Inventory Control Systems for Your eCommerce Business
To run a successful eCommerce business, you must have an efficient system for tracking your inventory. Having an effective inventory control system, you can easily monitor stock levels and purchase additional items as needed. In this blog post, we’ll be discussing the importance of investing in an adequate eCommerce inventory control system for your eCommerce business to ensure that the company is always stocked up with the necessary merchandise while keeping customer satisfaction high. An Inventory Control System: What is it? A technological solution known as an inventory control system monitors and tracks a company’s products across the supply chain. With this technology, purchasing, shipping, receiving, warehousing, and returns will all be integrated and managed in one system. The ideal eCommerce inventory control system will automate several labor-intensive procedures. It will provide you with a precise image of your inventory, where it is, and when you need to restock in order to keep your stock at the right levels. Types of Inventory Control Systems Perpetual inventory system A perpetual inventory control system monitors inventories in real time. A product’s barcode is scanned and deleted from a worldwide inventory database as soon as it is sold. One is scanned and entered into the inventory database when it is received. The same database and information are accessible to all components of the system. Without human inventory counts, a perpetual inventory offers a highly detailed picture of inventory changes and an accurate accounting of inventory levels. Periodic inventory system A physical count of the inventory is used to update a periodic inventory system at scheduled times. A company using a periodic inventory system won’t be aware of how many items it has until the physical count is finished. When it comes to fulfilling orders, it is simple to understand how this may be an issue. When a customer wants to buy, you now need to physically verify your inventory to determine if you have it in stock even though your stock count was correct weeks or months ago. The Importance of eCommerce Inventory Control Systems Real-time inventory levels Whether a product is sold, bought, made, or returned, a perpetual inventory system will update inventory levels globally. You may assess inventory flow and establish efficient reorder points with an accurate real-time inventory. Out-of-stock scenarios and excess inventory are reduced as a result. Optimize your logistic workflow The process of bringing a product to a client involves multiple phases. You can trace a product at every stage of its journey with the help of an efficient eCommerce inventory control system, which will also provide you with the means to identify logistical bottlenecks. You now have more time to focus on making changes. Financial savings Inaccurate inventory may cost you in a variety of ways. On the other side, an incorrect inventory may result in excessive stock, which would raise the cost of taxes, insurance, and storage. By maintaining inventory at the right levels, an inventory control system will help you save money. Reduce manual labor inaccuracies Physical inventory tracking is vulnerable to fraud and mistakes. An inventory control system tracks a product from the purchase order to client delivery, eliminating human error and theft. Improve customer satisfaction Customers expect their products to come quickly, especially with choices for next-day or even same-day delivery available nowadays. A consumer may order a product that you indicate is in stock but don’t have if your inventory is off. This can lead to a backorder or canceled order, which could result in a disgruntled consumer who might not place a purchase from your shop again. In Conclusion, Each eCommerce shop depends on its inventory to survive. Backorders may be avoided, client satisfaction is maintained, and your firm will be productive if you have the proper items in stock. By automating manual inventory control procedures, optimizing your logistical workflow, and providing you with a real-time picture of inventory levels, a powerful eCommerce inventory control system like BackOder will handle most of this labor on your behalf.
Ensuring Inventory Accuracy for Your eCommerce Store
In supply chain management, managing inventory is crucial, but it isn’t always straightforward. Retail firms must thus maintain consistent SKU-level inventory data. There are important factors to consider even if you have a solid track record with inventory accuracy. Continue reading to find out more about ways to increase eCommerce inventory accuracy. What is inventory accuracy? Inventory accuracy refers to differences between the actual quantity or kind of physical inventory and what is recorded or assumed to be the case. It is usually the discrepancy between what is recorded in an inventory management system and what is available for sale at a store, warehouse, or storage facility. How to calculate eCommerce inventory accuracy Physical inventory counting Inventory reconciliation, or comparing actual inventory counts with inventories recorded, aids in minimizing stock discrepancies and determining their root causes. You’ll need to physically count all the merchandise you have on hand and compare it to what you should have. Inventory accuracy rate may be determined using the following formula: Inventory Accuracy Rate = (Counted Units / Units on Record) x 100 Inventory valuation This technique of assessing inventory consistency is an inventory accounting approach that involves counting the value of the inventory you have on hand (physical inventory) and dividing it by the value of the list you should have in whichever system you use to manage inventory data. Because you are not comparing each item in your inventory, this technique is less precise. If your inventory accuracy is low, review your sales receipts and records. Tips to Ensuring Inventory Accuracy for Your eCommerce Store Count your inventories regularly eCommerce inventory accuracy is an important factor to consider. Inventory should be verified periodically to ensure the physical list matches the records. By doing this frequently, you may reduce the likelihood that your inventory is wrong. Additionally, if your inventory is wrong for whatever reason, you’ll be able to correct the problem right away. Implement the cycle count program Cycle counting is a manner of managing inventory where a part of the inventory is measured in certain locations, on certain days, and on a regular schedule. Adopting a cycle count program allows you to skip annual physical counts and instead count particular goods on a more regular basis, ensuring your inventory is correct. Increase inventory security Proper inventory security assures the safety of your items while they are in storage. You can reduce theft by making sure your merchandise is safe. As a consequence, your inventory counts will stay accurate because theft is not a factor. Use more professional storage techniques Instead of self-storing your goods, consider having it professionally stored in a suitable warehouse. It is all too simple to misplace stuff in your apartment, cellar, garage, or vehicle. Although this type of investment may result in higher overhead expenses, you may wind up saving money in the long term due to increased eCommerce inventory accuracy. Collaborate with a fulfillment partner Rather than maintaining your own inventory, you may collaborate with an eCommerce fulfillment partner who will store and manage your goods in their warehouse(s). Picking, packing, kitting, shipping, inventory management, and warehousing are all services provided by fulfillment firms. BackOrder, for example, may give inventory forecasting tools as well as access to data and distribution metrics that measure inventory stability. In Conclusion, Improving inventory accuracy and optimizing inventory management is critical, but it may also be challenging and time-consuming. Thankfully, you may outsource all this to a competent third-party logistics service. Contact us today to find the best solution for your eCommerce inventory accuracy!
