7 tips for inventory management in warehouse you shouldn't miss!
Importance of Inventory Management for eCommerce Practitioners
Stock management of eCommerce sites means managing a high-speed database and integrating hundreds of thousands of suppliers. For an eCommerce fulfillment company that receives many orders, and enters and exits products every day, warehouse and inventory management is a field that needs to be specialized.
Mastering inventory management can be daunting, but doing so is increasingly important when considering your business's profit margin. Inefficient use of storage space is an additional cost. It is also risky due to the shelf life of the products, apart from the increase in excess inventory cost. Missing stock causes sales cancellation, customer dissatisfaction, and loss of prestige for your company.
7 Tips for Inventory Management in a Warehouse
So, in the following passage, we have listed 7 tips for you to avoid some of the most commonly made mistakes among beginners and professionals alike.
- Overstock:
Don’t overstock! It makes sense to stock up on bestsellers. But an effective warehouse management solution requires avoiding the excess stock. Have you heard of the "first in, first out" principle? You should apply this logic for effective stock management. Every product has a shelf life, while in durable products, the packages of the waiting products may get old. You should be careful not to overstock and sell the products that enter your warehouse as earlier as possible.
- Understock the popular items
As you can imagine, the worst experience for your customers will be to receive the news that a product they purchased is out of stock. Effective inventory management in warehouses ensures that a warning is given for products that are out of stock and that products that are out of stock are withdrawn from sale. Analyze a product basis and create a lower stock limit so popular products do not have stock problems.
- Optimize your warehouse layout for the efficiency
Clever use of the warehouse can be achieved with an effective warehouse management solution. However, there are many issues that you need to pay attention to, such as the shelf systems of your warehouse, product entry and exit, and the selection of areas where fast and slow-selling products will be stored.
- Simplify your OMS
An order management system is a technical tool used by e-commerce companies to manage orders and their integrated inventory. It ensures a complete and fast operation process by recording the order management, warehouse and inventory management process. The sales of the companies that successfully manage the order are increasing on a regular basis.
- Train your employee until they become expert
For effective inventory management in warehouses, all employees must have a good command of the technical tools and know how the warehouse and shipping processes are managed. However good the software you use, it can only be used to its maximized efficiency in the hands of the experts. Therefore, it is crucial to train their employees to be experts in the business and to update the information periodically, especially for the eCommerce fulfillment companies managing operations internationally.
- Keep your customers in mind and ask for feedback
Customer feedback is the most valuable inventory to measure your service quality. In which subjects are you good? What are your mistakes? What are your customers' positive and negative thoughts about you? The answers to all these questions can be found when the feedback is examined.
- Outsource Your Fulfillment to Experts in Some Cases
Fulfillment is the most complex process, especially for eCommerce businesses. As customer expectations and competitors' innovative services change, you need to renew your warehouse and inventory management and be proactive constantly. For small companies and start-up businesses, this process may be easier to manage. But as your business grows, outsourcing will become inevitable.
When You Need to Outsource the Fulfillment
With Yun Fulfillment's expert team and global network capacity, your stocks are always under control, and your warehouse management is in safe hands. Utilizing its logistics resources and premium parcel direct service of YunExpress, our global shipping network covers 220+ countries and regions on 6 continents, offering our customers the assurance of fast, economical, and quality service, our powerful order management system (OMS) also promises a fast, economical, and quality service focused on 100% customer satisfaction.
Inventory management in warehouses is the core power of Yun Fulfillment. As an eCommerce fulfillment company, we are happy to offer fast and effective solutions to all demands of customers in the entire process from sales to delivery with its expert sales team and customer-oriented service approach. Should you have any question, don’t hesitate to contact us!
