Inventory managing Risks and Compliance BigCommerce operators need to know
The current state of inventory risks and compliance A 2020 study shows that 66% of products tested from various eCommerce stores failed safety compliance tests. Many small retailers with low-cost items completely neglect inventory managing risks and compliance. Whether your business is out of your basement or using a third-party warehouse like FBM or dropshipping, you’ll want to comply with safety guidelines as soon as possible. At its core, inventory managing risks and compliance ensures your business runs according to safety protocols to prevent disasters for your store and customers. If you’re scratching your head right now not knowing if your BigCommerce store complies with guidelines, keep reading. Now we will explain everything you need to know about inventory management risks and compliance. Can I ignore inventory risks and compliance? Simply stated, you cannot turn a blind eye to inventory risks and compliance. The consequences of neglecting proper inventory management are high and could lead to fines or unwanted store shutdowns. Here are the risks if you miss inventory management compliances: Spoilage of perishable goods – Products with limited expiration dates must be sold on a First In, First Out (FIFO) basis. You risk sending customers spoiled goods without proper stock allocation or contaminating your inventory space. Risk pooling – One of the biggest concerns in inventory management is understocking and overstocking products. When you spread your inventory across multiple locations, you’ll have more uncertainty over the quality of the product. More prominent retailers consolidate their vast inventory into one controlled space. Missed orders & shipping – Without data accuracy, the chances of missing shipments rise exponentially. Not only are you jeopardizing customers’ fulfillments, but you’ll be paying extra for every missed shipment on refunds, transportation, and customer support. Loss of revenue from out-of-stock items – Forgetting to restock items will have customers moving to competitors – 70% of Shoppers faced with Out-of-Stock Products switch retailers. Fines and fees from non-compliance – Some local guidelines dictate you must commercially register your inventory space upon reaching specific thresholds. In the U.S., for example, you’ll need to log inventory according to the IRS’s tax guidelines, even if you’re running your business from home. See immediate benefits with accurate reporting On the other hand, correctly handle your inventory, managing risks and compliance, and you’ll see immediate improvements: Easier day-to-day operations – An inventory management plan means less time reviewing item reserves, restocking, and supply shortages. Accurate inventory information – Integrating your labels and SKUs into your Point of Sale system prevents headaches crosschecking outgoing orders and stock numbers. Prevent unforeseen costs – Circumventing missing shipments and replacing lost and damaged stocks mean less operational costs to your business. Stores that stay proactive in preventing inventory scams and theft must follow strict compliance. Better revenue forecast – Deciding your business future will surely be less stressful when you have accurate inventory data and a production workflow that takes care of unexpected mishaps. Returning Customers – Ensuring shipments arrive on time with non-damaged goods creates a winning combination that will sure bring in happy and loyal customers. How can my BigCommerce store follow inventory compliances? Accurate and detailed inventory reports – If you manually enter inventory updates at the end of the workday, you could risk inaccurate data or duplications. You’ll want to spend as little time as possible doing data entry while getting the most accurate reports. To prevent human errors in stock management, use Atom8’s inventory automation workflows. BigCommerce stores are using automation to change product availability, stock numbers, and order creation within a fraction of the time. Labels and SKU naming standard – Start simple by labeling your products correctly – SKU naming is essential to your business. Create a naming format for SKU that you can read and remember. Combine using RFID or NFC scanners to eliminate human errors in stock entry. By doing the hard work earlier, you can use SKU-level research to enhance profits later in business. Real-time risk management – To stay alert to threats on inventory, your team needs to be notified immediately of suspicious activities. Atom8 can send notification emails when an abnormally large order is placed or if customers use an unverifiable email domain. Centralized storage space – Risk pooling is an open industry secret, but you start with Atom8’s Google Sheet integration. By creating workflows for all your inventories. By consolidating data into one centralized Google Sheet workbook, you can check for updates across multiple channels. Your store won’t have to compromise on the number of inventory spaces and still receive accurate and updated information. For Drop Shippers – Choose reputable suppliers who comply with FDA or local CDC guidelines. While it’s tempting to go with the lowest bidder, there’s no point in selling dangerous and outdated products. No more unnecessary risks; start inventory compliance today for your BigCommerce store Don’t fall into the trap of negligence when it comes to inventory management. Stores that fail safety compliances or don’t take the time to report inventory data accurately will eventually pay the high cost. Be better prepared than your competitors and delivery better, faster, safer products to your customers by following this guide on inventory managing risks and compliance. Learn more about inventory automation with Atom8, BigCommerce’s premiere automation software.
Top 5 inventory managing software for BigCommerce stores
Overselling and underselling your product is a nightmare for businesses of all sizes. No eCommerce store wants to sell the same piece of product twice or has no backorder option for hot-selling items. Optimize and automate your catalog management today; here are our top 5 inventory managing software for your BigCommerce stores. Why you need inventory managing software for your BigCommerce store BigCommerce merchants spend days looking for the best social media automation tool or upsell integration apps but neglect to optimize their inventory workflow. It’s surprising to learn that 1 out of 3 businesses will miss a shipment deadline because of poor inventory management. Here are just a few reasons why your eCommerce stores will benefit from inventory management software: Prevent spoilage of unsold inventory – vital for stores selling perishable goods. Circumvent duplicated orders. Fulfill customers’ shipping expectations. Avoid excessive materials acquisition for production. Cross integrate SKUs and tracking data across multi-channel commerce platforms. Optimize operational costs of manual bookkeeping. Simply put, inventory management is how you organize and allocate your stock. A problem-free inventory management system will be the best detergent against customer dissatisfaction. Today, we will focus on BigCommerce’s best offerings for inventory management software, each designed to solve unique problems you might be facing with your eCommerce venture. #1. BackOrder BackOrder allows customers to put in orders for items that are out of stock. It’s ideal for businesses like MDT, whose products have a long production time. By installing BackOrder, your customers won’t have to check for restocks constantly, and you can stay ahead of orders. Additionally, BackOrder sends notifications when order thresholds are reached so you can take control of your inventory. Delisting an out-of-stock item that was flying off the shelves could be doing your business more harm than good. By allowing customers BackOrder options, you can proactively secure materials ahead of time to produce your bestsellers. Remember, prospective customers won’t wait around if your competitors offer a more straightforward purchasing process. It’s worth knowing that out-of-stock items can cost merchants 8-12% of total revenue. Your eCommerce storefront will determine the customer’s purchase decision more than any other factor you can control. Make a memorable first impression and let customers see what you have to offer with BackOrder at your fingertips. #2. Atom8 Information invisibility spells disaster for your eCommerce business. A minor mistake in manually cataloging materials could result in your store having no product for next week! Spreadsheets might help you start inventory management initially, but relying on them to grow is unwise. Atom8 aims to solve the “information silo” problem of inventory management with automation and workflows. For example, Atom8 sends your shipping data from eCommerce stores directly to logistics, ensuring no wasted inventory sits on the shelve while customers wait. Knowing that the data of the items sold on the storefront is precisely what your backend team is receiving for shipping and cataloging means no more inventory mistakes. You won’t need an inventory manager for your startup; Atom8 can send real-time notifications to key stakeholders when items are low on stock. Another pre-built workflow can change item storefront availability based on inventory levels, letting you meet the PAR level before ordering new items. Having everyone on the team be aware of shortages and out-of-stock items will help you better coordinate and solve inventory issues before they arrive. #3. ShipStation ShipStation is a multi-channel platform that lets your business get a handle on shipping and, in turn, keeps customers’ fulfillment high. From something as simple as knowing which item has or has not been shipped to providing SMS tracking for a better customer experience, ShipStation is the premiere shipping integration platform. ShipStation can receive and coordinate data from 40 sales channels, making this an excellent choice for businesses with multi-channel storefronts outside BigCommerce. If you’re stressing over shipping commitments, look no further than what ShipStation offers. #4. Fishbowl For manufacturers on BigCommerce, Fishbowl provides solutions to maximize production and warehouse inventory workflow. Track inventory across multiple warehouses and avoid double data entry disasters from miscommunication. Fishbowl lets users integrate BigCommerce inventory information into one window for management, perfect for medium to large businesses. While Fishbowl lacks customer segmentation features compared to its competitors, the application can generate order reports so your team can follow up on high-profile buyers. #5. Katana A crucial aspect of inventory management is handling the production process; Katana’s interactive interface makes this simple and even fun to do for BigCommerce merchants. Businesses that produce in bulk or have multi-level manufacturing processes need a dedicated platform to understand the relationship between sales and inventory. Katana lets users make notes on manufacturing orders to ensure no item runs out without proper acknowledgment. Wrapping up Finding the ideal inventory managing software for your BigCommerce store is daunting. It’s tempting to keep doing inventory management the old ways: with spreadsheets and passive problem-solving. However, businesses passionate about efficiency and customer satisfaction must find ways to incorporate new technologies into their inventory management system. We recommend starting with BackOrder for all BigCommerce stores. BackOrder allows you to control inventory on your hottest products and bulk edit stock levels. The application is also IMS/ERP compatible, making it easy to integrate with warehouse and storage for better inventory management.
BigCommerce Atom8 vs. Celigo vs. Flxpoint vs. Walmart Connector
Let’s take a look to see what’s the best choice for BigCommerce eCommerce Automation software between Atom8 (a no-code eCommerce Automation software) vs. Celigo (an iPaaS – integration Platform as a Service) vs. Flxpoint (an eCommerce operation platform) vs. and Walmart Connector (a dedicated store-to-seller integration app). Understanding the difference between connector applications, integration platforms, and a dedicated eCommerce automation software will help free up hours of unnecessary work. Features differences Atom8 vs. Celigo vs. Flxpoint vs. Walmart Connector Customer segmentation strategy Small to medium size business owners know that loyal customers keep the doors open. On average, 65% of business comes from existing customers. As shops grow, owners are encouraged to reward loyal customers with exciting benefit programs. One way to celebrate your customer base is to segment new and existing customers. Take notice of big-spending customers, create insider incentives for their subsequent purchases, or encourage upsells with one-time spenders. Step up your customer personalization; 75% of customers will choose brands that provide a personalized customer experience. Only one of the three applications supports customer segmentation – Atom8. With their pre-built automation template, businesses can easily create multiple factions for their customers based on purchase behaviors. Inventory management Did you know that 1 out of 3 businesses will miss a shipment deadline because of poor inventory management? It’s frustrating to spend most of your time reviewing inventory stocks and cross-referencing orders. For many businesses, inventory management is the first to get automated. Atom8, Celigo, and Flxpoint all support inventory management on BigCommerce to different degrees. With its built-in integration with 3PL warehouse management software, Celigo offers the most robust option. If your business is focused more on handling backorders and having real-time inventory notifications, Atom8 stands out as the crowd-pleaser. Having a constant eye on inventory while enjoying time for creativity is why businesses are automating in the first place. Multichannel listing Want to branch out into different commerce platforms from BigCommerce? Walmart Connector is an official Walmart Channel Integration Partner designed to bring your business onto the world’s largest retailer. Similar connector apps on BigCommerce, such as Etsy Connector or Newegg Connector, serve similar purposes. Exposure is key to maximizing your business’s customer pool. Celigo’s most significant selling point is its ability to consolidate many connectors into one platform. Unlike Walmart Connector, users on Celigo can browse many different integration options and choose from many outlets. Price and budget At the heart of it, these three programs are drastically divergent in their core concept. Here we see such a vast difference in pricing between Atom8, Celigo, and Flxpoint. The most affordable option suited for businesses of all sizes is clearly: Atom8 price: Minimum of $49.9 / month The “no code” eCommerce Automation software helps any business eliminate manual work and remove human errors through automation. Larger firms with a need for a dedicated platform to consolidate many channels of information, such as 3PL warehouse management and CPM & CRM software, Celigo and Flxpoint have what you are looking for. Celigo: Upfront fee: $900 & Recurring fee: $250.0 / month Flxpoint: Minimum of $999 / month Connector apps like Walmart Connector are niche in their function. Walmart Connector is a good starting point if your business plans to expand outside the BigCommerce bubble. Walmart Connector: $49.0 / Month BigCommerce Atom8 vs. Celigo vs. Flxpoint vs. Walmart Connector To recap, if your business is looking for an eCommerce Automation solution that excels at inventory management, marketing automation, and customer relationship, Atom8 is our recommendation. The ideal option for rising SMEs wanting to automate their workflow without breaking the bank, Atom8 will let you enjoy running your business again. Celigo and Flxpoint offer your business a management platform with a vast choice of integration. Though running the system might take time and some technical knowledge, these applications make a difference in how you run your business. By reading our analysis, we hope you have found the best BigCommerce Automation software for your business between Atom8 vs. Celigo, Flxpoint, and Walmart Connector.
Strategies To Reduce Inventory Issues
Inventory management is a key yet challenging part of every eCommerce business. Companies rely on inventory management to know when to order stock, how much to order, and so on. However, problems with inventory management are threatening their business’s activities and results. Look at which inventory issues you need to monitor and get ways to build a strategy for reduction. Common inventory issues facing online businesses Complex supply chain The supply chain of eCommerce businesses is getting more complicated due to the tough competition in the marketplace. Businesses must do everything they can to ensure their order fulfillment. They have to expand their range of products and work with more suppliers. The complexity and daily fluctuation are placing a burden on eCommerce inventory management. Dealing with complexity makes online businesses distracted from focusing on serving customers and creating business value. Out-of-stocks Sometimes, e-tailers try to reduce their inventory to decrease costs. This leads to a high risk of stockouts. In addition, failure to track inventory is also a reason for stockout events. When this happens, e-tailers face declining revenue and customer satisfaction, and more back-end costs. Deadstock As opposed to stockouts, when businesses reserve too many items or can’t sell goods, they may face the problem of deadstock. Deadstock deprives businesses of the sales which could be generated by selling those stocks while resulting in higher operational and warehouse costs. Bad operational performance Many operating procedures are carried out as a reaction to a situation rather than a part of the plan. As a result, bad performances negatively affect efficiency and thus increase operational costs. Spreadsheets and manual records Many businesses usually use spreadsheets to manage inventory and manually track the inventory. This is not a matter for small-to-medium-sized businesses. But when it comes to large-scale companies, it is not practical. Big companies will struggle to manage a variety of products in addition to facing the risk of human error. Top 6 strategies for inventory issues reduction 1. Create good relationships with customers and suppliers Developing strong relationships with suppliers and customers is an effective strategy for inventory issues. Open communication with your suppliers. As good business relationships rely on strong communication. Furthermore, always make sure every problem or concern is immediately reached by two sides. To build a good relationship with customers, always be transparent about what you have and avoid over-promising or under quality orders. 2. Forecast Forecasting helps determine how much inventory should have in the warehouse for a specific period. Hence, you will stock the right quantity rather than leaving it falling below a safety threshold or taking up your stock space. Then, lower your risks of stockouts or deadstock. Inventory demand forecast should involve past sales trends and the correlation with future needs. You can use an inventory management system to make your forecast more accurate. 3. First in, first out First in, first out, or FIFO is an inventory management method focusing on selling older stock before anything else. It helps keep the natural flow of goods and makes it easier for record-keeping. Essentially, using FIFO means there is a high rotation of stock. Therefore, you may avoid potential deadstock. Whether you are a fashion, tech, or food company, you should not miss out on this effective method. 4. Allow backorder A demand forecasting is hardly as exact as it is in reality. It may be higher or lower. Thus, allow backorder to make sure you still get revenue and do not disappoint your customers. Backorder enables you to sell an out-of-stock product and deliver it to the customer later when you get the goods. BackOrder is a powerful platform on BigCommerce that helps online merchants manage and fulfill backorders effectively. So, if you are holding a BigCommerce store, give it a try. 5. Automate inventory management Automation helps you decrease manual tasks and result in better performance. Deploy a software or platform that replaces manual inventory documentation, paperless transactions for invoices and purchase orders. An automation application like Atom8 will help you execute repetitive activities and avoid human error. 6. Have a contingency plan One of the essential strategies for successful inventory management is preparing for bad situations. Ask yourself what threats your inventory will face, how your inventory will be affected, and what you will do in that circumstance. Have an action plan to deal with these. The more detailed your plan is, the better it is. Ensure that you specify a person to be responsible for execution. Final thought Inventory issues are unavoidable for every business. But you can take some actions to reduce them and get your business to grow. Keep in mind that no matter which strategy you are following, it is always necessary to combine humans and technology. Humans come up with ideas, and technology makes the best of performance.
Inventory Management Process: What and How
Working in procurement means handling responsibilities that cover both different and related tasks. A complicated aspect of these tasks is the supply chain, where you have the inventory management process. Notably, the approach you take in recording, tracking, and managing your inventory can have a significant impact on your critical business processes. Every aspect can either deplete or enhance your business, depending on how you manage it. Therefore, an effective inventory management process is very important for the success of your business. Luckily, working to create a detailed understanding of your inventory management process and applying the right techniques can optimize your inventory processes for productivity, efficiency, and profitability. Steps of an inventory management process Receive delivery These goods can include raw materials for manufacturers, finished goods for resale, and indirect materials to provide support for the daily operation of a business. Review, sort, store goods In the review process, goods are checked, sorted, and stored on shelves. For small businesses, they might not have a separate receiving department compared to big companies. However, you can use the warehouse as a place to sort and store goods. Furthermore, it is essential to assign goods with unique stock-keeping unit codes and tag with barcodes to track them easily. Monitor and update inventory level Under this process, inventory levels are consistently monitored, with physical counts conducted occasionally. Furthermore, an automated inventory system can aid the updating. The monitoring and updating allow you to ensure you know the available inventory and help reduce deadstock, stock out duplicated orders, or fraud. Purchase goods when inventory level is low Customer places orders, so it is natural for your inventory level to become low. You can use automation solutions to create low stocks level alerts when inventory falls to a certain number. Supplier relationship management is crucial for effective stock purchase. In times of supply shortage, you can allow backorders if the restocking status is clear. Inventory management process best practices Despite the risk of having short inventory, most business owners haven’t find the best way to grow their revenue and improve customer experience. If you still have a challenge with your inventory management process, you can follow inventory management process best practices to streamline your business to the next level. Analyze, plan, optimize The heart of every good inventory management process is knowing what you have and managing it properly. When you implement the right inventory best practices, you can optimize your level to boost efficiency and meet customers’ demands. Customers won’t hesitate to drop their negative experience if you dint meet their expectations. However, analyzing, planning, and optimizing your inventory can help improve your business and customer satisfaction. If your inventory is not being effectively managed, you might need to look for a way to reduce inventory holding cost. Use a suitable system and solution One of the best business solutions you can implement is using an inventory management system. Today, we have a cloud-based inventory management system that allows you to work seamlessly. You have to pay a subscription to enjoy the full benefits of inventory software that suits your business. Importantly, cloud-based inventory works in the background, running everything smoothly. However, the software needs trained staff to operate it. During training, you can ask any question as you understand how the software works. Using an automated inventory management process saves your business cost, manpower, and resource as you improve on customer satisfaction
Inventory Management Problems To Avoid
Every store works like a chain reaction. A small disruption might cause the whale system to collapse. That’s why merchants always have to try their best to minimize the inventory management problems However, it is a difficult job. Every part of your company is affected as a result and outcomes. Here are popular inventory management issues to look out for in your supply chain to assist you. To have a better experience, you should avoid all of these issues. The complexity of the supply chain Global supply chains change regularly, putting a strain on inventory planning and management. When, where, and how the product ships need to be flexible. It sometimes takes a longer lead time than usual due to unexpected situations. There are many challenges that store owners have to face up during their inventory management. Warehouse space management Managing space effectively is a daunting challenge. Inventory management platforms can help you plan and build warehouse spaces to better monitor the timing of new stock deliveries. It may take into account important factors like available space. Find out more about the distinctions between warehouse and inventory management. Inadequate order One of many severe inventory management problems is inadequate order. You can reliably forecast customer orders using historical and seasonal data patterns. Rising competition Volatile economic shifts and market forces affect the competition for raw materials in globalized supply chains. As a result, small companies are often forced to choose between competing for high-demand products and maintaining sufficient inventory to keep costs under control. Changes in packaging To eliminate waste, compostable packaging—or eliminating packaging—presents new challenges for warehouse design and storage. It may also mean purchasing new equipment or reducing the shelf life of certain products. Product portfolio expansion The online operation makes it easy for massive warehouse fulfillment. These techniques make expanding inventory and diversifying product portfolios simpler, but they necessitate modern technology and financial resources. Overstocking Having too much inventory on hand is just as bad as having too little. Overstock harms a company’s cash flow and might lead to inventory-related issues such as storage arrangement. Inventory depletion Inventory loss might be due to spoilage, injury, or theft. It necessitates the identification, monitoring, and measurement of problem areas. Inventory management problems to avoid Tracking inconsistency Manual inventory monitoring procedures across several apps and spreadsheets are inefficient, redundant, and prone to errors. Therefore, it’s better to have a centralized inventory management system with accounting features. Warehouse performance Receiving and put away, picking, packaging, and shipping are only a few of the measures involved in inventory management controls at the warehouse. The task at hand is to complete all of these tasks in the most effective way. Inaccurate data You must know precisely how much inventory you have at any given time. Gone are the days when inventory could be counted with all hands-on deck once a year. Changing demands Customers’ demands are continually changing. Holding too much inventory could result in too many left-over while keeping too little could prevent you from fulfilling customer orders. Besides a coherent fulfillment strategy for core products, using technologies to execute an inventory plan can help compensate for fluctuating demand. Visibility issues Incomplete, incorrect, or delayed shipments might happen when inventory is difficult to recognize or locate in the warehouse. Therefore, finding the correct merchandise is critical to ensuring smooth warehouse operations and positive customer interactions. Manual documentation Inventory management via paperwork and manual processes is no longer efficient. Neither does it scale well across several warehouses with a lot of inventory. Stock with a problem Specialized care and storage plans are needed for perishable and fragile stock. On the other hand, high-value inventory necessitates special loss-prevention measures and inventory controls. Production Planning Missteps Production planning is essential for avoiding delays and cost overruns. It can affect revenue predictions and project scheduling if done incorrectly. Expertise deficit Finding experienced warehouse managers who are up to date with technology and can develop inventory strategies might not be easy. Adding a slew of new features to the inventory management software isn’t enough. After all, you’ll need competent leadership. Communication issues Collaboration and communication are essential. In other words, it’s far more challenging to detect inventory patterns and find ways to change when departments are apathetic about sharing information. Inefficient processes Manual inventory management methods are good enough when there is only one warehouse location with a limited amount of inventory. However, inefficient, labour-intensive, and low-tech standard operating procedures become inventory management problems as sales volume and inventory grow. Insufficient software Inventory management software must integrate with the current business process platforms in order to accommodate complex logistics. Another challenge is to choose among thousands of inventory management solutions and master a slew of features.
Groomers Pro: Leverage Inventory Management With Atom8
About Groomers Pro Groomers Pro has been serving the professional groomer and dog show enthusiast since 2008 and is the proud distributor of grooming products for Chris Christensen, Nature’s Specialties, Crown Royale, Artero, Wahl, Andis, and many others. The need for automation When the COVID-19 pandemic hit, the grooming industry was particularly hard hit – bottles suddenly became hard to source, with hand sanitizers and hand soaps taking priority. For Groomers Pro, suppliers could not fulfill purchase orders and products started going out of stock. Luckily they had installed a back-in-stock functionality, with their email marketing platform. This allowed customers to be added to a waitlist and receive an announcement when the item is replenished. To promote the waitlist availability, Groomers Pro’s staff were manually adding the promotional label “JOIN WAITLIST” to each out-of-stock item, and also manually removing the label when the product had arrived back in stock. The problem, however, is they were never sure which products were in or out of stock. As a result, sometimes the product never had the “JOIN WAITLIST” promotional label added, or worse it never got removed. Potentially, customers could receive an email stating that a product was available, but the “JOIN WAITLIST” label was still visible on the website. It was not clear if the product was available to purchase. There was the potential for confusion and also the loss of sales. Groomers Pro needed to find an automated solution for this issue. This is when they came across Atom8 on BigCommerce. At first, they’re generally worried about the effectiveness for this was their first experience with an automation platform. Yet, Atom8’s performance indeed exceeded their expectations. The Atom8 solution One of Atom8’s features is to auto-publish labels on predetermined rules, dates, and times. With this, whenever the inventory level lowers to a certain threshold, the system will automatically add the label. Customers then are aware that a waitlist is available if they want to purchase the product in the future. Later, as soon as the stock level is updated in the store backend, the label will be automatically removed. Simultaneously, by integrating Atom8 with their email marketing platform, Groomers Pro’s customers can still receive an announcement about their waitlist order. This is a perfect add-on to their previous solution. Besides, with a drag-and-drop dashboard and prebuilt templates, it didn’t take the team much time to get acquainted with the app. Now the process is fully automated and timely. Atom8 has positively transformed their work process. Potential future developments With Atom8 in place, Groomers Pro is freed from worrying about incompatible product labels. In addition, the Atom8 team is always responsive should they encounter any problem while running on the app. Operating strongly with the assistance of Atom8, Groomers Pro has now been able to serve even more customers. As stated by the Groomers Pro team: “If you are looking for a BigCommerce App to help with automating a tedious, problematic task, look no further than Atom8. Responsive (yes they provide support!) and helpful, at last, an app to rely upon.”
Inventory Management Challenges for Online Stores
Managing inventory effectively can be challenging, especially for eCommerce retailers with an omnichannel strategy. eCommerce businesses come across various inventory management challenges every day. In order to maintain sustainable growth, they have to find an out-of-the-box solution to streamline the process. In this blog, we’ll outline the five toughest challenges faced by e-commerce entrepreneurs and how to deal with them effectively. Inventory management challenges faced by online stores 1. Unqualified staff The most common mistake businesses make when it comes to inventory management is to hire unqualified staff to carry out the tasks. Underskilled staff is incapable of evaluating suppliers, preparing the proper documentation, making correct forecasts, purchasing new inventory, or handling inventory. As a result, your inventory management system becomes reactive rather than proactive. This might lead to unreliable system information, high levels of expired inventory, build-up of obsolete inventory, and over or understated inventory valuation. Inventory management issues will arise because of incompetent staff, and it will be destructive for your business. 2. No KPIs or too many KPIs KPI stands for Key Performance Indicator. An inventory management KPI is a metric that a company uses to analyze its stock management efficiency. Using too many KPIs may confuse your staff about the most important aspects to focus on. Meanwhile, no KPIs will cause stockouts or result in excess stocks. Either case would adversely impact a business. There are many performance KPIs that a company can use to optimize inventory. Still, it is vital to choose the right metrics for your business for inventory management issues that can decrease the efficiencies and dig into your profits. 3. Manual management process Another challenge faced by e-commerce companies is a manual management. It is possible to track and manage stocks manually in the early stages of an e-commerce business. But as the business scales, managing inventory manually becomes more and more complex. As the company grows, paperwork and other manual processes turn out to be tedious and burdensome. Automating the inventory management process not only helps you save time but also limits errors caused by fatigue. 4. Deadstock When it comes to inventory management challenges, deadstock refers to a product that has not been sold and keeps lying on the shelves for a longer duration than anticipated, and the chances of it getting sold are very weak. In the absence of good inventory management, businesses often end up stocking excess inventory. Deadstock might be the result of poor forecasting, lack of demand, over-ordering, etc. If not tackled properly, it would lead to huge losses to a business. 5. Irregular stock tracking To maintain an accurate picture of the stock, it is important to count your stock regularly. It helps you to figure out any discrepancies between the book and actual inventory. There are times when un-trackable stock such as exchanges or pilferage are not entered into the system. This type of error would cost you tremendous time and effort to fix. Therefore, a frequent stock audit is highly necessary to ensure sufficient inventory. Back up your store with BackOrder BackOrder allows users to assign any product to a backorder status when the inventory level reaches a certain threshold. This means customers can still place an order for out-of-stock items and have them delivered later. In addition, you can set up the system to notify your staff whenever a new request is submitted, preventing you from missing out on any potential customers. What’s more, BackOrder can now be integrated into Atom8. This creates a centralized management system without you going back and forth between different platforms. Streamlined Backorder Management Atom8 enables seamless management of backorders by automatically tracking and updating inventory levels in real-time. This ensures that customers are promptly notified of product availability and allows for efficient handling of backordered items. Optimal Inventory Planning By leveraging Atom8’s advanced forecasting capabilities, you can anticipate demand for backordered items and adjust inventory levels accordingly. This proactive approach helps prevent stockouts and ensures timely fulfillment of customer orders. Enhanced Customer Communication With Atom8, you can automate communication with customers regarding backordered items, providing transparency and reducing customer inquiries. By keeping customers informed throughout the backorder process, you can maintain trust and satisfaction. Integrated Order Fulfillment Atom8 seamlessly integrates with your existing order management system, allowing for streamlined order fulfillment processes. Whether fulfilling in-stock or backordered items, Atom8 ensures accuracy and efficiency throughout the order fulfillment process. Conclusion In conclusion, overcoming inventory management challenges requires a combination of strategic planning, process optimization, and leveraging innovative solutions like Atom8 and Backorder app. By addressing these challenges head-on and implementing effective inventory management strategies, online retailers can optimize their operations, minimize costs, and deliver exceptional customer experiences.
Top inventory management techniques to implement in 2021
Inventory Management is a way of controlling and tracking the inventory orders, their storage, and usage. Inappropriate inventory management leads to the working capital crunch, increase in storage cost, more idle time. Consequently, it causes waste of labor resources, supply disruption, leading to unsatisfied customers, and sales reduction. Therefore, following inventory management techniques is unavoidable to ensure an effective stock supply. Essential inventory management techniques Just in Time (JIT) Just-in-time is an inventory management technique involving only the right quantity available at the time of production. Precisely, it means maintaining accuracy. This is a technique requiring efficient timely suppliers, proper planning, and timely inventory arrival for the orders. JIT is appealing as it slashes costs on shipping, warehousing, insurance, and others. However, it is risky to stay always perfectly predictable. Having access to timely fashion helps to stay competitive and real-time analytics help optimize operations. JIT, the inventory management cloud-based system offers clear visibility from anywhere into your inventory. Backordering Backordering is a process that customers place orders, regardless of the stock. It is a practice commonly used by retailers when there is a surge in demand. Backorders are a way of taking orders, receiving payments for the products that are out-of-stock. Enabling backorders is an indication of increased cash flow and sales. It gives flexibility for the small businesses, while the risk of overstock is less. However, it also includes the customer dissatisfaction risk to wait for a longer time. One of the relatively simple inventory management techniques is backordering. It means using this inventory technique; you should match purchase and sales orders. Further reading: Best practices for managing backordered items. Bulk shipments A bulk shipment is comparatively cheaper to ship or purchase goods. Bulk shipments are the predominant inventory management techniques. It is applicable for high customer demand goods. The bulk shipping downside is you have to invest extra money, right from the inventory to warehousing. It may offset the money saved due to stocking huge volumes. Besides, there is the worry of selling them fast. Bulk shipments lower shipping costs, and ensure profitability. Shipping evergreen or long shelf-life products is a great option as bulk shipments. Dropshipping and cross-docking Inventory management techniques, dropshipping, and cross-docking are business models allowing you to ship and sell products that you do not stock or own. It is where the manufacturers or wholesalers produce goods, warehouse them, and take care of the shipping. Dropshipping is convenient as it transfers the shipment details and the customer orders to a wholesaler or the manufacturer to ship it directly to the customers. The same is with cross-docking, where the incoming railroad cars or semi-trailer trucks directly unload materials onto outbound rail cars, trailers, or trucks. Essentially, no inventory holding cost, low startup cost, less risk, and potential profit. There is a possibility of staging the inbound items until the completion of the outbound shipment. It may require a network and extensive fleet for cross-decking. Consignment Consignment is an arrangement where a vendor agrees to give to a retailer their goods without upfront payment. They receive payment only when the retailer sells the goods. The inventory management techniques favor a win-win situation for the suppliers and retailers, provided they share rewards and risks. It calls for a high degree of confidence. It is good to test new products and to know the product performance. The retailers benefit as their capital is not held, while they can return at no cost the unsold goods. It decreases lag times even to restock the products.
Types of Inventory Every Business Should Know
Inventory management is the accounting of items, components and materials used in product manufacturing and selling. This process is often regarded as the classification of types of inventory. The ultimate goal is to maintain a specific inventory level to run the business smoothly. In order to manage your inventory effectively, you need to know what kind of product you are selling. When you thoroughly understand your inventory, you’ll be able to make wiser choices when it comes to the strategy and inventory management software to keep track of them. What are the types of inventory? Typically, there are 4 most common types of inventory: raw materials, work-in-progress (WIP), finished goods, and maintenance, repair, and overhaul (MRO). The categorization is based solely on the stages within the manufacturing process the product is currently in. 1. Raw materials Raw materials are the materials used to create a product. For example, clothes are made of fabric such as silk, cotton, denim, wool, etc. The original form of the material will be completely transformed after the manufacturing process. 2. Work-in-progress (WIP) WIP inventory refers to items during the production process. It includes components, labor, overhead, and packaging materials. For instance, a car consists of the engine, mirror, internal lightning, the event data recorder, etc. In this sense, WIP is the procedure of assembling all these components. 3. Finished goods Similar to the name, finished goods is the completed product that can be sold on the market at a predetermined price. The costs including the labour cost as well as the packaging coming along with it. 4. Maintenance, repair, and overhaul (MRO) MRO inventory is materials used in the manufacturing process but not included in the finished goods. Examples of this are gloves, masks and other safety equipment, cleaning and janitorial supplies, office supplies, etc. How an automation platform helps inventory management? Keeping track of inventory might be overwhelming, especially when you have a lot of products stored in different locations. It’s even more complicated when using outdated methods such as a spreadsheet which you have to fill in manually every now and then. Fortunately, an automation platform can help keep your inventory organized. The app keeps track of the inventory level in real-time, informs you if you need more, and even warns of suspicious orders. It also makes it easier to control which stage of the manufacturing process your goods are currently in. This can all be executed with our Ergo Automation platform for Shopify. With Ergo you can: Keep track of changes in the inventory level when a new order is placed Send an internal notification to order new products when the inventory reaches a certain threshold Send an alert of suspicious fraudulent orders Auto-generate data into a spreadsheet for better analysis Final note Inventory management is one of the major assets for business development, thus it’s very important for owners to understand its meaning and operation. In addition to knowing multiple types of inventory, even the one that is not specifically included in the final product, it is highly recommended to have an automation platform working on it. This can help merchants save time to invest in more impactful decisions and increase productivity.
Best Inventory Management Automation Use Cases
Inventory management is an indispensable part of every retail store. A small mistake within the process can cause disruption to the whole value chain. Yet the inventory accuracy rate within the US is only 63%, which is simply disappointing. Consequently, a lot of store owners have deployed inventory management automation to get rid of human error and save time for more powerful investment. In this blog, we’ve listed 4 ways that automation software has made inventory management more cost-effective and time-efficient. 1. Auto-publish product You don’t have to update new products all the time. However, it is not easy during the holiday season when everything needs to be aboard at midnight, or when you’re operating in another region with a completely different timezone. This would be eliminated with inventory management automation. All you need to do is update the product information on your store and determine the date and time you want it to be published. The app will then take care of the rest and you’ll be free from this tedious task. We recommend using Atom8 – BigCommerce’s top automation platform, to deploy your eCommerce automation workflows. Atom8 has no-code automation, so any store owner can easily eliminate redundant tasks with a simple workflow like this. More: 2. Send notification in case of low stock Your inventory stock changes every time an order is placed. This is why it is so daunting to keep track of every item at a time. If you are unaware of out-of-stock products, you’ll risk dissatisfying your customers and lose your revenue. With inventory management automation, you can tell the system to send your staff a push notification when the stock inventory reaches a certain threshold. This way, you’ll have enough time to reorder while still serving the best of your customers. Especially with BackOrder, your customers can preorder the product and have it delivered right after it is restocked instead of having to wait for the fulfillment first. 3. Auto-tag orders & customers There are 2 reasons why customer segmentation is so important to your business success Therefore, you should always tag and categorize orders right after it is placed. Set up a workflow to tag your customers based on their location, gender, age, order size, and purchase life cycle. This enables you to take special care of each segment and nurture them better. 4. Auto-generate data to a spreadsheet Simply segmenting customers on your CRM doesn’t make so much change without analyzing it. You need to feed your data into a spreadsheet so that you have a better look at it. Thanks to Google Sheets integration, Atom8 can automatically cover all these time-consuming tasks on a pre-scheduled basis, saving you a lot of time and effort. Final note In general, you should never ignore your inventory. Nevertheless, we acknowledge that you might be extremely busy during this turbulent time. Therefore, an inventory management automation system would be an easy way out for you. No more fuzzling with manual inventory counting, you’ll have more time to accelerate your performance.
