can be considered the average daily usage. Meanwhile, a sale of 25 on good days can be taken as the maximum daily usage. In Russia, unfortunately, snowstorms and traffic jam result in delays up to 55 days and it may be taken as the maximum lead time in days. Taking the calculation: (25 x 55) – (15 x 40) = 775 It means 775 tea sets must be carried at all times as safety stock, particularly when the winter season is coming in Russia. Final note All in all, knowing the stock holding formula helps businesses in navigating safely through demand and fluctuations. Without safety stocks, businesses risk failing customers’ expectations, hence negatively impacting the sales revenue. However, note that this is only one solution for inventory management. You should also look at your KPI, assistant tools, identify trends and issues.
How To Start An Online Video Game Store
Starting an online video game store can be an exciting venture for gaming enthusiasts looking to turn their passion into a business. With the global video game market continuing to grow, there’s never been a better time to dive into this digital retail space. This guide will walk you through the essential steps to launch your own online video game store. Keep reading! Why Start an Online Video Game Store? Explosive Industry Growth The video game market is on track to surpass $112 billion in value by 2025, solidifying its place as a major force in entertainment. This impressive growth makes the gaming industry an attractive option for investors looking for high-potential sectors to grow their capital. Technological Advancements and Innovations The online gaming sector is a hotbed of innovation, continuously pushing technological limits to create captivating and state-of-the-art experiences. What began with live dealer games has now expanded to incorporate virtual reality (VR), augmented reality (AR), and artificial intelligence (AI) into gaming platforms. As smartphones and tablets become more advanced, the mobile gaming market presents a prime opportunity for investors. For an online video game store, these technological advancements mean offering the latest and most immersive gaming experiences to customers, ensuring they stay at the forefront of the market’s growth and innovation. Multiple Investment Options The online gaming sector presents diverse investment avenues beyond simply backing technological innovations. While investing in companies developing cutting-edge gaming tech is one strategy, it’s far from the only option available to savvy investors in this space. For example, investing in an online video game store can be a lucrative opportunity, as these stores benefit from the growing demand for new and popular games, accessories, and related services, all while capitalizing on the latest advancements in gaming technology. The Rise of Cryptocurrency as a Payment Method The online gaming industry has experienced ongoing growth because it embraces emerging trends. The industry consistently leverages the latest technological advancements to keep its users engaged and entertained. The incorporation of cryptocurrencies as payment options has been a recent success for the industry. Expansive Reach and Market Accessibility The online betting market is highly accessible and operates globally. Unlike traditional, geographically limited industries, an online video game store can function across worldwide markets, offering investors the ability to engage with diverse demographics and revenue streams. Resilience in Economic Downturns History has shown that when the economy struggles, people tend to seek out entertainment and recreational activities as a means of escape. This fact, combined with the relatively stable demand for online betting and gaming, makes the online betting market a potentially resilient investment option during times of economic downturns. Similarly, an online video game store can also be a stable investment, as the demand for engaging and immersive gaming experiences remains strong, providing consistent revenue opportunities even in challenging economic conditions. Why Should You Choose BigCommerce to Start Your Online Video Game Business? BigCommerce is an ideal eCommerce platform to build your online video game store, thanks to its following advantages: Overall Process to Start an Online Video Game Store If you’re looking to dive into the video game industry, starting a game store can be an exciting way to get involved in one of the world’s most popular and rapidly evolving sectors. To help you get started, here’s the ultimate guide to launching a successful video game store. How to Start an Online Video Game Store on BigCommerce After you’ve completed the foundational steps outlined earlier, it’s time to build your video game store. This phase is often one of the most exciting, as it allows you to express your creativity and bring your vision to life. When selecting your online store template, keep the nature of your product offerings in mind and choose one that best represents your brand. It’s also helpful to research what others have to say about the templates you’re considering. Remember to narrow down your options, as some platforms offer hundreds of template choices. Payment gateways are merchant services that process credit card transactions. Popular options include PayPal, Stripe, and Square. Integrating multiple payment methods into your online store is crucial to providing customers with convenient checkout options. Once you’ve completed the design process, you’ll be ready to populate your store with your game offerings. Be sure to create exciting, SEO-optimized product descriptions that accurately and compellingly showcase your products. A well-crafted return policy can put visitors at ease and build trust. Displaying your return policy on your site can increase the likelihood of customers making a purchase, as it demonstrates your commitment to their satisfaction. In Conclusion By following the comprehensive guide outlined above, you now have the knowledge and tools necessary to turn your video game retail dreams into a reality. From conducting market research to establishing your brand identity and building a loyal customer community, each step is critical to the success of your online video game store. As you set up and grow your business, consider leveraging Atom8’s power to streamline your operations and amplify your marketing efforts. GritGlobal Apps’ sales and marketing automation capabilities can help you optimize your BigCommerce storefront, automate workflows, and engage your customers more effectively for your online video game store. Contact us today!
Types of eCommerce Inventory Management Systems
Are you figuring out costs, making plans to set up your shop? Or are you already running an eCommerce business? Either way, effective inventory management systems are indispensable to make the best business. What is inventory management? Inventory management refers to storing, sourcing, and selling stock. It is about knowing the stock you have, where to store it, how much to sell, and how long to keep it. Understanding inventory management is crucial for businesses of all sizes. Preventing waste helps save time and cost, but even the biggest firms collapse failing to employ the appropriate systems. The types of inventory management systems Adopting the inventory management systems is helpful. The system offers data visibility as well as useful metrics, assisting in making business decisions in the future. Barcode Systems One of the most popular inventory management systems is the barcode system. It improves stock organization, boosts efficiency and accuracy. Barcode allows for instant product scanning, keeping the inventory levels updated automatically. The mobile barcode scanners also help further the scanning process speed. Some of the advantages are: Automatic inventory updates Speedy scanning Efficient stock movement between and within warehouses Fewer mistakes Quick transfers from packing, picking, and shipping Optimized documentation and reporting Radio Frequency Identification Systems (RFID) RFID tagging is one of the best ways to increase operation accuracy. The RFID system is active, covering a range of 300 feet, and works the same as a barcode system. Meanwhile, the passive systems are hand-held devices covering 40 feet scanning range. However, there are some downsides worth knowing: More expensive than a barcode system RFID tags carry more data that unprepared servers bog down Transitioning into RFID is expensive and requires specialized equipment Cloud-based systems Another effective solution is a cloud-based inventory management system. The app uses a subscription-based payment plan, thus lowering the entry cost. It also goes on with the updates, while you‘re continuing with your regular work. It is much better than an on-premise system which requires shutting down the whole program for any update. Furthermore, security is a big win. There is no need to worry about loss or corruption since you can recall information quickly at any time. The operation-critical documents are also easy to store. System Selection Choosing suitable inventory management systems is a daunting task. However, before setting for barcode, RFID or a cloud-based platform, ask yourself: What is the inventory type to work with? How big is the business? What is the deployment strategy to adopt? How much is the budget and do you need a new management system?
Tips To Sell Car Parts Online
A well-designed website with modern design elements enhances the user experience. It is capable of capturing the attention of visitors and increases functionality, especially for stores that sell car parts online. Key elements that increase visitor engagement include: Have Filter by Vehicles Effective product filters help the visitor find the products more easily. Without a filter for vehicles, there would be a long list of products that might not match the user’s requirements. The best website to sell car parts offers filters by vehicles so that only selected products appear in the search result. The visitor will have a better experience, and chances are higher that they will return for another purchase. Have Chatbots A chatbot is a virtual assistant that helps solve your customers’ concerns during their shopping. It is an essential element of the best website to sell car parts because they can easily manage customer requests and engage with them. Bots make it quick and easy for consumers to find car parts by quick response and recommendations, thereby turning visitors into leads. It can also collect and store data in your CRM, from which to derive valuable and actionable insights. In other words, Chatbots are of paramount importance for a company also. Have Loyalty Programs A loyalty program is a reward to the customer for his contribution to your business. This is a chance to win repeated purchases from your customers. Some tactics to entice customers are personalized discounts, rewards, free merchandise, coupons, etc. Have Various Payment Gateways Having multiple payment gateways makes the check-out process hassle-free and convenient. Buyers often have a preference for specific payment methods. If a website fails to provide the payment getaway customers want to use, chances are high that they will eventually cancel the purchase. Several payment methods are beneficial for the business also as they can rely on one method of payment in case the other fails or encounters any problem. Have Professional Images High-quality product images are essential for websites that sell car parts online. Having professional photos can easily make or break your online website. Product images capture users’ attention and help them understand the products better. What’s more, images can improve SEO ranking. Good pictures which are shareable can help generate positive brand awareness. Have Detailed Descriptions Writing compelling and detailed descriptions help to educate the visitor about the product and enables them to make informed decisions. Detailed descriptions, including features and users guideline, allow you to build trust with your shoppers and increase conversion rates. It’s also an important part of improving your SEO. In contrast, a poor product description can potentially turn someone away from a sale. Wrap Up The best website to sell car parts will have custom functionalities needed for the automobile industry to make searching and purchasing much easier.
