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Category Archives: Inventory Management

Common Inventory Mistakes e-Commerce Startups Make

If you’re new to the e-commerce industry, you may have some concerns regarding setting up an effective web site, finding your target customers, meeting your customers’ needs with your products or services, and providing quality customer service. Among these concerns, the most important aspect is solving inventory management challenges. Inventory management is so important because it affects every other area of your business. Managing inventory can be challenging for well-established businesses, so ensuring your startup is prepared to avoid inventory management mistakes is key to your success. Here are the most common inventory management mistakes by e-commerce startups and how you can get help to prevent these mistakes.

Stocking Too Much Inventory

It may seem like a good idea to have lots of inventory on-hand in case customers want more of your products at a particular time, but since warehousing costs are so high, this can be very expensive. Depending on where your warehouses are located, you could end up paying over $,1,000 a month for a small space. The larger your operations, the more resources and money you need to invest towards storage space. E-commerce retailers need to consider these costs and find a way to properly manage their inventory. An inventory management software is one of these tools. They provide you with the visibility to know which items need more on-hand, and which items don’t, so you can provide what your customers need without taking up excess and unnecessary storage space.

Stocking Too Little Inventory

Too little inventory on-hand can also be a problem. You cannot sell items you don’t have, and if customers are seeking products from your online store, the last thing you want is to have them on backorder and make them wait too long. Over 70% of online shoppers say they would rather buy the same product somewhere else than wait for it to return to stock. If your customers are ditching their carts and going to your competitors to get what they want faster, your reputation and profits will be in deep trouble.

No Defined KPIs

Without key performance indicators (KPIs) it is impossible to know exactly how well your business and your team is doing. Defining KPIs is another solution to reducing mistakes with inventory management. KPIs may include aspects like the number of web site visitors, the conversion rate, or the percentage of direct vs. organic traffic. These statistics are vital to helping you manage your team more effectively. It shows which aspects of your business or personnel are underperforming, so you can address these issues and optimize them.

Irregular Inventory Checks

Manual inventory checks are a nightmare. To do this, members of your team need to stop processing orders in your warehouse to count every single item and ensure that number matches the figures in the system. If your business sells thousands of products, manual inventory checks can be near impossible and can waste valuable time. However, they must be done, which is why implementing technology and inventory management software is your best course of action. Barcode scanners and real-time inventory visibility are two ways to speed up the process and ensure better accuracy rather than using pen and paper.

Hiring the Wrong People

The people you hire will either make or break your business, whether you are hiring for marketing, purchasing, sales, or warehousing. The right team will have the following traits:

  • Physical strength and energy
  • Strong hand-eye coordination
  • Clear sense of integrity and honesty
  • Able to follow instructions and take direction
  • Focused on good customer service
  • Attentive to details

Not Checking Sales Trends

Regularly reviewing your sales data allows you to make more optimized strategies as you move forward. Trends also allow you to predict inventory needs so you stock the right products and make the best use of your warehouse space. Your sales records will show you how often certain items need to be reordered (bestsellers), and when your seasonal spikes are.

Not Updating Inventory Immediately

If your customers often complain that the items they order are out of stock, you may not be updating your inventory as quickly and accurately as you could be. Backordered items are frustrating for customers and you risk cart abandonment. Although it may be difficult to completely prevent backorders, you need to do the best you can to make sure you know which items are low so you can order more and provide for your customers. This is part of offering excellent customer service. Real-time inventory updates help your customers know what you have in stock before they order.

Hire a 3PL Service

Inventory management is essential to a successful business, especially in e-commerce, but it can often be overlooked by startups who may choose to focus more on sales and marketing. Finding the right inventory management system to prevent these mistakes from happening will ensure you avoid major losses in customers and revenue. By teaming up with a third-party logistics company, you can gain access to robust warehouse and inventory management software. These companies are equipped with the tools you need to manage your inventory, get your products shipped out on time, and keep your customers happy.

APS Fulfillment, Inc. cares about our clients’ success. Our professionals will bring you solutions to your fulfillment challenges. We provide services such as real-time inventory management, e-commerce fulfillment, fulfillment solutions, and fulfillment markets. There are endless benefits to working with a third-party logistics company that uses the best quality software systems to manage your warehouse, so if you’re looking for the right company, look no further than APS Fulfillment, Inc. You can contact us by e-mail at [email protected] or by phone at (954) 582-7450.

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Inventory Management Techniques to Save Money

Inventory management save money

When most people think about inventory management, they instantly get a headache from thinking of the overwhelming number of items to count and organize. However, developments in technology have allowed many businesses to access inventory management software that makes this process tremendously simpler. Instead of manually tracking everything, the software records the information and provides statistics and measurable data for you, and anyone in your network that you allow. Are you ready to save money with inventory management techniques? Here are some tips to follow.

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Debunking Top Myths about Inventory Management

Inventory management myths debunked

Inventory management is not a simple task for many e-commerce businesses. You may either have too much or too little in stock or may have difficulties monitoring the movements of your products in and out of your warehouse. Inventory management software can help you prevent problems like these, by automating the process as much as possible. However, there are many misconceptions about inventory management that have led businesses to hold off on including it in their operations. Here are the most common inventory management myths and why this software is so important to your success.

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10 Key Inventory Metrics for Small Businesses

inventory managementProducts come in and out, but you should be in control of that cycle at all times. And if you run a small business or fulfillment company, you have to; your success depends on it.

If you’ve never given much thought to inventory metrics, here are 10 factors to take note of:

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An Overview of Just-In-Time Inventory Management

Just-In-Time Inventory ManagementA vital part of maintaining the efficiency of any business or warehouse is in coordinating the supply-and-demand of your inventory. To avoid overstocking items that surpass the customer demand, it is important for companies to implement a leaner practice that manages production on an as-need basis. That’s where the just-in-time inventory system comes into play.

What Is the Just-In-Time (JIT) Inventory System?

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Maximizing Inventory Management

APSFulfillment_image_100615Inventory management is the system you use to oversee the movement of products in and out of your business. For an e-commerce company, this mostly relates to the flow of products through your warehouse rather than a physical store, but the same principles apply. Numerous inventory management strategies exist that serve to track stock, manage invoices and orders, govern inventory-related accounting, and other elements. Here are some tips for maximizing the capabilities of your inventory management system.

Approach From a Supply Standpoint

Business owners can usually identify roughly how much inventory they have available. Not all can say how many weeks of supply their stock makes up. By keeping in mind how many sales your current inventory can support before being restocked, you can link inventory levels to sales projections. Generally speaking, the ideal inventory level is just enough to match predicted sales until restock arrives along with a buffer in case of sales spikes, late stock delivery, or other complications.

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How to Deal With Slow Moving Inventory

How to Deal With Slow Moving InventorySlow moving inventory is a situation which almost every retailer has to deal with at some point. The good news is that you can prepare for slow moving inventory if you focus on proper inventory management practices. Managing these circumstances carefully saves capital and keeps your profit margins stable.

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Inventory Control Tips When Using Outsourced Fulfillment Services

Inventory Control Tips When Using Outsourced Fulfillment Services As a small or medium-sized business (SMB) owner, thinking about inventory can cause some premature grey hairs. As a fulfillment services company that specializes in inventory management, APS Fulfillment, Inc. understands the stress SMBs go through in trying to properly coordinate and ship product orders.

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How to Manage Growth in Fulfillment and Inventory

APS Fulfillment Services_article_052115Once your fulfillment business is underway, you’ll hopefully begin to see how well you’re doing financially. But many retailers forget that success means being busier and having more chances for your business to get disorganized. Not adapting and learning to manage growth can have severe consequences, especially in today’s competitive fulfillment marketplace.

For better inventory and fulfillment management once your company starts to grow, be aware of the following:

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Types of Inventory

Inventory ManagementMany fulfillment houses place priority on good customer service, but they often don’t know how to also make it more efficient. However, they need only look to their inventory.

If you’re in product fulfillment, you need to successfully manage your inventory; in fact, failing to do so can mean not having any clients. That’s why it’s essential that you have a proper inventory management system in place to make sure your clients get items in pristine condition and on time.

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