Inventory management is crucial for any e-commerce platform. With the right inventory management strategy, you will know how well your company is performing and how satisfied your customers are. Without an inventory management strategy, you risk losing your valuable customers or investing in resources or products that aren’t needed by your business.
So how do you analyze if your current inventory management strategy is foolproof and helps your e-commerce business run effectively? Let’s find it out.
3 Signs You Urgently Need A Revamp For Your Inventory Management Strategy
- You Are Still Stuck On Using Spreadsheets
Spreadsheets are great. We agree with that. But they need to be more efficient to help you with your inventory management process. It’s too much work with very little output, and that’s not a healthy way of spending the time you have in hand.
Instead of spending hours entering everything into a spreadsheet manually, invest in good ERP (Enterprise Resource Planning) software.
You get to manage everything, every minute process, and exchanges that happen upon receiving the order until the customer receives the product. In addition, you will be able to manage and overview the supply chain activities.
You can even incorporate the power of advanced radio frequency systems wherein the warehouse activities are automated, and everything is logged into the central inventory system on time. It is highly efficient and recommended for companies that dispatch thousands of orders daily.
- You Are Not Able To Forecast Challenges
As an e-commerce business, you will have tons of data lying there, all useless. It is where you can enable the power of data analytics and gain control of your current inventory management system. An effective inventory management strategy helps you forecast challenges, thereby giving you time to armor up and prep for it.
You would then be easily able to predict any delays coming your way, and you will already be thinking of alternatives. The outcome? Your customers are always satisfied as their orders reach on time, and your warehouse always runs smoothly.
However, predictive data analytics needs experts; therefore, you should start by investing in human resources.
You get on-point predictions in your sales departments which can be used to present your products in a way that allures your customers. Further, the data will also help you run targeted digital marketing campaigns to increase your sales and raise curiosity around your products.
- You Haven’t Made Use Of Any Mobile Apps For Inventory
Mobile technology and applications are a godsend for sales executives. They get real-time access to the inventory details and the status of the shipments, which helps them better serve customers and ensure customer satisfaction.
The right mobile apps that link to your ERP software help the executives be in control of the whole inventory and delivery narrative and help warehouse workers take the necessary action – anytime from anywhere.
For this to happen, make sure the ERP software you are about to invest in has mobile access and allows multiple access sessions at a time. Further, ensure they integrate well with other applications you are already using for the inventory management process.
These three signs may be one of many problems with your current inventory management strategy. As there is more than a one-fits-all solution, your role is to constantly evaluate your system and see if you can control the narrative regarding the inventory and supply chain process at all times.
If you believe you can manage all this efficiently without losing sight of your business plans ahead, congratulations, you have an effective inventory management strategy in place. That is the goal. Good luck with finding a solution that fits your business.