![]() This is where multichannel inventory management comes in. ![]() So how does an executive decide how much to order? Does he just go with his gut? To maximize profits, retailers need to supply the right amount of the most popular items, but not overstock on items that they’ll be scrambling to get rid of with blowout sales at the end of a season. Striking a balance can be quite the struggle. The supply chain in itself may not sound complex, but the management process involves ordering just the right amount to meet customer demand. So, what does a more complex inventory management system look like, and why is it important for a growing business? Where the supply chain meets inventory managementĪ retailer’s supply chain covers the whole process of a product as it moves from the wholesaler to the retailer and other middle players to the consumer. The system itself is likely more complex, but it handles all this work behind the scenes, making it easy for you to expand to multiple sales channels. Others eventually choose to adopt an inventory management system that can handle multiple sales channels – one that can automate all the grunt work. They get overwhelmed with these logistics, and as a result, lose focus on strategy and creativity. Unfortunately, many business hit a slump at this point. To generate any reports on intelligence to inform your strategic moves as a business, you incur a significant delay because you have to wait for an employee to handle these logistics manually. You’d have to manually add up all your sales from each spreadsheet. You want it to be a seamless transition, but if you were to try to do this with your existing system, it would look a little something like chaos.įor example, you’d have a different spreadsheet documenting the stock coming in and out of each sales channel (your online store, your consignment stores, etc.). It’s likely that you’re managing your inventory through Shopify, which worked perfectly when you wanted to only sell online.īut now, you think it might be lucrative to open up a physical store or other distribution channels. The big question is, what happens to bring you from stage 2 to stage 3? This is where you face a major decision. Inventory Management for multiple sales channels You’re running an efficient business with multiple channels.The decisions facing you are high level – you have softwares that you love – handling all the details so you can focus on what’s important. Maybe you move from selling on Instagram or a blog site to using a platform specifically for eCommerce like Shopify to set up a real store.ģ. ![]() You’re realizing that your side store has more potential than you thought. You have some sales from friends and family, but no real traction yet.Ģ. As in, you’re not expecting much to come out of it. If you’re an eCommerce retailer, you probably fall into one of three categories.ġ. Let’s welcome Jacqueline in our blog, and learn from her invaluable experience! Today’s article on Inventory Management: The key to the Growth of your eCommerce Business is brought to you by Jacqueline Wibowo – Marketer at Tradegecko
0 Comments
Leave a Reply. |