Effective inventory management is key to the success of an e-commerce business. It helps keep track of the inventory and stock items to ensure that every order is fulfilled on time. A well-functioning inventory management system is essential for the accurate order fulfillment as this can further increase customer satisfaction and give your business a competitive edge.
A highly-efficient inventory management system can also add convenience to the order fulfillment process and increase productivity. With a proper system, you can avoid scenarios like being out of stock and ensure that every customer gets his or her order. Read on to know more about the inventory management system and the tips you can use to improve its functionality.
What Is Inventory Management?
Inventory management is a critical part of supply chain management. It involves storing and keeping track of the inventory. Under this system, everything is supervised and recorded. From the number of products coming into the warehouse to the products leaving the facility, everything comes under the purview of the inventory management system.
The primary goal of this system is to keep a tab on the stocked goods. The ERP or Enterprise Resource Planning system involves various types of business operations. However, the inventory system involves only one crucial part of the supply chain operation. Both e-commerce companies, as well as walk-in stores, use inventory management systems for maintaining a well-functioning business.
Why Is Inventory Management Important?
Improper inventory management can hurt your business, as mismanagement of inventory leads to missed sales that further causes the business to lose customers. That is why maintaining a robust inventory management system is critical. Not only does it ensure the proper functioning of the entire business, but it also reduces inventory costs and improves efficiency.
Tips For Effective Inventory Management
- Organize The Products
A well-organized inventory is essential for the smooth functioning of the business and helps you maintain optimum stock for order fulfillment. The multi-layered process of setting up inventory and arranging them in the proper order is no easy feat. There are various factors that need to be taken into account for proper categorization of the products. For instance, the inventory management system of Shopify facilitates the efficient categorization of the products. The robust automated inventory system efficiently separates the products according to their type, price, and other factors.
- Assign Barcodes
Assigning a barcode involves assigning numbers to the products. It helps keep track of the inventory, prevents sale errors, and ensures timely fulfillment of the orders. From creating new barcodes to assembling the existing ones, the ideal inventory management system will ensure that the entire process is hassle-free. The wireless barcode scanner feature of Shopify’s inventory management system eases the overall work and makes it more effective and productive.
- Track Stock Counts
Keeping a count of the stock that your business has on-hand is essential for the proper functioning of the online store. Order fulfillment is a commitment that all e-commerce businesses need to follow to ensure ultimate customer satisfaction. Not tracking stock counts could hurt your business and drive customers away. This is where a tracking system can make a world of difference. Shopify’s inventory management is equipped with an efficient tracking system that helps you keep a record of the stock counts. With this system, you can maintain optimum stock and ensure the smooth functioning of your online store.
Shopify’s inventory management tool helps you automate ordering and inventory tracking
- Apps And Plugins For Inventory Management
Apps and plugins are helpful tools that can help you manage the inventory management system with ease. Shopify’s app store has a myriad of apps and plugins that can simplify the entire management of inventory. Whether you want to set up stock reminders or facilitate the sale of the products through various channels, the app store of Shopify lets you handpick the app and plugin that best suits your businesses’ requirements. Take advantage of the abundance of apps and plugins offered by Shopify and increase productivity with the help of the inventory management system.
- Gain Proper Insight into Your Inventory
Every online business owner should possess proper knowledge about the inventory levels. From the best-selling products of any category to the least popular items in stock, it is essential for you to be aware of the things going on in the inventory. The ideal inventory management system helps business owners gain insight. For instance, Shopify’s inventory management system provides insight into the inventory and helps owners come up with marketing campaigns that can help boost overall sales.