Product stock management becomes more difficult as your online store expands and your logistics operations become more complex. The global economic environment of the last two years, as well as the supply chain crisis, have had a significant negative impact on the availability of stock for certain types of goods.
Improper inventory management can result in significant losses for an online store, but taking preventative measures will help your online store avoid dissatisfied customers and a highly stressed operational team. In this article, we will discuss five ways in which your online store can address the common issue of stock availability during times of shortage.
- Use a reliable WMS for inventory management
When it comes to managing inventory across multiple warehouses, it is critical to implement an inventory management system that provides both data visibility and real-time tracking.
Inventory management software allows you to automate inventory tracking tasks, saving time and reducing human error. Furthermore, the right software computes the optimal amount of stock you require based on previous stock trends and purchasing behaviour.
- Anticipates the risk of product depletion
When there are supply issues, you must be aware of the items in stock that are most “requested” by customers, as well as when they are likely to run out and how long it will take to replenish your stock.
With this essential information, you can develop a strategy to help anticipate the deficit and intelligently allocate the remaining stock.
- Enhance stock forecasting capabilities
Forecasting can be difficult in a volatile market, but it is critical to obtain the most accurate calculations possible. Use data on current stock levels, items on order / in transit, demand forecasts, and delivery times.
This way you will be able to calculate:
- How many days of stock you have until you run out;
- The total number of days you will have the stock unavailable for;
- The total number of units you will have sold out.
- Prioritize the right stock
To improve stock availability, conduct your own analysis to determine the best-selling items. To prioritize their management, check forecasts, inventory levels, and delivery times more frequently.
There are some online stores that monitor the number of sales of a particular item. This helps to avoid over-storage of high-value but difficult-to-sell items. As a result, make sure that items that are frequently sold can be easily identified.
- Diversify your network of suppliers
Many stores that have had supply issues have realized that it is better to buy their goods from more than one supplier. As a result, diversifying the supplier network increases the chances of obtaining better deals. When comparing supplier costs, use criteria that are relevant to your purchasing needs. These could be their delivery times, unit prices, and/or minimum order quantities.
Conclusion
We know that the accuracy of the information in the supply chain has a significant impact on the profitability of an online store. Furthermore, because improving stock merchandise is the first step toward meeting industry challenges, you can benefit from efficient data synchronization for your online store by outsourcing e-fulfilment services. As a result, through an e-fulfilment provider like Simplify, you can receive access to an integrated solution that includes the tools needed to receive real-time data on stock management and replenishment.