Why inventory management is crucial for ecommerce success
Published May 24, 2018
Ecommerce businesses establish lasting relationships and achieve growth by making it as convenient as possible for customers to obtain the products they want. The processes a company employs to build up, store and ship out its inventory make a huge difference in achieving those results. Giants like Amazon have turned their inventory management techniques into finely honed tools for connecting consumers with a wide variety of items as fast as possible.
An efficient, transparent supply chain is essential to competing in this high-speed business environment. Organizations must implement inventory management solutions that make it possible to meet the expectations of consumers and reach long-term objectives for growth. That's why many ecommerce companies turn to an experienced partner to integrate inventory management solutions with warehousing and shipping services.
Gain real-time insights into inventory
"The better a company knows its own inventory, the more effectively it can serve customers."
The better a company knows its own inventory, the more effectively it can serve customers, strategize for the future and act to improve operations. A great deal of complex decision-making goes into all of these aspects of inventory management, and businesses rely on detailed visibility into their own warehouses. An order management system with integrated inventory tools empowers an organization as it handles routine processes like receiving, cycle counting and reordering.
With a powerful solution in place, it's simple for ecommerce businesses to check product availability, allocate items and reduce inventory as orders come in, keeping records up to date. The system can create pick tickets and locate particular items in the warehouse, providing directions for securely packing them.
Communicate with customers
Relationships with customers are the foundation of any successful ecommerce organization, and agile inventory management has an important role in strengthening those bonds. Offering real-time updates on the availability of products starts a transaction off on the right foot. Email updates when an order is on its way keep customers in the loop and ensure that they know where to go if they have any further questions or needs.
Get expert help with warehousing and shipping
If an ecommerce business is growing, that means it's developing a larger inventory and sending out more shipments on a daily basis. The logistical demands and expenses can quickly start adding up for an organization that's relying on its own infrastructure. Warehousing and distribution services that are directly tied to an OMS can keep everything functioning smoothly as a company continues to expand.
A partner who has arrangements in place with major shippers can save ecommerce companies a lot of money and some major headaches. Returns processing and reverse logistics are particularly significant challenges. Companies benefit from working with an organization that has the resources to manage repacking products so they can be returned to the inventory or recycling them as appropriate.
Streamlining and gaining insight into the supply chain is a competitive advantage in the fast-paced world of online retail. A knowledgeable partner with vast experience in assisting with inventory and order management can empower an ecommerce business. SFG provides organizations with the full range of solutions they need to form connections with customers and scale up effectively.
