Thousands of businesses were affected by the pandemic, resulting in billions of storage and inventory losses. A well-managed inventory has ripple effects throughout your whole e-business. The time is right to review and optimize your ecommerce inventory management system. This blog will share with you 4 best practices in e-Commerce inventory management.
#1 - First In, First Out (FIFO)
FIFO means that the first products received at your warehouse are the ones you ship to your customers. Every company can use FIFO, especially if they want to avoid storing products longer than necessary. Food service and supply industries use FIFO to reduce waste, especially when perishable items are involved. With Zooloo's DSM SUITE 2.0, you can automate the FIFO to improve quality control and customer satisfaction. Customers are more likely to receive consistent products when old stock is moved out quickly rather than ending up with obsolete items that weren't rotated adequately.
#2 - Dropshipping
A new e-commerce business can reduce overhead costs by using dropshipping and eliminating intermediaries and inventory. As a business owner, dropshipping keeps you away from the product. Orders are fulfilled by the manufacturer and sent directly to the customer once they place an order. Dropshipping has the disadvantage of not offering bulk discounts and having no control over customer experience. Product delivered straight to your customers by the manufacturer.
#3 - Minimum Viable Stock
Maintaining a par level provides a safety net by ensuring a minimum stock supply. Two variables determine the par levels: your products' demand patterns and manufacturing timelines. Zooloo's DSM SUITE 2.0 alerts you whenever an SKU falls below a predefined par level threshold and preset factors. As customer buying trends change throughout the year, you must monitor them closely as they fluctuate considerably. Make constant adjustments to your par levels to satisfy the market. To stock intelligently, you must analyse each product individually, which is why you need a dynamic inventory system such as Zooloo's DSM SUITE 2.0,.
#4 – Analysed Historical Data
Now is the time to use predictive analytics. The most successful organisations reduce uncertainty in the future by utilizing data. Zooloo DSM Suite 2.0+ BI & AI PREDICTIVE allows you to drill down into historical data for individual channels so that you can stock for the holidays (or any other seasonal trend) intelligently. Make your business stronger by analyzing your data using Zooloo DSM Suite 2.0+ BI & AI PREDICTIVE and implementing your findings to make it stronger!
Final Thoughts
You can't put a price on repeat business and word-of-mouth advocacy.
Managing inventory well creates positive customer relationships. Buying things online can be frustrating because items may appear in stock but aren't, or items may differ from what was stated in the description. One negative or disappointing experience is all it takes for customers to bounce from your e-Commerce and look up competitors. The top priority should be fixing anything that sabotages a positive buying experience. Providing prompt inventory updates and shipping timelines with clear expectations will result in more delighted customers.
Get a better start with Zooloo. Our team is happy to assist you with your journey towards digital transformation. You will enjoy immense growth opportunities if you partner with the right service provider. Please contact us at sales@zooloo.asia.
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Tags: #CRM #MicrosoftDynamics #digitaltransformation #B2B #digitaladoption #digitalintegration #digitalsolutions #wholesaletradesector #wholesaletrade #customerretention #ordermanagment #inventorymanagement
