At any point in time, a fulfillment center should have the right amount of stock in their inventory, so an online business will never have a deficiency in product count, but it is also important not to have surplus products on shelves either to have storage cost at an optimized level. Implementing an inventory management process can help in tracking the exact number of stocks in real-time. The best fulfillment center, such as Depoter, would also ensure the calculation of re-order point (inventory forecast) considering the basket size and the number of orders for each of their clients.
What is Inventory Management?
Good online businesses require good organization. Inventory management is a key component of supply
chain management. It is necessary for any business that is involved in buying or selling products.
Stock improvement is the path toward keeping up the ideal proportion of stock expected to fulfill
orders, keep storage costs low, and avoid ordinary stock issues, for instance, stockouts, and
over-stocking. In many cases, businesses sell their product not only through one channel but through
multiple sales channels like Amazon, Noon, Carrefour, Shopify, etc. In such cases of multi-channel
fulfillment, the fulfillment center needs to ensure the stock count is synced between all the
different sales channels to avoid any mistakes.
Stock improvement is an online business best practice and framework that ensures stock control is supervised capably via completing gadgets, and methods to follow stock dynamically. Inventory management supervises the flow of goods, from manufacturers to warehouses to the point of sale. It can be a very complex process especially for large organizations.
To keep the right amount of goods on hand and fulfill customer demand but stay profitable, several methodologies are used such as stock review, just in time methodology, and ABC analysis methodology and warehouse management system (WMS).
How inventory management is done
• Record accuracy: Incoming and active record keeping should be exact and stockrooms ought to be secure. It is important to make precise decisions about orderings, scheduling, and shipping.
• Cycle counting: Stocks are counted and updated on a periodic basis. This is often used with ABC analysis
• ABC analysis: under this method, you classify the inventory into three categories as A, B, and C. These categories are based on inventory value and cost significance.
• Stock review: is a regular analysis of stocks versus projected future requirements. This can be done through a manual audit of stock or by utilizing .
Depoter’s inventory management system connects the multi-sales channel orders and warehouse inventory of an online business. As orders come in, Depoter helps you pick, pack, and ship those orders with 100% accuracy. Once the products have been shipped the shipped orders will be deducted from the system, these stock changes are then updated across multi-sales channels, so that everyone is on the same page with what an online store has for sale. This way Depoter helps online merchants by saving time and money in managing and storing inventory and make quick delivery possible which can turn into a happy customer and reducing customer retention costs.