![]() In this case, you may set your reorder point at 110 units (including a 10% buffer, just in case) to ensure you don’t run out. Otherwise, it can deplete over time, making having it pointless! Set Reorder PointsĪ reorder point is an inventory level that indicates that it’s time to make a new order.įor example, you may know that it takes an average of one month to sell 100 units of a product – and that it takes your supplier, on average, a month to deliver new stock. It’s crucial to monitor safety stock as separate from your normal stock. However, a smarter approach involves assessing trends through your inventory management system, and creating a calculation that can more accurately predict your store’s needs. Many store owners rely on gut feel or a set percentage, such as 20% or 30%. ‘Safety stock’ is extra inventory that an ecommerce business carries to help protect against external factors, such as growth in customer demand or extended lead times by suppliers.Ĭalculating how much safety stock you need can be tricky. However good your inventory management system is, there’s usually room for error – especially when humans are involved at any stage.īy scheduling regular stock audits, you ensure that these errors don’t have time to snowball, and potentially become harmful to your business. Regularly auditing your stock ensures that your current records are correct. ![]() Inventory Management Softwareīelow, we’ve outlined some top tips to help you ensure your ecommerce inventory management is operating at peak performance. With multiple people inputting information, they can also become confusing and inaccurate over time. As they’re not built specifically for inventory management, they’re often more complex than dedicated software, and lack the same functionality. However, spreadsheets also have their downsides. Plus, this option is usually far more cost-effective than specialist inventory management software. Cloud storage also ensures the safety of your documents, protecting your important inventory management records from getting lost or damaged. In turn, this makes multiple site management significantly easier. When using spreadsheets that are connected to the cloud, multiple employees can access and work in the spreadsheet at the same time. While it’s not the best option, there are several benefits to this method – particularly when compared to manual management. Spreadsheets – such as Google Sheets and Microsoft Excel – are commonly used ways of managing ecommerce inventory. For obvious reasons – including human error, the ease with which paper can be misplaced, and the propensity of pens to run out of ink – this isn’t the most efficient or secure method of inventory management! Spreadsheets You might be surprised by how many stores – despite leveraging advanced technology to sell online – still use manual methods (such as pen and paper) for recording their inventory. In this section, we’ll explore some of these options – along with which one’s going to work best for you. Having the right tools is the first step to ecommerce inventory management success.
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