Adopting a Stockless Inventory System for Your eCommerce Business


In almost all inventory delivery programs, vendor-customer alignment is necessary to ensure that goods get to where they are supposed to. By moving critical distribution tasks from the facility to the distributor, alternative eCommerce stockless inventory systems enable suppliers to cut on-hand supplies.

What is a stockless inventory system?

A stockless inventory system is an inventory system where the business does not carry any physical inventory. All inventory is managed and tracked through computerized systems. This type of inventory system is often used in eCommerce businesses.

Adopting a Stockless Inventory System for Your eCommerce Business

There are many benefits to using a stockless inventory system for your eCommerce business. First, it can save you a lot of money. You will not have to pay for inventory storage or shipping inventory to your customers. 

Second, it can manage your inventory more efficiently. You will be able to track inventory levels and order more inventory when it is needed. An eCommerce stockless inventory system can help to prevent stockouts and ensure that your customers always have access to the products they want.

Adopting a Stockless Inventory System: The setup

If you are considering adopting a stockless inventory system for your eCommerce business, there are a few things that you should keep in mind. 

  • First, have an excellent computerized inventory tracking system in place. This system will need to be able to track inventory levels and order more inventory when needed. 
  • Second, be sure that you have a good supplier relationship. Your supplier will need to be able to deliver products to you quickly and efficiently when you place an order.
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Every eCommerce stockless inventory system should aim to reduce on-hand inventory while enhancing product availability without generating more replenishment activity than is necessary to offset the cost savings.

Adopting a Stockless Inventory System for Your eCommerce Business

Clients that attempt to pack supplies into areas where their replenishment levels or procedures are arbitrarily defined are frequently the best candidates for stock-out situations. Stockless merchants demonstrate how spaces may be used for commercial benefit using this old inventory procedure as a teaching tool.

To estimate the optimum replenishment levels, suppliers must first collaborate closely with providers to understand the items consumed and their intended uses. You have to work together straight away from the outset. Instead of lecturing clients on what they are doing incorrectly, it is more important to teach them how to hit par levels and comprehend what is truly in stock at any particular time.

For this reason, provider storeroom reports—which indicate what is distributed onto the floor and might provide more useful product use information than vendors can gather from bulk shipping records—might be the most useful for setting up stockless operations.

Using an eCommerce stockless inventory system will pay off in the long run

All stockless delivery methods have a few advantages that can save asset costs and boost efficiency for providers:

Adopting a Stockless Inventory System for Your eCommerce Business
  • Staff time: Although the perception of stockless is that it eliminates employment, in actuality it enables businesses to redeploy personnel to care-focused duties. The staff spends less time carrying boxes and going back and forth to stock rooms to replenish supplies with fewer and more frequent deliveries. Allowing employees more freedom to focus on different projects can also improve current income streams or create brand-new ones.
  • Product integrity: When suppliers purchase products directly from manufacturers, they receive them by the case, which is rarely the smallest unit of measurement but is occasionally acceptable. When a new widget is released, products might quickly expire, become damaged, misplaced, or go out-of-date, leaving clients with useless inventory.
  • Reduced waste: By eliminating corrugated cardboard and shrink wrap from the mix, stockless systems also eliminate operational waste. Reducing disposal expenses and personnel illness risks can quickly add up to long-term financial savings for providers.
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Enhancing Inventory Visibility and Planning

Maintaining accurate inventory visibility is essential in a stockless inventory system to prevent stockouts and overstock situations. BackOrder integrates seamlessly with your existing inventory management systems, providing real-time updates on inventory levels and backorder quantities. With precise inventory data at your fingertips, you can optimize inventory planning, minimize stockouts, and maximize the efficiency of your stockless inventory approach.

Improving Operational Efficiency

Managing stockouts and manual inventory adjustments can be time-consuming and prone to errors in a stockless inventory system. BackOrder automates the backorder process, reducing the need for manual intervention and freeing up valuable time for other business tasks. By streamlining inventory management processes, BackOrder helps you operate more efficiently and focus on growing your ecommerce business.

Addressing Stockouts with BackOrder

While a stockless inventory system aims to minimize on-hand inventory, it also increases the risk of stockouts, where popular items run out of stock unexpectedly. This can lead to lost sales and frustrated customers. By implementing BackOrder, you can seamlessly manage stockouts by automatically switching products to backorder status when inventory levels hit zero. This ensures you never miss a sale and maintain customer satisfaction, even with minimal on-hand inventory.

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In Conclusion,

Although stockless conversions initially demand high levels of cooperation and confidence between vendor partners, after the model develops and achieves a certain comfort level, it no longer requires such high levels of collaboration and trust. Indeed, all required is proper account management and frequent client business evaluations to fulfill demands. Contact us today to learn more about how to adopt an eCommerce stockless inventory system for your eCommerce business.

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