Stock is at the heart of any e-commerce business. It is the product you sell to your customers and it is imperative to your business’s success and performance that you deliver it to them on time and in excellent condition. If your business fails to do these two things, it leads to unsatisfied and unhappy customers who won’t return to you with their business.
To be able to deliver stock on time and in the best condition it can be, strong inventory management is necessary, but, by many business owners, it is perceived as time-consuming to implement and they simply rely on their employees to execute stock control and deliveries alone.
Inventory management is extremely beneficial for all e-commerce businesses, but especially growing ones.
What is Inventory Management?
Inventory management is a specific strategy or structure that is employed into a business to deal with how stock is received, stored, picked, and delivered. A common misconception is that it only deals with stock you sell. It also covers taking stock of your company’s assets, labor and even cash.
A strategy like this covers and organizes a great deal of your business.
What Can it do for Your Business?
First and foremost, managing your inventory means it will be properly organized, easier to work with and you will know exactly what stock your company has, but it also has some other benefits that help with a smoother running of your business.
Reduces Surplus Stock
If you invest in a large amount of stock, a fraction of it can end up sitting in your inventory unused and losing you money as a result. An inventory management system will help you to reduce stock wastage and increase the efficiency of your stock storage.
Aging stock that sits in your inventory without being sold is a result of poor inventory management, but a strong solution will ensure that all of your stock is used in a timely fashion.
When you keep a close eye on your stock levels with an inventory management system, you will have clear visibility on the amount of stock you have and where it is located, which makes it much easier to deal with upcoming or even unexpected orders you previously would not have been able to fulfil.
If you know how much stock you have, you can account for replenishment stock if and where you need it.
An item that has been damaged or shipped incorrectly will inevitably lead to an upset customer. With a managed inventory, you can prevent situations like this from happening altogether because stock has been accurately labeled, tracked and handled. Items will be verified at various stages of the shipping process to ensure that the item is always correctly shipped.
Organizing and managing stock inventory results in a better run business all around. It increases customer satisfaction, reduces stock wastage, improves accuracy and allows you to plan for orders as they come in because you know exactly what your stock levels are.