For many sellers who have just started to do Amazon, inventory management is important. Orderly inventory management can improve the delivery efficiency of the seller, save time costs, and thereby enhance the customer experience. It will affect subsequent procurement decisions, product sales, and user experience.
Although management inventory is so important, there are many small and medium sellers, factories will not query inventory. Inventory query, measurement and prediction should be put in the first place, even before the customer service, after all, this relates to order fulfillment, if inventory management is chaos or difficult to query, it is difficult to timely delivery, complete orders, caused a lot of impact on the consumer shopping experience, serious even lead to the ODR is too high and seal shop.
How do you manage inventory correctly? The following are the three principles for successful management of inventories:
1. understand the inventory cycle
The inventory cycle is a basic indicator of the health of the product sales, that is, the time required for unit inventory to be sold. When the seller has a clear understanding of the inventory cycle of all products, it can accurately judge and sense whether the product is hot, which point of time better for sell, thus making a precise inventory procurement budget.
For example, if a warehouse inventory takes weeks to sell, then the seller can do a cost / benefit analysis to see if the profit from the sold product can cover the cost of the warehouse. Keep in mind the inventory cycle, allowing the seller to clean up the product quickly and firmly, otherwise the product may remain in the warehouse all the time.
Focus on the inventory cycle can also allow sellers to make forward-looking decisions. Popular product inventory turnover is generally fast, so you can make informed decisions about future purchases based on realistic sales and previous inventory cycle indicators.
2. understand the industry benchmark
If the store products are health, beauty, luxury clothing and household items, the seller should compare their own inventory management indicators with the indicators of same catagory.
If inventory performance is reduced due to a lack of competitiveness, it is necessary to redesign the process, re-evaluate partners and introduce new improvement strategies. The company's economic performance depends on decisive measures, which will affect the experience of brand users.
Inventory management is often an easy to ignore for the newly developed e-commerce brands. Enterprises should ensure that team personnel understand the inventory quantity in real time and reflect on how to keep inventory performance in line with industry standards. enterprises can also solve this problem by working with the e – commerce logistics solutions company or other logistics experts who provide inventory management tools.
3. the inventory data is updated timely
The inventory data is timely and must be updated in real time. If the number of SKUs is large, inventory data management may be a big challenge.
Sellers should understand: how does the product classify is the best? Which stock point to deposit what kind of product? How long will it take for each product to package and deliver? Which express line and logistics operation can deliver products to consumers?
When inventory data is updated and can be acquired in real time, companies are more likely to make informed decisions, and when inventory data can indicate the value of a partnership, it is easier to find new logistics providers and suppliers. Without clear, recently updated inventory data, the business is prone to growth stagnation or even a decline.