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.
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.
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.