Not only should you have safety stock on hand, you’ll need to make sure you’re not letting inventory level dip to quantities that will affect your supply chain. But it’s a delicate dance: you need to have enough extra stock for a rainy day, but not so much that you’re clogging the warehouse with overstock. Having safety stock will allow you to stay afloat in the event of unforeseen circumstances. The pandemic has shown us panic buying is a real phenomenon that can have serious implications. Tip #3: Make sure you have safety stockĪs a small business owner, you should always expect the unexpected. Again, Google Trends and Google Analytics offer key insights to this effect. You’ll also want to consider seasonality-like holidays and special events-and plan accordingly. Inventory forecasting allows you to adjust how you order inventory year after year as global trends wax and wane. Forecasting sounds complicated (perhaps even impossible) but it’s really a matter of looking to the past to predict the future. Once you’ve understood the fluctuating levels of interest in your product, the second step is to forecast future demand. Both Google Trends and Google Analytics provide insights on demand, including what types of product pages attract your customers’ attention and which ones are popular (and thus require more stock). By looking at historical trends-such as demand in your product category over the past 12 months-you can gauge when interest peaks during the year. This will help you gain a better grasp of when to order more or less inventory. The first step of inventory management is understanding how demand fluctuates for your basic product category over time. By managing inventory level with the diligence and care that you’ve approached all other parts of the business, you’ll be well-poised to succeed. Given that 43% of small businesses still rely on manual methods to manage inventory, it’s not surprising that most pitfalls related to ecommerce stock management could have been avoided. Forecast demand so that you don’t run into any surprises.Track your sales, from manufacturing to shipping to when the order is in your customer’s hands.Avoid over-ordering and pile-ups in your warehouse.By paying close attention to inventory levels, you’ll: Businesses are stocking at unprecedented levels, meaning getting a handle on inventory management is more crucial now than ever. Since 2013, the number of operating warehouses has increased by over fifteen percent in the U.S.-that’s a total growth of over 2,400 new facilities. Why ecommerce inventory management matters To build a profitable and scalable e-commerce business, Founders will need to master the ins and outs of inventory management. But poor inventory management can lead to complex challenges that even the most seasoned entrepreneurs struggle to overcome. As a small business owner, inventory management probably doesn’t top your list of favourite responsibilities (and if it does, congratulations-you’re already ahead of the game!) The truth of the matter is that e-commerce inventory management often falls through the cracks, particularly if you’re a new Founder.
0 Comments
Leave a Reply. |