Implementing a Perpetual Inventory System for Your eCommerce Store
If you’re in the eCommerce space and looking to take your store’s inventory management system to the next level, implementing an eCommerce perpetual inventory system is a great way of doing so. In this blog post we’ll walk through why perpetual inventories are beneficial for businesses and how best to implement them in an eCommerce setting. Read on as we explain what makes these modern ways of managing stock stand out above other methods. Definition and benefits of an perpetual inventory system You may have heard the term “cycle counting” used to describe perpetual inventory. Regardless of the terminology, the basic idea is the same: A continuous stock count is the main objective of perpetual inventory management. Every time an item is bought or sold, an eCommerce perpetual inventory system requires that stock records be updated. With perpetual inventory software, these stock changes take place automatically, allowing you to maintain an accurate running inventory count without having to make corrections manually after each order. Step-by-step guide for switching to perpetual inventory management 1. Ensure that everyone is on board with the change As with other company activities, if you want a change to go well, you must get everyone on board. Inform everyone from the warehouse to finance, sales to marketing, and other relevant departments about the change and why it is being implemented. 2. Select software that fits your requirements When it comes to inventory management software, merchants have many options, each with its features, integrations, and pricing. However, your company’s best inventory management software will be determined by its specific needs. 3. Make sure your inventory is recognized and trackable Creating an inventory tracking system will aid in the smooth operation of your eCommerce perpetual inventory system. Use barcodes or RFID tagging to maintain merchandise recognizable and trackable from the time it is booked in the warehouse until the time it is sold to a client. 4. Establish a cycle count schedule Rather than depending on annual takes, perpetual inventory management streamlines the burden of continuously counting goods. Set a cycle count plan to ensure the effectiveness of your perpetual inventory system. This calendar will help you keep on track with your inventory goals and develop a habit of checking inventory consistency. 5. Begin with smaller SKUs Transitioning from periodic to an eCommerce perpetual inventory system may appear to be a daunting process, but you may reduce the stress by starting small. Begin gradually transferring your inventory to eternal rather than attempting to do it all at once. 6. Finished all pending inventory transactions Before transferring a group of SKUs to the perpetual inventory system, reconcile any existing transactions. Additionally, make sure certain SKUs are not awaiting restocks. If they are, make sure the new stock is quickly booked in so it can be counted. Closing any open inventory transactions prior to transitioning to perpetual inventory reduces the chance of stock errors. In Conclusion A perpetual inventory system can help you keep up-to-date records related to incoming orders, outgoing stock, and internal transfers within departments or warehouses, and it also allows you to streamline time-consuming manual processes for better efficiency. Contact us today if you have any concerns or need more support for implementing an eCommerce perpetual inventory system into your business.
Using Cross-Docking to Improve Your eCommerce Operations
As an eCommerce business, there’s no doubt that you understand the importance of operational efficiency for improving financial returns. You might have heard about eCommerce cross-docking as a means to streamline and optimize existing processes. This can be especially valuable in distribution and inventory management, where minor improvements often create significant cost savings. In this blog post, we’ll explore how leveraging cross-docking techniques can help your eCommerce operation become more efficient and profitable. What does cross-docking mean? Cross-docking is a logistics technique that allows goods to be delivered straight from a supplier or manufacturer to a consumer or retail chain. This implies no need for storage or warehousing because inbound freight is unloaded straight onto an outbound container. In this case, sorting items takes priority over using the distribution center as a warehouse or place to store inventories. At practice, this implies that the distribution center in a cross-docking facility serves as a hub where inventory is promptly processed and transported to the next stage of the shipping process. When is eCommerce cross-docking useful? Perishable products Cross-docking may be a real advantage if your supply chain includes perishable items like food, beverages, or even medicine. Perishable items have a shorter shelf life, therefore you need a logistics plan that uses the least amount of storage possible. eCommerce cross-docking allows items to travel straight from the source of supply to the end location with the least amount of storage time required. Supplier components and raw materials It is advantageous for the end user from a logistics perspective if raw materials and manufacturing inputs aren’t kept in storage at any stage in the supply chain because this might affect production timeframes. Cross-docking can assist in resolving this problem by ensuring that goods go as quickly as possible through the supply chain to their intended location. Pre-packed and sorted goods These commodities, by definition, do not require any sorting or arranging when they arrive at a distribution location. Keeping these items for more than 24 hours is frequently a needless cost. Cross-docking enables you to transfer these things through the supply chain without spending time or human resources on storage. Cross-docking practices Continuous Cross-docking Products are continually moved via a central location in continuous cross-docking. Inbound products are received, processed, and transported outbound to their next destination as soon as possible. This is the most straightforward eCommerce cross-docking method of the three. Once your operation is set up, it tends to operate on its own as long as you have strong automation tools and a robust transportation system in place. Consolidation Arrangements Consolidation arrangement is the technique of grouping multiple small shipments or items into a bigger outgoing package. You carry out this within your cross-docking facility. When using this method, extra storage is frequently required since you must typically store some products while you wait for other deliveries because the items are combined into one single shipment. By combining your shipping, this strategy might help you save money if you have the storage capacity. Deconsolidation For simpler transit or quicker delivery periods, big goods are received and subsequently divided into smaller shipments using the deconsolidation process. When a product or material is delivered directly from your distribution center to a customer, this strategy is frequently employed. In the shipping facility, a huge quantity of merchandise is separated before being delivered to a customer. In Conclusion, eCommerce Cross-docking can only be successful if businesses are open about their inventory and supply chain procedures and dedicate themselves to developing an automated infrastructure that can keep up with the quick speed of this logistics strategy. BackOrder is delighted to assist you with that, whether it be by giving information and assisting you in making a better-educated decision or by offering a software solution that improves the effectiveness of your inventory management. Don’t hesitate to contact us today!
